Vietnam’s exports of leather, footwear and bags this year are expected to increase by 10-15 percent in 2022 to $23-25 billion, according to the Vietnamese leather, footwear and handbag association, Lefaso.
In 2021, Vietnamese exports of leather, footwear and handbags increased by 4.6 percent to $20.78 billion, with footwear exports growing by 6.1 percent to $17.77 billion.
The U.S. remained the largest buyer of Vietnamese leather, footwear and bag products with imports of $8.76 billion, up by 15.8 percent, followed by China, down by 22.3 percent to $1.72 billion. Japan ranked third with over $1 billion, down by 10.1 percent.
Lefaso noted that the fourth wave of Covid-19 and government-imposed restrictions caused difficulties for 80 percent of the sector’s businesses, especially those in the south of the country, which accounted for 70 percent of output in value and volume. Companies had to stop or reduce production, resulting in the loss of foreign orders, it pointed out.
The industry has also been hit by a shortage in containers, a surge in logistics and shipping costs as well as an increase in the prices of fuel and raw material.
The situation improved from October, as the pandemic receded in Ho Chi Minh City and other southern provinces, boosting exports in the last months of 2021, according to the association. Lefaso added that it will continue to work with the country’s authorities to help businesses accelerate production and exports.
According to the latest data released by Vietnam’s General Statistics Office, the country exported $1.93 billion worth of footwear in January 2022.
Lefaso’s deputy chairwoman, Phan Thi Thanh Xuan, stated that Vietnam has become the largest manufacturing hub for Nike by producing half of its footwear. The U.S. brand accounts for about 30 percent of the export revenues of the sector and plans to increase production in the country, where it has already contributed to creating 300,000 jobs, she added.
