Footwear industry breaks out in difficulties

​In the last months of the year, the world economy faced difficulties, greatly affecting Vietnam's goods trade with other countries. However, Dong Nai's footwear export still made a breakthrough and maintained a growth rate of more than 1.5 times compared to the same period last year.

Production of footwear for export at CASUM SHOES JOINT - STOCK COMPANY (Bien Hoa City)

Footwear export turnover in 10 months of 2022 is more than USD 4.35 billion. This is the item with the largest export value among more than 50 main export items of the province.

 *Vietnam's big footwear manufacturer

 With an output of more than 1 billion pairs/year, Vietnam has become the second largest footwear exporter in the world (after China). In which, Dong Nai is one of the three leading provinces in the country in manufacturing all kinds of footwear and accounts for more than 26% of the total export turnover of this item in Vietnam. About 3 months ago, orders for the footwear industry tended to decrease due to the influence of the global economic slowdown and inflation. However, in Dong Nai, footwear enterprises still kept production and exports increased quite well.

 
Le Quoc Thanh, CEO of the Vietnam region of Phong Thai Group, said: “The Covid-19 epidemic, the fight between Russia and Ukraine has greatly affected the world's footwear industry. However, Vietnam promptly controlled the epidemic, so businesses recovered quickly. Currently, the factories of Phong Thai Group in Dong Nai operate quite stably and do not worry about lack of orders. Phong Thai Group currently has many factories specializing in manufacturing shoes for famous brands in the world located in Xuan Loc district, Trang Bom district.

Dong Nai is home to many large domestic and foreign corporations investing in the field of footwear for export such as: Chang Shin, Taewang, Pou Chen, Hwasung, Bitís... Most of the above corporations produce according to orders of famous shoe brands in the world such as: Adidas, Nike, Reebok, New Balance, Vans, Puma...

According to famous footwear brands in the world, there are many footwear factories in the province that are invested with modern technology and skilled workers so they can fulfill difficult and large orders in a short time. Therefore, the brands have transferred many large and important orders to factories in Dong Nai for production and export to more than 70 countries and territories around the world.

 According to Ms. Vu Thi Huong Giang, External Affairs Director for Vietnam, Thailand and Cambodia, Nike Vietnam Co., Ltd., Dong Nai is home to many Nike footwear factories. Factories in the province can meet many large orders of brands. Therefore, over the past time, many Nike orders have moved from abroad to factories in Dong Nai.

 *Manufacturing more than half a billion pairs of shoes

 In 2022, Dong Nai is expected to produce more than 529 million pairs of footwear and mainly export it, earning over USD 5.1 billion. This is a new record in footwear production and export of Dong Nai. At the same time, footwear is also the industry that will have the largest trade surplus in the province. In the 10 months of 2022 alone, footwear trade surplus was nearly USD 3.7 billion and the whole year is likely to reach about USD 4.5 billion.

 Ms. Lai Khiem, General Director of Binh Tien Bien Hoa Co., Ltd (Bitis) in Amata Industrial Park (Bien Hoa City) shared: “Footwear production in the end of 2022, continues to face many difficulties due to the impact of the Covid-19 epidemic, which disrupts the supply of raw materials from abroad, affecting production. However, Bitis has actively found more partners to supply raw materials and expanded output to continue recovering production and business. Therefore, Bitis still retains the domestic market and expands to export to many countries"

 According to the Vietnam Leather, Footwear, and Handbag Association, Vietnam's footwear production and exports are expected to continue to grow in 2022 and the coming years. It is estimated that by 2031, Vietnam's footwear market will reach over USD 38 billion, twice as high as today. Over the past 2 years, many footwear factories from China and some other countries have moved to Vietnam.

 Some international footwear brands said that in the near future, they will expand production in Vietnam because of many favorable factors such as: a highly skilled young workforce, factories gradually innovate technology to meet environmental standards, political stability and policies are constantly being renewed in the direction of creating openness for foreign investors.​