China, the world’s largest shoe manufacturer, is following Vietnam. Currently, Vietnam exports more than one billion pairs of shoes every year and its production continues to increase.
New data from Research and Markets shows that Vietnam’s footwear exports to the EU account for the largest share of total exports. At the end of 2021, there were about 2200 companies generating footwear in Vietnam, basically concentrated in the Ho Chi Minh City region.
The report also indicates that footwear giants Nike and Adidas have selected Vietnam as their main production base. The change in production and export to Vietnam is due to the decrease in costs. Nike has more than a hundred suppliers in Vietnam, with 96 factories concentrated in the southern region.
Adidas, in its 2020 annual report, said 98% of private label footwear is manufactured in Vietnam, its largest supply region, accounting for about 40% of its total footwear production in 2021.
According to the report, the effect of Covid led to a year-on-year decline of 8. 6% in 2020 to $16. 75 billion. In 2021, Vietnam’s footwear products were exported to more than a hundred countries, with around $17. 8 billion in footwear production.
The new agreements between Vietnam and Europe (the EU-Vietnam Free Trade Agreement, EVFTA) have made cargo less difficult and cheaper, which is why EU exports amount to 40%. An agreement with North America: the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP): has boosted Vietnam’s footwear exports to Canada and Mexico.
The report says that while Vietnam has capitalized on its export activities, its local footwear companies remain weak and most of the category’s market is owned by foreign companies.
According to data from the Observatory of Economic Complexity (OEC), Vietnam’s fastest-developing textile footwear export markets between 2019 and 2020 were the Netherlands ($60. 7 million), China ($22. 5 million) and Austria ($19. 6 million).
For the full report, visit www. researchandmarkets. com.
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