In 2024, leather and footwear exports reach a target with over 26 billion USD
Monday, December 23,2024
AsemconnectVietnam - In 2024, leather and footwear industry reach a target with over 26 billion USD in export turnover, an increase of 10% compared to 2023. Many brands prioritize choosing Vietnam as a production base.
Footwear industry exports reach over 26 billion USD
In an interview with a reporter of Cong Thuong Newspaper, Ms. Phan Thi Thanh Xuan - Vice President and General Secretary of Vietnam Leather, Footwear and Handbag Association said that in 2024, footwear industry's export reach over 26 billion USD, an increase of about 10% compared to 2023. From now until end of the year, orders will continue to be stable, notably, a number of large enterprises have signed contracts until mid-2025.
Export markets in 2024 will all grow. Some large markets such as the US and EU have maintained an increase of over 10%. Notably, this year, China continues to be ranked in group of billion-dollar export markets of the industry, second only to the US and EU and accounting for 9% of proportion. However, in some export markets, exports are still decreasing, even almost non-existent due to the impact of conflicts such as Russia and Uzbekistan.
According to leader of Vietnam Leather, Footwear and Handbag Association, in 2024 leather and footwear industry expanded its exports to a number of markets in South America and the Middle East. In particular, the Middle East market is a very potential market with large and diverse consumer demand.
In particular, sports shoes - a strong product of Vietnam, dominate, this item can also help the industry's exports grow rapidly and strongly to the Middle East in the short term. In addition, this market also consumes sandals, but the quantity is not large.
Although there are not too many difficulties in terms of orders, Ms. Xuan said that in 2024, the unit price is low, even forced to decrease. At the same time, orders are tending to require higher quality and meet criteria of sustainable development, creating additional compliance costs for businesses. Moreover, high input costs, scarce labor resources, all of these difficulties have affected production and business efficiency of businesses.
Sharing about these difficulties, Mr. Nguyen Thanh Tuan - General Director of VASA Shoe Company, said that 2024 is a really difficult year for the economy in general, and for footwear enterprises in particular. As a small-scale enterprise, VASA's difficulties are doubled. "This year, the enterprise only achieved 30-40% of export plan built from the beginning of the year. To make up for shortfall, the enterprise is forced to boost domestic consumption," Mr. Tuan informed.
What are the challenges for 2025?
Regarding 2025 plan, VASA still focuses on exporting to available and easy-going markets such as Africa and Asia to gain suitable customer bases and increase revenue, then gradually apply higher standards such as green production and green products to conquer demanding markets such as Japan, Europe, and the US.
The enterprise has also initially approached large e-commerce sites such as Alibaba and Amazon to open more consumption channels. “We consider this a potential direction in the future and will continue to invest resources and human resources to get orders from these e-commerce platforms,” Mr. Tuan informed. He also said that this year, although production and business have many difficulties, businesses are still trying to ensure income and have a 13th month salary bonus for the Lunar New Year of At Ty 2025 for employees. So that when the market warms up again, businesses will have available resources to catch up with production.
From an industry perspective, Ms. Xuan said that the market context in 2025 has not changed much compared to 2024. Orders are not too difficult but businesses have to face high costs. “In 2025, the leather and footwear industry still sets a target of 10% export growth compared to 2024, reaching a turnover of about 29 billion USD,” Ms. Xuan emphasized.
Achieving this goal depends on many factors, of which consumer demand and compliance with green standards from import markets are two particularly important factors. Therefore, leather and footwear enterprises hope to receive more active support from state management agencies and international organizations to meet requirements. In particular, functional agencies coordinate with international organizations to research and develop unified green standards, and at the same time build harmonious support policies for enterprises to take advantage of. At the same time, there needs to be solutions to improve the internal capacity of enterprises. After establishing unified standards, functional units support training and coaching to apply the standards, helping enterprises to achieve certificates and be qualified to implement orders.
In addition, resources to help businesses innovate science and technology are also very necessary. Businesses want Ministry of Industry and Trade to advise and propose to the Government to establish funds to promote green development, creating conditions to reduce loan interest rates to help businesses have opportunity to apply new technology, green technology in production.
Finally, issues of information, through conferences, seminars, forums ... the State agencies coordinate with industry associations to quickly and accurately update information on green regulations, green standards of import markets to help businesses receive timely information, thereby preparing plans for the development process.
Source: Vitic/ congthuong.vn
In an interview with a reporter of Cong Thuong Newspaper, Ms. Phan Thi Thanh Xuan - Vice President and General Secretary of Vietnam Leather, Footwear and Handbag Association said that in 2024, footwear industry's export reach over 26 billion USD, an increase of about 10% compared to 2023. From now until end of the year, orders will continue to be stable, notably, a number of large enterprises have signed contracts until mid-2025.
Export markets in 2024 will all grow. Some large markets such as the US and EU have maintained an increase of over 10%. Notably, this year, China continues to be ranked in group of billion-dollar export markets of the industry, second only to the US and EU and accounting for 9% of proportion. However, in some export markets, exports are still decreasing, even almost non-existent due to the impact of conflicts such as Russia and Uzbekistan.
According to leader of Vietnam Leather, Footwear and Handbag Association, in 2024 leather and footwear industry expanded its exports to a number of markets in South America and the Middle East. In particular, the Middle East market is a very potential market with large and diverse consumer demand.
In particular, sports shoes - a strong product of Vietnam, dominate, this item can also help the industry's exports grow rapidly and strongly to the Middle East in the short term. In addition, this market also consumes sandals, but the quantity is not large.
Although there are not too many difficulties in terms of orders, Ms. Xuan said that in 2024, the unit price is low, even forced to decrease. At the same time, orders are tending to require higher quality and meet criteria of sustainable development, creating additional compliance costs for businesses. Moreover, high input costs, scarce labor resources, all of these difficulties have affected production and business efficiency of businesses.
Sharing about these difficulties, Mr. Nguyen Thanh Tuan - General Director of VASA Shoe Company, said that 2024 is a really difficult year for the economy in general, and for footwear enterprises in particular. As a small-scale enterprise, VASA's difficulties are doubled. "This year, the enterprise only achieved 30-40% of export plan built from the beginning of the year. To make up for shortfall, the enterprise is forced to boost domestic consumption," Mr. Tuan informed.
What are the challenges for 2025?
Regarding 2025 plan, VASA still focuses on exporting to available and easy-going markets such as Africa and Asia to gain suitable customer bases and increase revenue, then gradually apply higher standards such as green production and green products to conquer demanding markets such as Japan, Europe, and the US.
The enterprise has also initially approached large e-commerce sites such as Alibaba and Amazon to open more consumption channels. “We consider this a potential direction in the future and will continue to invest resources and human resources to get orders from these e-commerce platforms,” Mr. Tuan informed. He also said that this year, although production and business have many difficulties, businesses are still trying to ensure income and have a 13th month salary bonus for the Lunar New Year of At Ty 2025 for employees. So that when the market warms up again, businesses will have available resources to catch up with production.
From an industry perspective, Ms. Xuan said that the market context in 2025 has not changed much compared to 2024. Orders are not too difficult but businesses have to face high costs. “In 2025, the leather and footwear industry still sets a target of 10% export growth compared to 2024, reaching a turnover of about 29 billion USD,” Ms. Xuan emphasized.
Achieving this goal depends on many factors, of which consumer demand and compliance with green standards from import markets are two particularly important factors. Therefore, leather and footwear enterprises hope to receive more active support from state management agencies and international organizations to meet requirements. In particular, functional agencies coordinate with international organizations to research and develop unified green standards, and at the same time build harmonious support policies for enterprises to take advantage of. At the same time, there needs to be solutions to improve the internal capacity of enterprises. After establishing unified standards, functional units support training and coaching to apply the standards, helping enterprises to achieve certificates and be qualified to implement orders.
In addition, resources to help businesses innovate science and technology are also very necessary. Businesses want Ministry of Industry and Trade to advise and propose to the Government to establish funds to promote green development, creating conditions to reduce loan interest rates to help businesses have opportunity to apply new technology, green technology in production.
Finally, issues of information, through conferences, seminars, forums ... the State agencies coordinate with industry associations to quickly and accurately update information on green regulations, green standards of import markets to help businesses receive timely information, thereby preparing plans for the development process.
Source: Vitic/ congthuong.vn
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