return icon

Leather, footwear industry sets export target of US$25 billion

Vietnam's export of leather, footwear and bags this year will likely increase 10-15 per cent year-on-year to about US$23-25 billion, the Viet Nam Leather, Footwear and Handbag Association (Lefaso) has forecast.



Sport shoes are made at Truong Xuan Shoes Co in Ha Noi. 



The prediction was delivered by Lefaso based on the world economic outlook and developments, control of the COVID-19 pandemic as well as several orders businesses inked for 2022.

Last year, the export turnover of leather, footwear and handbags saw a modest yearly increase of 4.6 per cent to reach $20.78 billion. In which, footwear exports hit $17.77 billion, up 6.1 per cent while export of suitcase and bag products topped nearly $3.01 billion, down 3.2 per cent.

According to Lefaso, traditional markets for Vietnamese leather, footwear and handbags slightly recovered after the impact of the COVID-19 pandemic.

Specifically, the strongest increase was seen in North America with 19.6 per cent, followed by Europe (10.8 per cent) and Oceania (8.9 per cent).

The US remained the largest importer of Vietnamese leather, footwear and bag products with a turnover of over $8.76 billion, up 15.8 per cent year-on-year. China came next with nearly $1.72 billion, down 22.3 per cent and Japan ranked third with over $1 billion, down 10.1 per cent.

The association's report on the industry performance in 2021 showed that the fourth wave of COVID-19 and prolonged social distancing period under Government Directive 16 had caused difficulties for 80 per cent of leather and footwear businesses, especially those in the south which accounted for 70 per cent value and volume of the whole industry.

Many enterprises in southern localities such as HCM City, Dong Nai, Binh Duong, Long An and Tien Giang had to stop operation due to their failure to implement "three-on-side" and "one route, two destinations” models.

For a few businesses that were eligible to operate, reduced production capacity due to employees working from a distance, costs made by disruption of the supply chain of raw materials, and costs of COVID prevention such as testing and vaccinations and "3 on-site" accommodations for workers brought them a headache.

Leather and footwear enterprises suffered great losses because they had to stop or reduce production, having their export orders cancelled by customers, but they still had to pay for costs of maintaining factories and wages to employees, Lefaso noted.

In addition, a shortage of containers, skyrocketing logistics and international shipping costs and increasing prices of fuel and raw material caused many difficulties for export enterprises.

But Lefaso said the picture of the leather and footwear industry was brighter from October 2021. When the pandemic situation in HCM City and other southern provinces had improved, businesses resumed their production under the "new normal" stage.

They had also taken advantage of supportive policies of the State and incentives from Viet Nam’s accession to multiple free trade agreements, particularly the Comprehensive and Progressive Trans-Pacific Partnership to boost exports in the last months of 2021.

By 2025, the nation's leather, footwear and handbag industry aims to satisfy most of the country's demand and maintain its position as a key export industry of the country.

By 2030, it aims to reach sustainable development through modern technologies and management systems that adhere to global standards.

The association said it would continue to work with State authorities on policies to help businesses accelerate production and exports. It would also seek more investment in the supporting industry to increase the use of domestic materials.

Source: VNS

Positive indicators light up footwear trade to US

Positive indicators light up footwear trade to US

Vietnam is emerging as one of the largest suppliers of footwear and leather accessories to the United States, opening more opportunities for domestic companies to exploit the world’s largest market for these goods.

Garment and textiles face reality of fierce global rivalry

Garment and textiles face reality of fierce global rivalry

Vietnam’s garment and textile sector has reached the 2021 export target, but is confronted with ever-growing competition from the Asian continent as well as other markets.


Experience Hanoi in its autumn glory

Thanks to its geographical location, the Vietnamese capital city of Hanoi witnesses contrastingly different weather conditions during the four seasons of the year.


HCYU’s 7th National Congress to be held next week

RoK President hosts State-level welcoming ceremony for Vietnamese counterpart

President Nguyen Xuan Phuc was welcomed in Seoul with a 21-gun salute which is given to a foreign head of state during a State-level visit to the Republic of Korea (RoK).


2022 ASEAN Postal Business Meeting to be held in Binh Dinh

Ministry considering EVN’s proposal for electricity price hikes

The Ministry of Industry and Trade is reviewing Vietnam Electricity's (EVN) proposal to increase electricity prices as rising input cost was weighing on the largest power company with record loss anticipated for this year.

Proper investment needed to develop night-time economy in Vietnam

The night-time economy of major cities in the country has remained underdeveloped due to a lack of proper investment and an absence of a legal framework and policies to promote it, authorities said.

Vietnam's rice exports likely to reach US$3.5 billion this year

Vietnam is anticipated to rake in roughly US$3.5 billion from exporting more than seven million tonnes of rice this year, according to industry insiders.

Local movie to be screened at Australian Vietnamese Film Festival

Vietnamese film "Cô gái từ quá khứ" (Girl from the past) will be introduced at the Australian Vietnamese Film Festival (AVFF) 2022 which is getting underway in Melbourne, Australia.

Auctions for car licence plates to be tested from July 2023

The starting price of a car licence plate put up for auction is VND40 million. The price may increase by increments of VND5 million.

Purpose-led business to drive superior performance

Working and developing a career at an enterprise with a mission towards sustainable development, employees can bring their goals to life.

Vietnam is well-positioned for green hydrogen production

Green hydrogen (GH2) industrial development is a direction for Viet Nam in the energy transition roadmap to achieve the goal of zero carbon emissions by 2050 but challenges remain, experts said.

Vietnamese Ao Dai honoured at Hanoi festival

Young designer Vu Thao Giang introduced a collection of Ao Dai, a traditional long dress of Vietnam, kick-starting the 2022 Hanoi Tourism Ao Dai festival oon December 2.

Entertainment and cultural events of the week (December 5-11)

Upcoming entertainment and cultural events in Vietnam's major cities on December 5-11.

Three belts on the line at 'Fortunes of War' boxing event in Vung Tau

A blockbuster "Fortunes of War" boxing event will bring together Asia's best fighters in 12 bouts, including three title matches, sanctioned by the IBF and WBO on December 10 at The Grand Ho Tram Strip, Ba Ria Vung Tau Province.

Gold items popular with wealthy Vietnamese

Wealthy people in Vietnam are willing to spend money for their villas, ornamental plants and cars.