With a double-digit growth rate, Vietnam continues to be a destination for the world’s leading footwear brands. “Made in Vietnam” footwear has been exported to more than 100 countries, with the EU and the US markets accounting for over 60 per cent of the total export value of this commodity group.
An important destination
At a meeting with Deputy Prime Minister Vuong Dinh Hue in June this year, Chris Helzer, vice chairman of US-based Nike Inc., said in 2020 Nike will celebrate 25 years of operation in Vietnam, affirming that this is the most important market of Nike in production and export with up to 50 per cent of Nike products worldwide being manufactured in the country.
Nike also highly values the quality of the Vietnamese workforce which has contributed to the success of the world’s leading sportswear manufacturer.
Last year, Kasper Rorsted, CEO of Adidas, told shareholders that factories in Vietnam turned out 44 per cent of the total number of footwear of Adidas in 2017, up from 31 per cent in 2012, while Chinese suppliers accounted for 19 per cent, down from over 30 per cent in 2012.
Apart from Nike and Adidas, many other well-known footwear and sportswear brands in the world have boosted their subcontracting and production activities in Vietnam, which help spur domestic footwear development and earn foreign currencies from footwear exports. Vietnamese footwear products have been exported to over 100 countries, securing the second position in the world in terms of footwear export.
According to the General Department of Vietnam Customs, footwear exports in the first nine months of 2019 reached $13.25 billion, up 12.9 per cent on-year.
The EU and the US continued to be the two major import markets, with respective sales increases of $3.64 billion (up 7.8 per cent) and $4.87 billion (up 14.1 per cent), accounting for 64.2 per cent of the total export turnover of this commodity group of the country.
According to experts, the Vietnamese footwear industry has enormous export opportunities. China is now the world’s biggest footwear manufacturer and exporter. With labour costs in China rising, multinationals are shifting their factories to neighbouring countries to cut costs while they can still seek materials easily. Vietnam is an apt substitute.
In addition, Vietnam’s many free trade agreements (FTAs) with the Eurasian Economic Union, South Korea, the EU, including the Comprehensive and Progressive Agreement on Trans-Pacific Partnership (CPTPP), have been facilitating the country’s footwear exports. Though Vietnam’s labour costs are also rising, it is still lower than those in China and Thailand, which has attracted foreign attention to the Vietnamese market.
Where to find machinery and equipment?
Taking advantage of strong industrial development prospects in Southeast Asia as well as professional international exhibition platforms, a series of footwear supply chains will be present at the Vietnam International Footwear Machinery and Material Industry Exhibition (VFM) exhibition to be held in Ho Chi Minh City on November 20-23, 2019.
The VFM will take place at Saigon Exhibition and Convention Centre (SECC), attracting famous brands such as Mingling, Luluxin, Jin Yue Lai (TTY), Hongfeng, Jinxin, Mingan (Taiwei), Sokiei (Benyu), Changmeng, and Teng Yu Long to introduce automation equipment and technology in the footwear industry.
Footwear manufacturers from around the world will attend this event, bringing with them market-leading solutions for the footwear value chain.
Coincident with the Vietnam International Textile and Garment Industry Exhibition (VTG 2019), VFM will provide necessary machinery, equipment, technology, materials, and accessories for Vietnam’s footwear industry.
VFM in 2018 was a resounding success, attracting more than 12,000 visitors from 11 countries and territories. The upcoming VFM 2019 is highly esteemed by the footwear industry in the country and the region.
The VFM 2019 will continue last year’s success to attract visitors from Southeast Asian nations. It is noteworthy that, during the exhibition, there will be a seminar on the “Trump’s Trade War: What’s Next for Shoes and Apparel” by Peter T. Mangione, global footwear consultant of Global Footwear Partnerships LLC; and on “Branded Athletic Footwear – Innovation Model, Infrastructure and Approach” by Bruno Forcione, head of footwear innovation and footwear strategic sourcing of New Balance International Ltd.
The exhibition is jointly organised by Yorkers Exhibition Service Vietnam and Vietnam National Trade Fair and Advertising Co. (Vinexad). The event is co-organised by Hong Kong Apparel Machine Association, Paper Communication Exhibition Service Co., and Guangdong Sewing Equipment Chamber of Commerce.