Leather and footwear industry targets US$27 billion in 2023 exports

The leather and footwear industry is striving to reach US$27 billion in export turnover in 2023, an increase of about 10% compared to one year earlier amid shrinking major markets and falling demand.

undefined

In 2022, the sector grew by more than 30%, with one of the reasons behind this high growth being the effective utilization of free trade agreements (FTAs) such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA).

Furthermore, the shift of production to be able to use local sources of raw materials to increase the localization rate of raw materials in a bid to meet the requirements relating to the origin of goods under FTAs helped the leather and footwear industry meet the export target.

However, many objective factors are forecast to affect the industry’s export growth in the year ahead.

According to Phan Thi Thanh Xuan, vice president and general secretary of the Vietnam Leather, Footwear and Handbag Association (LEFASO), in major export markets such as the United States, the EU, and Japan, inflation has reduced consumer purchasing power, while businesses face high inventories. It is therefore expected that by the end of the second quarter of the year, the leather and footwear industry will begin to record some positive signs.

With some major export markets in the process of shrinking, businesses need to actively improve the overall competitiveness of their products, as well as move to expand their export markets.

"Solutions that we are aiming for is to find new sources of supply, and new markets, and especially to try to make good use of markets in which Vietnam already has signed FTAs. It is worth noting that Vietnamese footwear products also have a pretty good Vietnamese brand name, and the is quite reputable for the product lines, especially sports shoes with big brands. That's why we also hope that amid declining total demand, orders to Vietnam will still be maintained," said Xuan.

Over the past years, the export of footwear and handbags to markets which have FTAs with Vietnam has recorded a growth rate of between 10% and 20%. This serves as a basis for the entire industry to set an export target of US$27 billion this year.

Source: VNS
english.vov.vn

Related News

Footwear faces concerns about new regulations in export markets

Footwear faces concerns about new regulations in export markets

VCN - Despite growth in the first months of 2024, the leather and footwear industry is facing new regulations in export markets related to supply chain traceability.
It is necessary to soon have instructions for implementing the Textile, Garment, and Footwear Development Strategy

It is necessary to soon have instructions for implementing the Textile, Garment, and Footwear Development Strategy

VCN - Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association shared about the challenges of the industry in the trend of greening and sustainable development taking place dramatically.
Export "leaders" are gradually recovering

Export "leaders" are gradually recovering

VCN - The trade balance of goods in the first 7 months of 2023 is estimated at a trade surplus of 15.23 billion USD - a record number for the trade balance of goods in the first 7 months. Localities such as Ho Chi Minh City, Bac Ninh, Bac Giang, Binh Duong, and Dong Nai are still trying to get the export "train" rolling.
Footwear will become Vietnam

Footwear will become Vietnam's next billion-dollar export item to Canada

VCN - At the beginning of the year, leather and footwear, one of the four commodity groups that account for the largest proportion of Vietnam's export turnover to Canada, has maintained a double-digit growth rate - up 46.6%. However, with great competition from other countries, here, the leather and footwear industry must have a new strategy instead of relying on outsourcing orders.

Latest News

Agricultural, forestry and fishery product exports continue to "scoring points"

Agricultural, forestry and fishery product exports continue to "scoring points"

VCN - In the first four months of 2024, the country's total export turnover of agricultural, forestry and fishery products is estimated to reach more than US$19 billion, an increase of 23.7 percent compared to the same period last year. Most key agricultural and forestry export products increased higher than the same period last year as well as the export value to all markets increased.
Build and protect the rice value chain against market fluctuations

Build and protect the rice value chain against market fluctuations

VCN - Due to recent risks and challenges,business performancehave been badly hurt andmany chain links have been under threats ..., the rice industry needs to enhance the role of ministries, branches, localities, and farmers and businesses in building and protecting the rice value chain against market fluctuations.
VN

VN's Steel industry ranks 12th in world crude steel production

This accomplishment not only highlights the industry’s rapid growth in production output but also signifies its increasing independence and diversification of product types.
Chu Lai Port installs specialised crane system

Chu Lai Port installs specialised crane system

Chu Lai International Port belonging to Trường Hải International Logistics Limited Liability Company (THILOGI) has installed a new specialised crane system that costs more than VNĐ400 billion (US$15.7 million).

More News

The processing and manufacturing industry increased by 6.3% in 4 months

The processing and manufacturing industry increased by 6.3% in 4 months

VCN - Continue the recovery momentum from the end of 2023, industrial production in April and the first 4 months of 2024 continues to show a positive trend. Of which, the processing and manufacturing industry increased by 6.3%.
Corporate profits enter recovery cycle

Corporate profits enter recovery cycle

VCN - The recently released Q1 2024 business results update by SSI Securities Corporation shows that corporate profits may have overcome the most challenging period and entered a phase of recovery and more stable growth.
Focusing on the "readiness" factor waiting for foreign investors in the high-tech field

Focusing on the "readiness" factor waiting for foreign investors in the high-tech field

VCN - According to a representative of the Ministry of Planning and Investment (MPI), investment by foreign corporations and businesses depends on many factors, but it is necessary to focus on factors related to Vietnam's readiness.
Exploiting the potential of Dong Nai

Exploiting the potential of Dong Nai's largest seaport

VCN - Phuoc An Port - the largest seaport in Dong Nai is expected to come into operation in July 2024, which will contribute to a significant increase in the amount of goods arriving at Dong Nai seaport. In order to meet the needs of import and export and create favorable conditions for businesses, customs management units in the area also need to change their model.
Hanoi calls for investments in six urban areas projects

Hanoi calls for investments in six urban areas projects

Hanoi is calling for investment in six urban areas projects in Dong Anh district worth a total of 34 trillion VND (1.3 billion USD).
The food industry aims to green packaging

The food industry aims to green packaging

VCN - Greening food packaging is not only a trend but also a strategic transformation of businesses to meet environmental requirements. Therefore, businesses need to focus on using environmentally friendly packaging materials that are easy to recycle while ensuring product quality.
"The key" to growth motivation for enterprises

"The key" to growth motivation for enterprises

VCN - Unlocking growth motivations is an urgent requirement from the Government to help enterprises and the economy quickly recover. But unlocking the driving motivations must be accompanied by drastic reforms in institutions and the business environment to create conditions and increase confidence for enterprises to step forward.
Exports of four localities achieve tens of billions of USD

Exports of four localities achieve tens of billions of USD

VCN - By the end of April, there are four localities and cities reaching an export turnover of US$10 billion or more, according to the statistics of General Department of Vietnam Customs.
Rapid greening of the logistics sector to avoid being "eliminated"

Rapid greening of the logistics sector to avoid being "eliminated"

VCN - In the current context, if criteria for greening the logistics sector are not quickly and immediately implemented, businesses will face significant difficulties in the future and gradually be "eliminated" from domestic and global business, trade, and import-export activities.
Read More

Your care

Latest Most read
Agricultural, forestry and fishery product exports continue to "scoring points"

Agricultural, forestry and fishery product exports continue to "scoring points"

In the first four months of 2024, the country's total export turnover of agricultural, forestry and fishery products is estimated to reach more than US$19 billion, an increase of 23.7 percent
Build and protect the rice value chain against market fluctuations

Build and protect the rice value chain against market fluctuations

VCN - From a business perspective, Mr. Dinh Minh Tam, Director of Co May Co., Ltd. (Dong Thap) said that in the first months of the year, the company's main export markets all grew well.
VN

VN's Steel industry ranks 12th in world crude steel production

This accomplishment not only highlights the industry’s rapid growth in production output but also signifies its increasing independence and diversification of product types.
Chu Lai Port installs specialised crane system

Chu Lai Port installs specialised crane system

Chu Lai International Port belonging to Trường Hải International Logistics Limited Liability Company (THILOGI) has installed a new specialised crane system that costs more than VNĐ400 billion (US$15.7 million).
The processing and manufacturing industry increased by 6.3% in 4 months

The processing and manufacturing industry increased by 6.3% in 4 months

Continue the recovery momentum from the end of 2023, industrial production in April and the first 4 months of 2024 continues to show a positive trend.
Mobile Version