VIETNAM LEATHER AND FOOTWEAR INDUSTRY

The world tanning industry is characterized by small or medium-sized family businesses. According to the World Footwear, the total production of global footwear in 2017 increased by 2.2% compared to 2016. The footwear consumption continuously recovered in the last 2 years, the consumption value in 2018 was nearly equal to 2014 and achieved the growth rate of 3.7% over the same period last year.

In Vietnam, the total output of raw leather supplied to the tanning industry is estimated at 220,000- 250,000 tons. The compound annual growth rate for the period of 2012 – 2016 reached 14%, in 2018 the leather production reached 75.1 million m², rising 7.4% over the same period in 2017. Continuing the growth momentum from the previous year with the positive impact from CPTPP, the footwear production in Q1 / 2019 reached 432.1 million pairs, of which leather shoes and sandals increased by 11.7% compared to the same period in 2018.

Vietnam ranks among the world’s four largest footwear producers in terms of quantity. In the first month of 2019, Vietnam’s footwear export turnover increased by 14.1% over the same period of 2018, in which FDI enterprises accounted for 78.2% of total export value. The export value of the footwear industry is forecasted to increase from 8-15% in the period of 2018 to 2020, reaching over 19.3 billion USD.

The value of shoe imports continuously increased over the years with CAGR in the period of 2012-2018 reaching 25.5%. However, in fact, footwear exporting countries show that the export value of footwear into Vietnam was about 4 times higher than the statistics. Thus, a significant amount of footwear consumed in Vietnam was introduced through smuggling and quota.

Abbreviations
Executive summary
1. Business environment
1.1. Macroeconomic situation
1.2. Legal framework
2. Overview of Global Leather and Footwear Industry
2.1. Value chain of Leather and Footwear Industry
2.2. Production Methods
2.3. Leather industry
2.3.1. Production
2.3.2. Consumption
2.4. Footwear industry
2.4.1. Production
2.4.2. Consumption
3. Overview of Vietnam Leather- Footwear industry
3.1. History of Establishment and Development
3.2. Industry Scale and Features
3.3. Leather industry
3.4. Footwear industry
3.5. Some other leather products
3.6. SWOT analysis
3.7. Industry Planning
3.8. Driving Forces and Forecasts
4. Enterprise Analysis

Pou Yuen Vietnam Co., Ltd (HCMC)
TaeKwang Vina Industrial JSC (Dong Nai)
Chang Shin Vietnam Co., Ltd (Dong Nai)
Pou Sung Vietnam Co., Ltd (Dong Nai)
Pou Chen Vietnam Co., Ltd (Dong Nai)
Dona Standard Vietnam Footwear Co., Ltd (Dong Nai)
Thai Binh Footwear Investment and Production JSC (Binh Duong)
Ty Xuan Co., Ltd
Phuong Dong Dong Nai Co., Ltd
Moc Bai

List of figures
Figure 1: GDP growth, 2016 – 2019
Figure 2: Monthly CPI fluctuations 1/2015 – 3/2019
Figure 3: Total disposable income and household expenditure, 2010 – 2017f
Figure 4: Average population and population growth, 2006 -2018
Figure 5: Import and export of goods, 2016 – Q1/2019
Figure 6: Most exported goods, Q1/2019
Figure 7: USD/VND exchange rate, 1/2013 – 3/2019
Figure 8: FDI attraction by sector, Q1/2019
Figure 9: Retail sales of goods in Vietnam, 2010 – Q1/2019
Figure 10: The market share of modern retail in total retail revenue 2014
Figure 11: Consumer confidence index – 2014 – Q3 / 2018
Figure 12: Leather production, 2010 – 2015
Figure 13: Leather consumption, 2010 – 2014
Figure 14: Leather consumption structure by products, 2013
Figure 15: Footwear production structure by region, 2017
Figure 16: Global footwear output, 2011 – 2017
Figure 17: Footwear consumption by type, 2015 – 2018e
Figure 18: Footwear consumption value, 2012 – 2017e
Figure 19: Market share by region (output), 2017
Figure 20: Localization ratio by enterprises and sectors (%)
Figure 21: Total output of some tanned leather products, 2012 – 2018e
Figure 22: Tanned leather imports, 2010 – 2018e
Figure 23: Tanned leather import structure by country, 2018e
Figure 24: Leather exports, 2012 – 2018e
Figure 25: Leather export structure by country, 2018e
Figure 26: Number of enterprises and employees in footwear production, 2010 – 2017
Figure 27: Footwear production revenue, 2010 – 2017
Figure 28: Production output of main products, 2012 – Q1/2019e
Figure 29: Domestic footwear consumption, 2010 – 2016e
Figure 30: Retail sales of footwear, 2012 – 2018e
Figure 31: Sport shoes retail sales, 2012 – 2018e
Figure 32: Sales of some major sport shoes types, 2018e
Figure 33: Consumption structure by value, 2018e
Figure 34: Consumer structure by shoe spending per month, 2013
Figure 35: Footwear consumption structure, 2014
Figure 36: Footwear consumption segments in Vietnam
Figure 37: Footwear exports, 2012 – Q1/2019e
Figure 38: Footwear exports by country, 2017 – Q1/2019e
Figure 39: Contribution structure of enterprises in leather – footwear export, 2012 – Q1/2019e
Figure 40: Footwear imports, 2010 – 2018e
Figure 41: Footwear import structure by country, 2018e
Figure 42: CPI of apparel, headwear and footwear group, 2012 – Q1/2019e
Figure 43: Export price of average shoes, 2014
Figure 44: Inventories, 2012 – 2018e
Figure 45: Export of bags, suitcases, wallets, etc, 2012 – Q1/2019e
Figure 46: Export structure of bags, purses, backpacks, hats … by business sector, 2013 – Q1/2019e
Figure 47: Growth rate of product output (%/year)
Figure 48: Total investment capital in planning period (VND billion)
Figure 49: Compare labor costs in some major footwear producing countries
Figure 50: Net revenue, 2017 – 2018
Figure 51: Gross Profit, 2017 – 2018
Figure 52: Selling expenses, 2017 – 2018
Figure 53: Administrative expenses, 2017 – 2018
Figure 54: Self-financing rate, 2017 – 2018
Figure 55: Fixed assets/Total assets, 2017 – 2018
Figure 56: Total asset turnover, 2017 – 2018
Figure 57: Payables, 2017 – 2018
Figure 58: Days in inventory, 2017 – 2018
Figure 59: Days of sales outstanding, 2017 – 2018
Figure 60: Profit margin, 2017 – 2018
Figure 61: Solvency, 2017 – 2018

List of tables
Table 1: Legal documents related to leather quarantine
Table 2: Sport shoes consumption value, 2015 – 2018e
Table 3: General information about the leather and footwear industry of Vietnam
Table 4: Competitive comparison between Vietnamese and Chinese products
Table 5: Market share of shoes brands in Vietnam, 2014 – 2018
Table 6: Typical shoe export enterprises, 2018
Table 7: Top major importing markets of EU-28, 2012 – 2017
Table 8: Top major importing markets of the US, 2012 – 2017
Table 9: Export value divided by HS code, 2010 – 2018e
Table 10: Production volume
Table 11: 10 enterprises having the highest revenue in the leather and footwear industry 2018