Despite the difficulties caused by the Covid-19 pandemic, Vietnam’s exports of leather and footwear still achieved a double-digit growth, and many enterprises in the industry have received long-term orders. In the first 8 months of 2021, Vietnam's footwear exports are estimated at 12.65 billion USD, up 16.2% over the same period in 2020.
After a period of struggling to maintain operations due to the negative impact of the Covid-19 epidemic, many leather and footwear businesses have now found a way to boost production, many of which even receive a lot of orders.
According to statistics from the General Department of Customs, Vietnam's footwear exports in July 2021 reached 1.372 billion USD, down 29.6% compared to June 2021, but up 1.6% compared to July 2020. In general, in the first 7 months of the year, exports of this commodity reached 11.616 billion USD, up 23.9% over the same period in 2020.
Vietnam’s export turnover of footwear is the 5th largest (following phones, computers, machinery, and textiles) and accounts for 6.4% of the country's total export turnover in the first 7 months of the year.
In addition, Vietnam’s footwear products are present in almost every market from Asia to Europe and America.
In July 2021, most of Vietnam’s footwear products were exported to the US market, accounting for 44.4% of Vietnam's total export turnover, followed by the EU market which accounted for 23.1%. Footwear exports to these two markets both increased sharply compared to the same period in 2020. In particular, exports to the US market increased by 23% and the EU decreased by 4.8%.
Generally, in the first 7 months of 2021, exports of this item to many markets increased at double-digit rates: to the US increased by 38.5%; to EU increased by 25.1%; to the UK by 27.0%; Australia by 54.2%; and Canada by 16.9%.
Vietnam has emerged as a major economic partner in the global supply chain of the US, and it is also a supplier of over 20% of the total footwear products to the this market.
The decline in the export of this item has raised concerns that the footwear supply chain to the US market will be broken.
Due to such concern, on August 13, 2021, 90 CEOs of leading brands in the US including Adidas, Coach, Gap, Hanebrands, Nike, VF, and Under Amour signed a pettition to US President Joe Biden to speed up Covid-19 vaccine aid to Vietnam because Vietnam is currently an important US goods supplier.
Vietnam is now the second largest supplier of footwear to the US market, furthermore, Vietnam has also become an important supplier of essential input products for the footwear manufacturing industry of America.
The leather and footwear industry is one of the industries making the best use of Free Trade Agreements. Exports of leather, shoes and handbags are expected to grow by 15-20% in 2021 in the pandemic is under good control.
Source: Ministry of Industry and Trade
Compiled by VietnamCredit
