AsemconnectVietnam - Vietnam’s footwear manufacturing industry remains strong but saw a decline in January 2025 compared to the previous month. According to Vietnam’s Industrial Production Index, output in January was 86.9% higher than 2019 levels, but this was lower than December 2024, when production stood 117.6% above 2019 levels.

On a month-on-month basis, footwear production dropped 12.1% in January compared to December. However, the sector still recorded a 10.3% year-on-year increase from January 2024, indicating steady growth over the past year.
Key Role in Vietnam’s Economy
Footwear manufacturing is a major industry in Vietnam, contributing significantly to exports and domestic sales. The country is one of the world’s largest footwear producers, supplying international brands while also meeting local demand.
Major Industry Players & Production
Vietnam manufactures a wide range of footwear, including:
• Sports shoes, leather shoes, sandals, and fashion footwear
• Products for major global brands like Nike, Adidas, Puma, and Converse
Thanks to skilled labor, competitive wages, and strong supply chains, Vietnam’s factories produce millions of pairs of shoes annually, with exports reaching North America, Europe, and Asia.
Challenges & Future Trends
Despite its growth, the industry faces key challenges:
• Rising labor costs
• Environmental concerns related to leather and synthetic materials
• Competition from other low-cost manufacturing countries
• Growing demand for sustainable and eco-friendly production
Vietnam’s strong supply chain and manufacturing expertise continue to give it a competitive edge. However, adapting to sustainability trends and overcoming rising costs will be key to maintaining its position as a global footwear manufacturing leader.
Vietnamese Footwear Industry Embraces Green Standards for Global Competitiveness
Vietnamese footwear companies are being urged to adopt green standards to enhance their brand value and competitiveness in the global market. As sustainability becomes a key requirement in international trade, firms must integrate eco-friendly practices to maintain export growth and secure their place in the global supply chain.
Industry Shift Toward Green Manufacturing
• TBS Group Chairman Nguyễn Đức Thuấn highlighted the industry's growth opportunities, stressing the need for sustainability.
• Catlongs Co., Ltd. has already taken steps toward green exports, using recycled materials like soles made from rice husks and peanut shells for European markets.
• The industry faces significant pressure due to its traditionally high environmental impact, requiring companies to implement automated production lines, AI, and green development to remain competitive.
Global Market Challenges & Sustainability Standards
• Major importers, like the EU and US, demand sustainable production, transparency, and full traceability across supply chains.
• The EU now requires sustainable designs, increasing compliance costs but opening new market opportunities.
• Vice Chairwoman of Lefaso, Phan Thị Thanh Xuân, emphasized that green production is no longer optional for Vietnamese firms seeking to maintain export turnover growth.
Future Targets & Industry Goals
• 2025 Export Target: $29 billion, a 10% year-on-year increase.
• 2030 Projection: $38-40 billion in total export value for footwear and handbags.
• By 2035, Vietnam aims to:
o Develop a complete domestic production value chain.
o Participate effectively in the global supply chain.
o Build regional and world-class brands.
Key Solutions for Sustainable Growth
1. Supply Chain Transparency – Companies must ensure traceability of raw materials from sourcing to final production.
2. Localization of Raw Materials – Increasing local production of sustainable materials can reduce dependency on imports and meet strict origin regulations in major export markets.
3. Circular Economy Approach – Implementing recycling, waste reduction, and eco-friendly production processes.
4. Raw Material Trading Center – Vietnam should establish a centralized market to support domestic suppliers and enhance supply chain resilience.
Vietnam’s Global Footwear Standing
• 3rd largest footwear producer globally (after China and India).
• 2nd largest footwear exporter (after China).
• Contributes 8% of Vietnam’s GDP.
• 2024 export revenue:
o $27 billion total, up 11.5% YoY.
o $23.2 billion from footwear (+13.2% YoY).
o $3.8 billion from bags and suitcases (+9.7% YoY).
Vietnamese footwear companies must accelerate their transition to green production to sustain growth, comply with global standards, and maintain their competitive edge in the international market.
The 25th International Shoes & Leather Exhibition - Vietnam (Shoes & Leather - Vietnam 2025)
The 25th International Shoes & Leather Exhibition - Vietnam (Shoes & Leather - Vietnam 2025) is going to be held from 09-11 July 2025 at the SECC Saigon Exhibition & Convention Center, Ho Chi Minh City. It is organized by Top Repute Co. Ltd.,.
"Shoes & Leather Vietnam" is expected to have 800+ exhibitors and 15000+ professional visitors. It will include advanced shoe-making machines, cutting solution, leather, synthetic leather, materials, sewing technology, automation, chemical, garment, 3D printing, components and many more. The event will also exhibit the latest finished products such as footwear, leather products, bags and a lot more.
T.Huong
Source: Vitic