return icon

Vietnam’s footwear industry concerned about trade war

The Vietnamese footwear market may face problems if the US imposes a tariff of 25 percent on Chinese products in the current trade war.

Diep Thanh Kiet, deputy chair of the Vietnam Leather & Footwear Association (Lefaso), is worried that Chinese footwear products would flow to other countries, including Vietnam, once they meet the tariff barrier in the US market.



China exports $15 billion worth of footwear products, high-end and popular, to the US each year. However, the tentative taxation on Chinese footwear may lead to a decline in Chinese exports to the market.

“No single country can absorb all the footwear products that China now exports to the US,” Kiet said, adding that the Chinese export volume is extremely high and no other country can replace China in the short term. Even Vietnam, the second biggest footwear exporter in the US, won’t be able to do so.

The deputy chair of Lefaso said nearly 200 footwear importers have sent a petition to US President Donald Trump. He believes that the US government is reconsidering the tariff, because it will prevent products from entering the US, forcing American consumers to buy goods at high prices.

China exports $15 billion worth of footwear products, high-end and popular, to the US each year. However, the tentative taxation on Chinese footwear may lead to a decline in Chinese exports to the market.

The tariff on Chinese footwear products will bring both good and bad results to Vietnam. Vietnam will have the opportunities to make high-value products but international and Chinese brands will choose Vietnam for their production relocation plans. If so, the domestic market would became upset because of the lack of resources for production.

If this scenario happens enterprises will have to scramble for workers, which will push the labor cost up. This will have negative impact on Vietnamese enterprises, especially when the poduction cost in Vietnam is becoming higher.

Vietnam is building a new strategy on attracting FDI to attract high technology and higher administrative capability. However, amid the wave of production relocation from China, the Foreign Investment Agency (FIA) has warned of the negative impact on domestic production as China Hong Kong and Taiwan had invested $7.6 billion in Vietnam just in the first five months of 2019.

Chinese total investment in Vietnam in 2018 was only $2.46 billion.

“Domestic footwear enterprises are worried stiff about the possibility of losing workers,” Kiet said, adding that foreign invested enterprises (FIEs) want to expand their factories and upgrade equipment.

At present, footwear export is mostly in the hands of FIEs. There are about 800 FIEs in the industry, which just account for 25 percent of footwear enterprises, but make up 77 percent of export value.

Kim Chi



How does yuan price reduction affect garment, footwear industries?

How does yuan price reduction affect garment, footwear industries?

The sudden depreciation of Chinese yuan against the US dollar brings more difficulties to Vietnam’s yarn industry, according to Vietnam Textile and Apparel Association (VITAS).

Safety initiative in apparel and footwear factories started in VN

Safety initiative in apparel and footwear factories started in VN

The Vietnam Textile and Apparel Association (VITAS) in co-operation with IDH – a Dutch sustainable trade initiative – kick-started the Life and Building Safety Initiative (LABS).


Ministry listens to firms' difficulties, pledges to raise support

The Ministry of Planning and Investment will propose policies to remove obstacles for enterprises and enable them to seize opportunities to accelerate production and business, Minister Nguyen Chi Dung said.

Vietnam's e-government procurement system set to launch in August

The e-GP would allow effective and transparent management of the public procurement process.


Newly-established businesses in H1 exceed 70,000

Australian Foreign Minister enjoys Pho ga in Hanoi

Australian Foreign Minister Penny Wong enjoys Hanoi's specialty of Pho ga or chicken noodles as she arrived in the city on her first visit to Vietnam.

Vietnamese ceramic artist sets two Guinness World Records

Two Vietnamese ceramic works will be recognised as having set Guinness World Records at a ceremony in Hanoi today (June 30).


USAID assists Vietnamese businesses to reduce greenhouse gas emission

Vietnam Airlines plans to restore its entire flight network by the end of 2023

The restoration of international flight routes is an important condition for Vietnam Airlines to reduce losses and become profitable in the near future.

Saigon Zoo elephant dung used to make paper

A Saigon Zoo member of staff and a group of students are transforming elephant dung into paper.

Future of Hanoi’s 120-year-old Long Bien Bridge unclear

Long Bien Bridge, the iconic bridge across Hanoi’s Red River, has degraded, but no major repair plan has been finalized and its future is unclear.

Information & Communications Ministry works to create modern digital infrastructure

The Ministry of Information and Communications will exert efforts to create a modern and safe national digital infrastructure, and a new space for digital economic growth, and developing e-government towards the building of a digital government.

Vietnamese NA Chairman begins official visit to UK

National Assembly (NA) Chairman Vuong Dinh Hue arrived at Heathrow Airport in London on June 28 (local time), beginning his three-day official visit to the UK.

Vietnam to establish industrial environmental index

The Ministry of Planning and Investment (MPI) has called for the implementation of an industrial environmental index in Vietnam, according to Le Thanh Quan, head of MPI's department of economic zone management.

Rising costs cast doubt on wood companies growth prospects

As wood export turnover is rebounding with rising demand in the domestic market, the revenues of wood enterprises are expected to advance.

Vietnam’s GDP expands 7.72% in second quarter of 2022

Vietnam’s Gross Domestic Product (GDP) in the second quarter of this year was estimated to increase 7.72% year-on-year, higher than the growth rates in the same quarters during the 2011-2021 period.

Danish Crown Prince Couple to visit Vietnam in November

Wind energy and energy efficiency will be in focus during the visit, which will take place on November 1-2.