The South of Vietnam is the center of footwear companies

04/02/2020 | Banuli

Nowadays, Vietnam is considered as the "navel" of the world leather footwear industry as enterprises are moving their shoe factories from China, India and Brazil to Vietnam. That, the orders made in Vietnam also increased significantly. This is in part due to the benefits that free trade agreements have with other countries. In Vietnam in particular, the South is the center of footwear production in the country, where the number of shoe factories of both foreign and domestic enterprises is significantly larger than the two regions. again.

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According to the Vietnam Leather and Footwear Association (Lefaso), the footwear export market of Vietnam has been expanded to about 100 countries worldwide, of which more than 70 countries have export turnover of over 1 million dollars. In the first 6 months of 2017, the whole sector's exports reached USD 8.7 billion, an increase of 11%. Of which, footwear exports reached $ 7 billion, up 12% over the same period last year.

By the end of June 2017, with US $ 1.99 billion in export turnover, the US still accounts for the largest share of Vietnam's footwear exports, up 14% over the same period last year. last year and accounted for 35.3% of total exports of footwear. In that warehouse, the European market dropped to second place with $ 1.77 billion, up 9.6% and accounted for 31.2% of total footwear export turnover of Vietnam. China reached $ 418.5 million, up 31.15% and accounted for 7.4%, followed by Japan with $ 284.5 million, up 4.5% and accounting for 5%. 5 was Korea with 158.5 million USD, up 15.5% and accounted for 2.9%. A total of five markets account for more than four-fifths of Vietnam's total footwear exports.

The South East and South West regions are the most concentrated footwear factories in Vietnam, accounting for nearly 80% of the sector's export turnover. In particular, Ho Chi Minh City and Binh Duong, Dong Nai are the provinces with the largest footwear production in the country.

In the North, footwear production is concentrated in some provinces such as Thanh Hoa, Hai Phong, Hai Duong, Hanoi, Ninh Binh, Thai Binh. In particular, Thanh Hoa, Hai Phong are the provinces with the largest footwear production in the North. In the Central Region, there are only a few relatively large footwear manufacturing establishments located in Da Nang and Quang Nam.

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According to forecasts of world economic experts, the report in 2017, the total export turnover of the footwear industry can reach 17.8 billion, up 10% over 2016. Because China continues to master In order to reduce the investment incentives in the textile and footwear sectors to focus on high-tech industries, the orders for footwear processing will continue to shift from China to Vietnam. In addition, the Vietnamese leather and footwear industry is receiving more and more FDI businesses thanks to the opportunities that FTAs ​​have been having.

To achieve this, Vietnamese footwear enterprises are advised to promote the export of footwear products in the direction of exploiting the advantages and potential from the markets in the FTA countries that Vietnam has signed. At the same time, domestic enterprises need to step up investment in innovation of production models, improvement of technology and equipment modernization, expansion of production scale of domestic enterprises in order to increase productivity and quality. export products, enhance the competitiveness of foreign direct investment (FDI) enterprises in particular and foreign footwear enterprises in general, and promote linkages and participation in local and national footwear production chains. and global.

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