Econ
Vietnam is world’s second largest footwear exporter
Vietnam shipped more than 1 billion pairs of shoes last year, helping the country maintain the position as the second biggest footwear exporter in the world.
According to statistics of the World Footwear Magazine, of 27 billion pairs of shoes exported worldwide last year, 1.02 billion pairs were from Vietnam, equivalent to 7.4 percent of the global footwear market share.
China was the world’s largest footwear exporter last year with 9.31 billion pairs of shoes, representing 67.3 percent of the global footwear market share.
Statistics from Vietnam’s General Department of Customs also showed that the value of Vietnam’s exported footwear products have surged consecutively in the past years. Accordingly, the product’s export revenue was $8.4 billion in 2013, $10.3 billion in 2014, $12 billion in 2015, $13 billion in 2016 and $14.6 billion in 2017.
By the end of last year, Vietnam had 863 footwear exporters, up 15 percent against the previous year. Foreign direct investment (FDI) firms play a key role in the industry’s export as they accounted for more than 80 percent of the industry’s $14.65 billion total export value last year, or $11.78 billion.
Vietnamese footwear products exported to more than 100 markets worldwide, of which the United States was the largest export market with turnover of $5.1 billion last year, up 14 percent against 2016.
Despite being the world’s largest footwear exporter, China was Vietnam’s second largest export market with $1.14 billion last year, up 26 percent against the previous year.
Belgium, Germany and Japan followed with turnover of $907.5 million (up 10 percent), $992.6 million (up 30 percent) and $751 million (up 11.3 percent), respectively.
According to Deputy Chairman of the Vietnam Leather, Footwear and Handbag Association (LEFASO) Diep Thanh Kiet, Vietnamese leather and footwear producers are focusing on adding value to their export products and promoting the development of supporting industries.
Kiet said that the export value of a Vietnamese pair of shoes averaged at more than $15 last year while the world’s rate was at only nearly $9.
The local footwear industry is also enhancing the investment in supporting industries, Kiet said, citing that the production of leather materials and accessories served for the domestic footwear and handbag industries last year surged by 15 percent and 10 percent, respectively, while the rising rate of the footwear and handbag industry was only below 2 percent.
It is forecast that the country can supply 60 percent of leather materials for domestic footwear and handbags by 2030 compared to roughly 45 percent at present.
Kiet predicted that Vietnam’s leather and footwear sector will still have a competitive edge for the next two decades. Vietnam has moved up to the second place globally in leather and footwear exports and third in manufacturing, he said.
Kiet believed there are opportunities for the industry to continue developing as Vietnam has free trade agreements with major markets like Japan, the Customs Union of Russia, Kazakhstan and Belarus, the Republic of Korea and ASEAN in addition to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and an agreement with the European Union.
According to Nguyen Thi Xuan Thuy, chief of the Strategy and Integration Policy Office under the Ministry of Industry and Trade, Vietnam has advantages in workforce cost compared to China and Thailand and has succeeded in producing and exporting high-value products.
She urged Vietnamese firms to conform to quality standards, ensure the rate of locally-made products and commit to social responsibilities. Apart from traditional markets such as the US and the EU, they should also focus on Asia, which consumes more than half of footwear globally.
Export value of a Vietnamese pair of shoes averaged at more than $15 last year
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Statistics from Vietnam’s General Department of Customs also showed that the value of Vietnam’s exported footwear products have surged consecutively in the past years. Accordingly, the product’s export revenue was $8.4 billion in 2013, $10.3 billion in 2014, $12 billion in 2015, $13 billion in 2016 and $14.6 billion in 2017.
By the end of last year, Vietnam had 863 footwear exporters, up 15 percent against the previous year. Foreign direct investment (FDI) firms play a key role in the industry’s export as they accounted for more than 80 percent of the industry’s $14.65 billion total export value last year, or $11.78 billion.
Vietnamese footwear products exported to more than 100 markets worldwide, of which the United States was the largest export market with turnover of $5.1 billion last year, up 14 percent against 2016.
Despite being the world’s largest footwear exporter, China was Vietnam’s second largest export market with $1.14 billion last year, up 26 percent against the previous year.
Belgium, Germany and Japan followed with turnover of $907.5 million (up 10 percent), $992.6 million (up 30 percent) and $751 million (up 11.3 percent), respectively.
According to Deputy Chairman of the Vietnam Leather, Footwear and Handbag Association (LEFASO) Diep Thanh Kiet, Vietnamese leather and footwear producers are focusing on adding value to their export products and promoting the development of supporting industries.
Kiet said that the export value of a Vietnamese pair of shoes averaged at more than $15 last year while the world’s rate was at only nearly $9.
The local footwear industry is also enhancing the investment in supporting industries, Kiet said, citing that the production of leather materials and accessories served for the domestic footwear and handbag industries last year surged by 15 percent and 10 percent, respectively, while the rising rate of the footwear and handbag industry was only below 2 percent.
It is forecast that the country can supply 60 percent of leather materials for domestic footwear and handbags by 2030 compared to roughly 45 percent at present.
Kiet predicted that Vietnam’s leather and footwear sector will still have a competitive edge for the next two decades. Vietnam has moved up to the second place globally in leather and footwear exports and third in manufacturing, he said.
Kiet believed there are opportunities for the industry to continue developing as Vietnam has free trade agreements with major markets like Japan, the Customs Union of Russia, Kazakhstan and Belarus, the Republic of Korea and ASEAN in addition to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and an agreement with the European Union.
According to Nguyen Thi Xuan Thuy, chief of the Strategy and Integration Policy Office under the Ministry of Industry and Trade, Vietnam has advantages in workforce cost compared to China and Thailand and has succeeded in producing and exporting high-value products.
She urged Vietnamese firms to conform to quality standards, ensure the rate of locally-made products and commit to social responsibilities. Apart from traditional markets such as the US and the EU, they should also focus on Asia, which consumes more than half of footwear globally.
