Vietnam’s export turnover from leather products and footwear is estimated to hit US$ 21.5 billion in 2019, a year-on-year rise of 10 percent, said the Vietnam Leather, Footwear and Handbag Association (LEFASO).
The growth is attributed to growing demand for leather products and footwear in Vietnam’s major export markets in the remaining months of the year.
Vietnam’s footwear products have been shipped to more than 100 countries and territories worldwide, with export earnings to half of them raking in more than US$ 1 million each.
Vietnam is currently the world’s second largest footwear exporter and the footwear sector has greatly contributed to the country’s economic development.
LEFASO’s statistics illustrated that leather products and footwear export revenue stood at more than US$ 10.33 billion in the first six months of 2019, including 8.53 billion from footwear and US$ 1.8 billion from handbags.
The US, the European Union (EU), China, Japan and the Republic of Korea were Vietnam’s main export markets in the period.
LEFASO also predicted that Vietnam’s leather product and footwear production will grow by 10-11 percent in 2019.
Truong Thanh Hoai, Director of the Ministry of Industry and Trade’s Heavy Industries Department, said huge opportunities have been opened up for Vietnam’s leather and footwear sector by free trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA).
LEFASO and domestic firms need to handle current bottlenecks in the sector, notably the branding issue, he noted.
