Vietnam leather and footwear industry report Q3/2022
The picture of the leather and footwear industry in the first 9 months of 2022
In the export structure of Vietnam, the US is the largest footwear export market of Vietnam with the structure accounting for about x% of export value. In the first 9 months of 2022, Vietnam’s footwear export turnover to the US continued to increase. And reached $7,726.1 million, up x% over the same period in 2021.
The EU is Vietnam’s second largest footwear export market, after the US. In 9M/2022, Vietnam exported 4,368.9 million USD of footwear to the EU, up x% over the same period in 2021. In which, export turnover to main markets such as Belgium, Germany, Netherlands, Spain all grew above x0% svck.
It is forecast that the leather and footwear industry in the late 2022 and 2023 period will face many challenges when
From now to the first quarter of 2023, it is forecasted that the demand for footwear products from foreign markets will slow down.
When the situation of orders in the US and EU countries is showing signs of slowing down. The reason is that the inventory is still relatively large. In addition, rising inflation and weak purchasing power in the last months of the year make these businesses focus on clearing inventory rather than importing new goods.
The supply of raw materials from the Chinese market, which provides more than 50% of raw materials for the leather and footwear industry, may be negatively affected.
From the situation of the Covid-19 epidemic re-emergence along with the prolonged Zero-Covid policy of the Chinese Government.
Shortage of labor resources will continue to be a dilemma for enterprises in the leather and footwear industry.
While leather and footwear is a labor-intensive industry in Vietnam’s economic sectors (the leather and footwear industry alone needs about 1.4 million additional workers per year, accounting for x% of the entire processing and manufacturing industry).
However, Vietnam’s footwear exports are forecast to grow at x/year in the period 2022 – 2026. The driving factors include:
Consumer demand in Vietnam’s main export markets such as the US, EU, Japan, etc. is forecasted to grow in the long term;
Orders from China moved to Vietnam due to China…
The positive impact of the EVFTA, RCEP & CPTPP opens up a larger market for Vietnamese footwear.
Read more about Vietnam pulp and paper industry report in the quarter 2/2022: here
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