Vietnam expected to overtake China in leather, footwear exports to US market

Leather and footwear exports will reach over US$22 billion this year, as Vietnam is expected to overtake China as America’s number one supplier in these sectors.
vietnam expected to overtake china in leather footwear exports to us market

Workers manufacture shoes at Phuc Mau Co., Ltd, in the northern province of Thai Binh. Leather and footwear exports are expected to exceed US$22 billion this year

A 2019 breakdown of Vietnam’s worldwide exports shows US$18.3 billion from footwear and US$3.75 billion from handbags, wallets, suitcases, hats and umbrellas expected for the whole year.

Officials note that the increase in leather exports is largely due to foreign investment from China to Vietnam, as a result of the U.S.-China trade war, along with benefits for Vietnamese exports coming from the free trade agreements it has signed.

However, the sector has faced challenges to meet the target. The lack of input materials for the sector has forced Vietnam to make significant expenditures on material imports, hindering the development of local supporting industries and the fulfillment of commitments on product traceability.

Moreover, labor productivity in the sector is low. A Vietnamese worker can make three to four pairs of shoes per day, while a Chinese worker can produce seven to eight pairs.

The sector’s added value and foreign currency revenue remain low as well. Domestic firms produce only one-fifth of the total footwear product volume, while the remainder is manufactured by foreign-invested firms.

According to the General Department of Vietnam Customs, Vietnam exported US$10.36 billion worth of footwear and US$2.14 billion of handbags, wallets, suitcases, hats and umbrellas in the January-July period, a respective increase of 12.9% and 10.6% over the same period last year.

In total, leather goods and footwear generated US$12.51 billion in export revenue in the period, up 12.5% year-on-year, well above the country’s overall export growth of 7.8%.

This growth was impressive, compared with the target, and meaningful to more than 2,000 enterprises operating in the sector with over 1.5 million workers. The results helped Vietnam rank third in terms of production volume and second in exports.

In the seven-month period, 44 import markets of Vietnam’s leather and footwear products reported export turnover of over US$10 million each, including 15 markets reporting export revenue of more than US$100 million each. Many markets posted significant growth, such as the United States, China, Belgium, Japan, India and Canada.

Source: Saigon Times

Related News

Vietnam and China promote Customs cooperation

Vietnam and China promote Customs cooperation

VCN - The representative of Vietnam Customs and the Ambassador Extraordinary and Plenipotentiary of the People's Republic of China to Vietnam exchanged the Action Plan between the General Department of Vietnam Customs (GDVC), the Ministry of Finance of the Socialist Republic of Vietnam and the General Administration of Customs of the People's Republic of China (GACC) on the Mutual Recognition Agreement on Authorized Economic Operator of Vietnam Customs and the Enterprise Credit Management Program of China Customs, on October 13, 2024, at the Government headquarters.
Binh Dinh Customs facilitate enterprise exporting wood

Binh Dinh Customs facilitate enterprise exporting wood

VCN - More than 100 enterprises carrying out procedures for exporting wood through Quy Nhon port have been supported by Binh Dinh Customs Department to facilitate. This has been recognized and highly appreciated by enterprises.
Vietnam

Vietnam's economy remains growth momentum

VCN- According to Mr. Nguyen Ba Hung, Chief Economist of the Asian Development Bank (ADB), public investment will play a key role in economic recovery and growth in 2024. Fiscal measures to support growth and public investment are key policy solutions to stimulate growth year- end months.
To successfully export fresh coconuts to China

To successfully export fresh coconuts to China

VCN - The large demand of the Chinese market not only exposes a "golden” opportunity to the Vietnamese coconut industry, but also poses potential risks for businesses if there is no systematic investment in raw material areas as well as strict control over the cultivation, harvesting, and processing processes...

Latest News

Linkage - the "key" to sustainable development of agricultural value chains

Linkage - the "key" to sustainable development of agricultural value chains

VCN - Promoting sustainable and effective development of agricultural value chains is a core factor in restructuring Vietnam's agricultural sector and the key to optimize the value of Vietnam's agricultural exports.
Supporting industry enterprises: Learning standards, understanding opportunities

Supporting industry enterprises: Learning standards, understanding opportunities

VCN - Currently, many potential industries have "opened" opportunities for Vietnamese enterprises to enter, such as the semiconductor industry, supporting industries for the aviation sector. However, the higher the added value of the sector, the more it requires enterprises to meet international standards.
Vietnam’s distinctive agricultural exports to China exhibited in Hanoi

Vietnam’s distinctive agricultural exports to China exhibited in Hanoi

An exhibition showcasing Vietnam’s distinctive farm produce exported to China opened in Hanoi on October 13, featuring the participation of 16 local enterprises and introducing over 50 categories of high-quality products from across the three regions of the country.
100 most valuable Vietnamese brands on the limelight

100 most valuable Vietnamese brands on the limelight

This year’s Brand Finance Vietnam 100 Report was also released to provide a comprehensive picture of the valuations.

More News

Need to quickly act to catch up with the "green" trend

Need to quickly act to catch up with the "green" trend

VCN - With the movement from the global level to Vietnam's main markets, as well as the strong commitment of the Vietnamese Government, the trend of "compulsory green/sustainable transformation" has become clear to Vietnamese businesses instead of voluntary as before. However, the level of readiness of businesses is not high.
Businesses cooperate to develop advanced technology

Businesses cooperate to develop advanced technology

VCN- In order to foster development of the high-tech sector, one of factors is close cooperation between businesses to improve competitiveness and promote innovation.
Export target for 2024 set at US$400 billion

Export target for 2024 set at US$400 billion

VCN - Since the beginning of the year, Vietnam's export activities have continued to recover. It is forecasted that the total export turnover for the entire year may reach a historic milestone of US$400 billion.
Thai Binh intensifies cooperation with Russian localities

Thai Binh intensifies cooperation with Russian localities

A delegation from the northern province of Thai Binh, led by Chairman of the provincial People’s Council Nguyen Tien Thanh, on October 10 met with representatives of the Moscow Chamber of Commerce and Industry, along with several Russian businesses.
Ho Chi Minh City partners with nine provinces to boost import and export activities

Ho Chi Minh City partners with nine provinces to boost import and export activities

VCN - Ho Chi Minh City (HCMC) and nine provinces in the northern and north-central regions are cooperating in socio-economic development, leveraging each region's advantages and potential to boost import and export activities.
Vietnam

Vietnam's second rice brand enters picky Japanese market

Japonica - AAN has become the second Vietnamese rice brand to have entered Japan, with a ceremony held on October 9 to debut the produce.
Enterprises need to be ready to respond to trade defense

Enterprises need to be ready to respond to trade defense

VCN - According to the Department of Trade Defense, through the process of protecting the rights of Vietnamese manufacturing and exporting enterprises in each trade defense case, the outcome of the appeal depends largely on the quality of coordination between the parties involved.
Foreign investors interested in green development, semiconductor industry in Vietnam

Foreign investors interested in green development, semiconductor industry in Vietnam

Green, clean development and semiconductor chip production are among the sectors in Vietnam that foreign investors are interested in, according to VinaCapital CEO and Founding Partner Don Lam.
Vietnam’s stainless steel exports under dual investigation

Vietnam’s stainless steel exports under dual investigation

The US Department of Commerce (DOC) has initiated an anti-dumping and countervailing duty investigation into corrosion-resistant steel (CORE) imported from Vietnam, alongside nine other countries and territories.
Read More

Your care

Latest Most read
Linkage - the "key" to sustainable development of agricultural value chains

Linkage - the "key" to sustainable development of agricultural value chains

Promoting sustainable and effective development of agricultural value chains is a core factor in restructuring Vietnam's agricultural sector and the key to optimize the value of Vietnam's agricultural exports.
Supporting industry enterprises: Learning standards, understanding opportunities

Supporting industry enterprises: Learning standards, understanding opportunities

VCN - Currently, many potential industries have "opened" opportunities for Vietnamese enterprises to enter, such as the semiconductor industry, supporting industries for the aviation sector. However, the higher the added value of the sector, the more it r
Vietnam’s distinctive agricultural exports to China exhibited in Hanoi

Vietnam’s distinctive agricultural exports to China exhibited in Hanoi

An exhibition showcasing Vietnam’s distinctive farm produce exported to China opened in Hanoi on October 13, featuring the participation of 16 local enterprises and introducing over 50 categories of high-quality products from across the three regions of the country.
100 most valuable Vietnamese brands on the limelight

100 most valuable Vietnamese brands on the limelight

This year’s Brand Finance Vietnam 100 Report was also released to provide a comprehensive picture of the valuations.
Need to quickly act to catch up with the "green" trend

Need to quickly act to catch up with the "green" trend

VCN - With the movement from the global level to Vietnam's main markets, as well as the strong commitment of the Vietnamese Government, the trend of "compulsory green/sustainable transformation" has become clear to Vietnamese businesses instead of volunta
Mobile Version