Philip Webster, for @PublicationsEdm, commented a ResearchAndMarkets.com document indicating that Nike and Adidas are leading a transfer from China to Vietnam for shoe production, confirming a trend that has been observed in the data and analysis that Shoe Intelligence has collected in recent years. [Research Report on Footwear Industry in Vietnam, 2022-2031 – marketresearch.com]
The document called “Research Report on the Footwear Industry in Vietnam, 2022-2031” points out that Vietnam ranks second in the world in terms of leather and footwear exports after China.
”According to the analyst’s analysis, two giant brands in the global footwear industry, Nike and Adidas, have chosen Vietnam as their main production base. Part of the global footwear chain is gradually shifting from China to Vietnam due to its lower costs. Nike has more than 100 suppliers in Vietnam, with 96 factories concentrated in the southern region,” ResearchAndMarkets said in presentation of the report.
”Nike’s arch rival, Adidas, has also chosen Vietnam as its main production area. In its annual report (2020), Adidas suggested that in 2019, 98 percent of Adidas’ footwear products were produced in the Asian region. Vietnam has become the largest sourcing country for Adidas, accounting for about 40 percent of its total footwear production in 2021,” it added.
Vietnam exports worldwide more than 1 billion pairs of all kinds of footwear every year. At the end of 2021, there are about 2,200 enterprises manufacturing footwear in Vietnam, mainly concentrated in the area around Ho Chi Minh City, it said.
”There is a more important basis for the bullishness of Vietnam’s footwear exports, that is, Vietnam has signed trade agreements helpful for exports with Europe and the United States,” commented the market research company.
Thanks to the European Union-Vietnam Free Trade Agreement (EVFTA), Vietnam’s footwear exports to the EU amount to about 40 percent of the Asian’s total foreign shipments. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has also helped Vietnam’s footwear exports to Canada and Mexico soar, it noted.
”Vietnam has signed many agreements with developed countries that are conducive to promoting exports, but the strength of Vietnam’s local footwear enterprises remains weak and the major market share of Vietnam’s footwear industry is occupied by foreign companies,” ResearchAndMarkets explained.
”According to the analysis, Vietnam’s footwear production and exports are expected to continue to grow in 2022-2031. For companies related to the international footwear industry chain, there are many investment opportunities in Vietnam’s market in the coming years,” it added.
Separate official Vietnamese data showed that in the first seven months of 2022, Vietnamese exports of leather, footwear and leather goods totaled more than $14 billion, up by 13 percent year-over-year, in line with the forecast made at the start of the year by the Vietnamese leather, footwear and handbag association, Lefaso.
Lefaso expects Vietnam’s exports of leather, footwear and bags to increase by 10-15 percent in 2022 to $23-25 billion. In 2021, Vietnamese exports of leather, footwear and handbags increased by 4.6 percent to $20.78 billion, with footwear exports alone growing by 6.1 percent to $17.77 billion.
According to the World Footwear 2022 Yearbook released by the Portuguese footwear association Apiccaps, Vietnam was the world’s second largest footwear exporter, in volume, with a market share of 9.9 percent. China was the world leader, with a 60.4 percent share.
Apiccaps also noted that China was the world’s largest footwear producer with 54.1 percent of the total, but its share of the global production continues to slowly decrease in favor of other Asian countries, especially Vietnam.