Assessing the Footwear Industry in Vietnam

Mar 6,2023 | Apparel

Footwear refers to garments worn on the feet, which originally serves to purpose of protection against adversities of the environment, usually regarding ground textures and temperature. As one of the world’s leading footwear manufacturers, Vietnam ranks second in the world in terms of leather and footwear exports after China.

Vietnam exports more than 1 billion pairs of footwear of all kinds of to hundreds of countries around the world every year. In particular, Vietnam’s footwear exports to the EU account for the largest proportion of the total exports. By the end of 2021, there are about 2,200 enterprises producing footwear in Vietnam, mainly concentrated in the area around Ho Chi Minh City.

The 2 giant brands in the global footwear industry, Nike and Adidas, have chosen Vietnam as their main production base. Part of the global footwear chain is gradually shifting from China to Vietnam due to its lower costs. Nike has more than 100 suppliers in Vietnam, with 96 factories concentrated in the southern region.

Nike’s arch rival, Adidas, has also chosen Vietnam as its main production area. In its annual report (2020), Adidas suggested that in 2019, 98% of Adidas’ footwear products were produced in the Asian region. Vietnam has become the largest sourcing country for Adidas, accounting for about 40% of its total footwear production in 2021.

Due to the impact of COVID-19, Vietnam’s footwear exports was US$16.75 billion in 2020, decreased 8.6% YOY. In 2021, Vietnam’s footwear products were exported to more than 100 countries, with about US$17.8 billion in footwear production. In 2021, Vietnam’s footwear exports have seen a resurgence in growth.

Vietnam has signed trade agreements for exports with Europe and the United States. For example, in the EU-Vietnam Free Trade Agreement (EVFTA), Vietnam’s footwear exports to the EU amount to about 40%. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has helped Vietnam’s footwear exports to Canada and Mexico soar.

Vietnam has signed many agreements with developed countries that are conducive to promoting exports, but the strength of Vietnam’s local footwear enterprises remains weak and the major market share of Vietnam’s footwear industry is occupied by foreign companies. Vietnam’s footwear production and exports are expected to continue to grow in 2022-2031. For companies related to the international footwear industry chain, there are many investment opportunities in Vietnam’s market in the coming years.

According to the exhaustive market analysis offered by Bharatbook under the Consumer Goods – Apparel categories, the Research Report on the Footwear Industry in Vietnam provides top-line qualitative and quantitative information about the market size. The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the market. Besides it also includes segmentation data, textual and graphical analysis of market growth trends and leading companies.

For more insights on the market, please visit Research Report on the Footwear Industry in Vietnam