According to statistics from the General Department of Customs, Vietnam's footwear exports in March 2022 reached a turnover of 2.0 billion USD, up 49.4% in turnover compared to February 2022; and a 16.5% increase in turnover compared to March 2021.
Generally, in the first three months of 2022, Vietnam's footwear exports reached 5.29 billion USD, up 10.3% in turnover compared to 2021. That growth rate is high, considering the COVID-19 pandemic is still complicated in Vietnam and many of its export markets.
The export market of the footwear group is quite rich, mainly in the Americas, Europe, and Asia.
In March 2022, Vietnam exported the most footwear to the US market, accounting for 44.3% of Vietnam's total footwear export turnover, followed by the EU market accounting for 23.2%. Footwear exports to the two markets above increased in March 2022 compared to March 2021, of which exports to the US market increased by 22.3%, and the EU increased by 27.4%.
Footwear exports to markets increased sharply in March 2022. Therefore, in the first 3 months of 2022, the export of this item to many markets increased at double-digit rates such as the US increased by 17.5%, the EU increased by 18.7%, Canada increased by 26.3%, UAE increased by 35.6%, India up 34.4%, etc.
Footwear export turnover of foreign-invested enterprises currently accounts for 78.8% of the total export turnover of the entire footwear industry in Vietnam. The footwear industry attracts foreign businesses thanks to the advantage of a large labor force and low labor costs compared to other countries in the region.
Though the leather and footwear industry in Vietnam accounts for only 0.4% of total enterprises, 0.8% of production and business capital, and 1% of the total value of fixed assets and long-term investments, it accounts for a higher proportion of revenue (1.6%), and profit before tax (1.8%). The development of the leather and footwear industry has created many jobs for workers. Over the past time, businesses in the industry have also taken advantage of expanding to markets where Vietnam has signed a free trade agreement.
Vietnam has been vaccinated against Covid-19 at a high level, so export activities in general and footwear exports, in particular, have added support to export growth. The leather and footwear industry expects to reach the export milestone of 20 billion USD in 2022, up 12.7% compared to 2021.
The US has been the largest importer of Vietnamese footwear in recent years. In addition, the EU market is also full of potential to exploit, especially taking advantage of the advantages of the EVFTA Agreement.
For the EU market, the EVFTA, which took effect on August 1, 2020, is considered the biggest driving force for the growth of the footwear industry in recent years. Footwear is one of the items on the list of export products of Vietnam with positive changes in export.
After the EVFTA Agreement officially took effect, Vietnam's footwear exports to the EU market gradually recovered. Vietnamese footwear is enjoying an advantage over competing countries such as China, Myanmar, India, and Cambodia.
In addition to the traditional advantages of labor, political environment, and participation in bilateral and multilateral FTAs, efficient disease control is expected to help Vietnamese businesses receive goods shipped from other countries.
Compiled by VietnamCredit