Vietnam's export of leather, footwear and bags this year will likely increase 10-15 per cent year-on-year to about US$23-25 billion, the Viet Nam Leather, Footwear and Handbag Association (Lefaso) has forecast.

Domestic leather and footwear firms have no choice but to convert their production activities as difficulties are expected to linger through this year due to the impact of the COVID-19 pandemic, experts have said.

The fate of 4 million workers in the footwear industry depends on the recovery of exports after Covid-19 ends.

The footwear and handbag industry aims to reach export revenue of US$24 billion in 2020, after hitting $22 billion last year, the industry association said.

VietNamNet Bridge - Though only around 10 Vietnamese footwear brands exist in the home market and each holds a modest 2 percent of market share, the products have begun conquering the local consumer market.

VietNamNet Bridge - After five years of implementing a master plan on the footwear industry by 2020, Vietnam still mostly does outsourcing for foreign partners. 

VietNamNet Bridge - Many Vietnamese businesses have spent big money to build up their brands to conquer the home market, despite the popularity of Chinese cheap products here.

The uncertainties of the EU economy with the Italian PM stepping down and the UK & Northern Ireland leaving the EU will adversely affect Vietnam’s exports to the large markets.

Footwear is a big industry of Vietnam, considered a ‘foreign currency earner’ thanks to high exports every year.  

VietNamNet Bridge - The majority of Vietnamese footwear companies make products for export and do not focus on the domestic market, where consumers often prefer foreign-made products.

VietNamNet Bridge - Vietnam is a big footwear exporter, but many Vietnamese do not wear domestically made shoes.

VietNamNet Bridge - Foreign invested enterprises (FIEs) account for less than 25 percent of total number of footwear enterprises, but make up 77 percent of total export value. 

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