FDI FIRMS TAKE LION’S SHARE OF FOOTWEAR EXPORTS

Workers assemble footwear on a production line at a Nike shoe factory in southern Vietnam - PHOTO: ARCHIVES

HCMC – Foreign-invested enterprises accounted for about 80% of footwear export revenue in 2025, as total shipments reached nearly US$29 billion, according to industry data.

Export revenue of the footwear sector rose about 5% from a year earlier, data from the Vietnam Leather, Footwear and Handbag Association (Lefaso) showed.

Vietnam remained the world’s third-largest footwear producer and the second-largest exporter globally. The industry has around 3,000 companies and employs nearly 1.5 million workers, with annual output of 1.3–1.4 billion pairs of shoes.

Foreign-invested firms generated US$22.82 billion in export revenue, up 17% from 2024. Domestic companies earned US$5.84 billion, marking a 29% year-on-year increase.

The United States was the largest export market, with shipments exceeding US$11 billion. The European Union followed with nearly US$6.88 billion. China imported US$1.78 billion worth of footwear, Japan US$1.61 billion, and South Korea US$776 million.

Within the EU, the Netherlands led imports at about US$2.11 billion, followed by Belgium, Germany, and France.

In the CPTPP bloc, Japan was the largest importer of Vietnamese footwear, followed by Canada at US$816 million, Mexico at US$737 million, and Australia at US$537 million.

Lefaso noted that the sector remains heavily dependent on imported materials such as leather, chemicals, soles, and accessories, leaving production costs sensitive to changes in input prices and logistics costs.

Stricter requirements from importing markets on origin, traceability, and material standards are also increasing pressure on supply chains and affecting costs, order fulfillment, and profit margins.

The domestic footwear market was estimated at about US$1.05 billion, with annual consumption of around 155 million pairs.

Domestic products accounted for about 40% of local market share, while imports from China made up nearly 30%, with the remainder supplied by other countries.

To support sustainable development, Lefaso called for a clearer long-term policy framework and measures to help firms move beyond contract manufacturing and integrate more deeply into global value chains.

Workers assemble footwear on a production line at a Nike shoe factory in southern Vietnam.

Source: The Saigon Times