Footwear exports likely to grow 5 percent in 2021

Vietnam’s footwear exports are likely to grow 5 percent this year although COVID-19-induced supply chain disruptions caused decreases in August and September, according to Phan Thi Thanh Xuan, Secretary-General of the Vietnam Leather, Footwear and Handbag Association (Lefaso).

Weakening shipments and southern industrial parks devastatingly stricken by COVID-19 in August and September have troubled industry players who were worried that the sector was not likely to achieve its 18-billion-USD export goal in 2021.

However, just two months after southern cities and provinces reopened its economy with flexible measures to sustain production and keep the virus at bay, the billions-dollar industry has seen unexpected breakthroughs, said Xuan, adding that exports will rise 5 percent compare to the previous year.

Vietnam’s accession to multiple free trade agreements (FTAs), particularly the Comprehensive and Progressive for Trans-Pacific Partnership (CPTPP), have channeled large FDI from major corporations from the Republic of Korea, China and others into Vietnam, constantly heightening the domestic production capacity.

Data from the World Footwear Yearbook shows that Vietnam exported 1.23 billion pairs of footwear in 2020, a 4.4-fold increase against 2011. It also marked the first time the country’s global market share had exceeded 10 percent.

Between 2016 – 2020, Vietnam’s footwear exports picked up 6.4 percent annually on average, with its revenue edging up from 10.3 percent in 2016 to 13.6 percent of the world's total in 2020.

Various world-famous brands, including Nike, Adidas, Reebok, and Puma, have selected Vietnam as a destination for outsourcing and setting production bases.

Deputy General Director of Golden Victory Co., Ltd., Le Thi Anh Dao said Vietnamese manufacturers has quite clear competitive edges over regional rivals in securing orders from brands. “Previously, many brands such as Nike have mainly placed outsourcing orders in China but now they are more likely to turn to Vietnam as global consumers are increasingly in favour of “Made-in-Vietnam” products,” Dao said.

According to Lefaso, Vietnam became the world’s biggest exporter of textile-capped shoes in 2020, accounting for 26.3 percent of total global shipments which has been on the rise this year./.