Vietnam’s footwear and leather industry is on track to reach an impressive US $ 26-27 billion in exports in 2024, representing a US $ 3 billion increase from the previous year. This surge is largely attributed to the country’s strategic leverage of signed free trade agreements, according to the Vietnam Leather, Footwear and Handbag Association (Lefaso).
Phan Thi Thanh Xuan, Vice Chairwoman and General Secretary of Lefaso, emphasised Vietnam’s position as the world’s third-largest footwear producer, following China and India, and the second-largest exporter. Notably, North America is the leading export destination, accounting for 41.4 per cent of footwear exports and 47 per cent of handbag exports. The European Union follows closely, representing 29.5 per cent of footwear exports and 25.4 per cent of handbags.
Key markets for Vietnamese footwear and leather products include the United States, China, Japan, Belgium, the Netherlands, the UK, South Korea, Canada, France, Spain, Italy, and Australia, which collectively contribute to over 88.4 per cent of the total export turnover.
The industry has demonstrated a robust recovery since late 2023, with major firms securing contracts that extend through mid-2025. Experts suggest that enhancing the domestic supporting industry and improving raw material production will be crucial to maximizing the benefits of existing free trade agreements.
In response to this growth, Lefaso has proposed the establishment of specialised industrial zones focused on leather tanning, technical fabric production, and mold components, all while prioritizing environmental protection.
Moreover, Vietnam is rapidly emerging as a significant competitor to Bangladesh in the global footwear market, further solidifying its status as a rising powerhouse in the industry.
