Thanks to the advantage of cheap labor, Vietnam has attracted a lot of FDI projects in labor deficit industries such as leather, footwear, textiles, etc. However, due to the weak supporting industry, so Despite being the world’s third-largest producer and second-largest exporter of footwear of all kinds, Vietnam still has to depend on imported raw materials.
Import
Vietnam mainly imports leather from China, Italy and Thailand. In 6M/2022, Vietnam is estimated to import 938.4 million VND
USD leather, up 4.9% over the same period in 2021.
Manufacturing
In the first 6 months of 2022, footwear factories in concentrated localities began to produce again at normal capacity and increased by 13.1% over the same period in 2021.
Export
According to data of the General Department of Customs, in the first 6 months of 2022, footwear export turnover reached about 11.8 billion USD, a sharp increase compared to the same period in 2021. The main export markets are the US and Europe with high value. Exports are constantly increasing despite the impact of the epidemic.
Distribution
The strong growth of internet retail during the outbreak, played a huge role in boosting footwear sales.
Through this channel, consumers can buy products easily from anywhere in the country and at any time at reasonable prices.
However, according to VIRAC, Vietnam’s footwear export forecast in the last 6 months of 2022 still faces some difficulties due to lack of human resources, high raw material costs, etc.
