Want to be in the loop?
subscribe to
our notification
Business News
FOOTWEAR EXPORTS SEEN REACHING US$27 BILLION THIS YEAR
Vietnam’s leather and footwear export revenue is expected to reach around US$26-27 billion this year, up from US$24 billion last year, according to the Vietnam Leather, Footwear and Handbag Association (Lefaso).
This optimistic forecast reflects the industry’s efforts to expand and diversify its markets. Lefaso indicated that Vietnam’s footwear sector will concentrate on traditional markets like the U.S. and the European Union, alongside markets with free trade agreements to maximize opportunities.
Companies are rehiring workers to ramp up production following recent cutbacks, said Phan Thi Thanh Xuan, vice chairwoman and secretary general of Lefaso.
The industry is shifting away from low-value products due to their low profit margins. Instead, it will focus on mid-to-high value segments to boost profitability.
Vietnam’s footwear exports surpassed US$6.5 billion in the first half of this year, a 5.7% increase over the same period in 2023. Xuan noted that the main export markets were the U.S. (35%), the EU (26%), Japan, South Korea, and China.
China is emerging as a significant market, buying 9% of Vietnam’s footwear exports. Experts highlight Vietnam’s competitive edge due to its numerous free trade agreements.
Vietnam has over 1,000 footwear factories employing around 1.5 million workers, contributing about 8% to the nation’s GDP. The southwestern and central regions offer ample labor, low costs, and large areas of vacant land, presenting significant growth opportunities.
Domestic firms are urged to leverage FTAs, especially with the EU, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), to drive export growth.
Vietnam’s industrial strategy, outlined in Decision No. 879/QD-TTG on June 9, 2014, prioritizes textiles and footwear as key industries through 2025, with a vision toward 2035. This strategy underscores the importance of the footwear sector in the country’s economic development plans.
Source: VNS
Related News
POSITIVE ECONOMIC OUTLOOK FOR VIETNAM
Driven by strong recent economic performance, many foreign agencies have upgraded Vietnam's growth forecasts for 2024 and 2025. The National Assembly set a GDP growth target of 6.5-7% for 2025, aiming for 7-7.5%, while the Prime Minister set a more ambitious 8% growth target.
KEY SOLUTIONS TO DRIVE GREEN GROWTH
The Prime Minister has issued Directive 44/CT-TTg, dated December 9, 2024, outlining key tasks and solutions to accelerate the implementation of the National Strategy on Green Growth for the 2021-2030 period, with a vision to 2050.
EFFECTIVE RESTRUCTURING BODES WELL FOR LOCAL AIRLINES
Aviation businesses in Vietnam are expected to perform better in 2025, driven by effective restructuring. National flag carrier Vietnam Airlines is on the way to making consolidated revenues of around $4.37 billion in 2024, up from $3.88 billion in 2023.
PM ORDERS SWIFT RESOLUTION OF CHALLENGES FOR RENEWABLE ENERGY PROJECTS
Prime Minister Phạm Minh Chính has laid stress on the need to complete the resolution of obstacles for renewable projects by February 2025 to prevent wastefulness, contributing to ensuring electricity for development.
CLEAR LEGAL FRAMEWORK NEEDED TO UNLOCK DIGITAL ASSET POTENTIAL
The past decade has seen remarkable advancements in technology worldwide, particularly in digital assets such as blockchain, cryptocurrencies, asset tokenization and decentralized finance (DeFi). Once unfamiliar, digital assets have now become integral to the global financial system. Leading nations in this field not only to drive innovation but also establish a strategic edge in the global economy.
SPECIAL INVESTMENT PROCEDURE: A GAME CHANGER FOR HIGH-TECH PROJECTS IN VIET NAM
Viet Nam is poised for a regulatory shift with the upcoming implementation of a special investment procedure starting earlier next year. Starting from January 15, 2025, investors will be able to enroll for investment under special procedures as outlined in the Draft Decree detailing the Investment Law.