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VIETNAM FOOTWEAR LOOKING AHEAD TO COMING DIFFICULTIES

With the expectation to double the value in 2022 against 2021, the footwear export from Vietnam is facing difficulties from a shortage of orders. From current Voltrans customers’ feedback the orders from EU were recently very low, then US, and later from Japan, and China. We could understand the low demand in EU in the impact of Russia-Ukrain war and then economic inflation keeping people’s savings much more than usual. Recently in early November, Ty Hung – a Taiwanese footwear cut off nearly 1,200 workers to show how the difficulty of the impact of war in EU.

We would not focus on the difficulties, but to find solutions to other markets or different customers for Vietnamese footwear factories in the advantages of various FTAs in which Vietnam government signed with other countries. We can also find more supply from other markets than China, where also suffered because of Chinese government’s policy of Zero-covid. Finding smaller quantity orders may help Vietnam factories keep up with the low demand with shorter delivery time than normal orders always in rush.

In long term, the government and footwear associations like Lefaso (Vietnam leather footwear and handbag association) would join hands with factories to upscale the size and scope of the internal industry to directly sign contracts with foreign big brands like Nike, and Adidas instead of via Taiwan, Chinese or Korean dealers. We hope that, shortly, Vietnam footwear factories can actively play better roles in production worldwide.

By Thomas
Voltrans Logistics – Your Ware Our Care