Vietnamplus

With 80 percent of workers returning to work in factories and abundant orders right from the beginning of the year, the footwear sector has seen bright prospects for this year.

Vietnam's leather and footwear industry was on course for a strong recovery as more international fashion brands were valuing the country as an important part of the global supply chain, according to the Vietnam Leather, Footwear and Handbag Association (LEFASO).

The leather and footwear industry is finding new supply and demand sources to overcome difficulties due to the impact of the COVID-19 pandemic.

A joint statement on a cooperation initiative to address COVID-19 impacts on workers and businesses of the textile-garment and leather- footwear-handbag industries in Vietnam was signed in Hanoi on June 22.

The footwear and handbag industry aims to reach export revenue of 24 billion USD in 2020, after hitting 22 billion USD last year, the industry association said.

The Council for the Development of Cambodia (CDC) recently approved three investment projects in the handbag and garment sector with a total capital investment of 8.8 million USD, according to the Phnom Penh Post. ​

Vietnam’s leather, footwear and handbags were lauded to be comparable to those made in China, Pakistan, India, Singapore, Indonesia and South Africa during an international fair held in Melbourne city, Victoria state of Australia from November 12 – 14.

It is necessary to carefully consider reducing labourers’ working hours from 48 to 44hours per week to ensure the interests of enterprises, said Phan Thi Thanh Xuan, Vice President and Secretary General of the Vietnam Leather, Footwear and Handbag Association.

Vietnam’s export turnover from footwear products and handbags reached nearly 14.5 billion USD in the first eight months of 2019, according to the Vietnam Leather, Footwear and Handbag Association (LEFASO).

Vietnam’s export turnover from leather products and footwear is estimated to hit 21.5 billion USD in 2019, a year-on-year rise of 10 percent, said the Vietnam Leather, Footwear and Handbag Association (LEFASO).

Vietnamese exporters, especially newcomers, must observe export regulations set by the European Union (EU).

The footwear sector has optimised opportunities from free trade agreements (FTAs) that Vietnam has signed to increase exports, according to insiders.

As leather – footwear is an export-oriented industry, vagaries in such markets as the US and the EU will have considerable impact on the purchasing power and export of these products.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) officially came into force in Vietnam on January 14, promising to open up opportunities for many industries to boost exports, but also posing challenges for businesses which require them to devise long-term strategies to increase their competitiveness in the global market.

Exports of footwear, suitcases and bags of all kinds are estimated at 19.5 billion USD in 2018, according to the Vietnam Leather, Footwear and Handbag Association (LEFASO).

Vietnam’s key commodities, including apparel, leather, and footwear, are forecast to be hurt by the US-China trade war, which began on July 6 when the US imposed new tariffs on a majority of Chinese imports into the country, worth nearly 34 billion USD.

According to the Vietnam Leather, Footwear and Handbag Association (Lefaso), the country’s leather industry is enjoying good chances to benefit from the shift of orders from China as a result of the tendency of moving to the production of high-tech goods.

A visiting delegation of 30 executives from Indian leather companies have met with their Vietnamese counterparts in HCM City.

Footwear enterprises from the Republic of Korea (RoK) are operating effectively in Vietnam and their investment flows to the country are expected to increase strongly once the EVFTA is signed.

Global footwear brands like Adidas, Nike and Puma are increasingly turning to Vietnam for their manufacturing needs due to its affordable labour costs and free trade agreements.