Leather and footwear exports for the whole year of 2024 are expected to reach 27 billion USD

Footwear and handbag export turnover in the first 7 months of 2024 reached 15.2 billion USD, an increase of over 10% over the same period. Based on the number of orders signed by businesses, it is forecasted that exports for the whole year of 2024 will reach 26-27 billion USD.

The entire leather and footwear industry's exports in 2024 are expected to reach 27 billion USD.

According to data from the Ministry of Industry and Trade, in the first 7 months of 2024, the total export value of the leather and footwear industry reached 15.2 billion USD, of which footwear reached 12.8 billion USD, up 10.1%; handbags reached 2.35 billion USD, up 7.9% over the same period last year.

Signs of export recovery in the footwear industry have gradually improved since the end of 2023 and have improved more clearly in recent months. Currently, many businesses have signed export contracts for the whole year of 2024.

Vietnam is currently the world's third largest producer (after China and India) and second largest exporter of footwear, with an export turnover of nearly 24 billion USD in 2023 and is aiming for an export target of 26 - 27 billion USD in 2024.

The Vietnam Leather, Footwear and Handbag Association (Lefaso) said that the leather and footwear industry has taken advantage of the free trade agreements (FTAs) that Vietnam has signed to boost exports.

The evidence is that in the past 7 months, exports to the EVFTA market increased by 23.8%; the CPTPP market increased by 13.9%; and the ASEAN market increased by 2.4%. In particular, the EAEU region had no exports due to the impact of the Russia-Ukraine conflict.

Mr. Nguyen Cong Han, Deputy Director of the Department of Industry and Trade of Hai Phong City, said that in the first 8 months of 2024, the total export turnover of footwear to markets with FTAs ​​increased by 8% over the same period. Some markets had growth rates of over 10% such as: Europe (13%), Korea (13%), ASEAN (17%), Hong Kong (27%)...

Lefaso forecasts that, with the current growth rate and the number of signed business orders, the export turnover for the whole year of 2024 will reach about 26 - 27 billion USD.

In 2023, leather and footwear exports will not reach the set target, bringing in only 24 billion USD, down 14.2% (equivalent to a decrease of 4 billion USD) compared to 2022. Of which, footwear exports will reach 20.2 billion USD, down 15.3%, accounting for 5.7% of the country's total exports. Export turnover of handbags, suitcases, hats, and umbrellas will reach 3.78 billion USD, down 7.8% compared to 2022.

Ms. Phan Thi Thanh Xuan, Vice President and General Secretary of Lefaso, said that the biggest challenge for the footwear industry at the moment is to meet the new standards set by many major footwear importing countries, which are sustainability in production, requirements on social responsibility...

Typically, the EU market, from March 2024, has begun to introduce new requirements such as eco-design with sustainable designs, traceability and supply chain transparency.

Changing import market policies will have a strong impact on businesses in the industry.

Notably, the EU is the second largest export market for the footwear industry, after the US. Last year, affected by the global economic recession, footwear exports to the EU reached 4.82 billion USD, down 17.5% and accounted for 23.8% of footwear export value (some important markets in the EU recorded a sharp decline: Belgium reached 1.2 billion USD, down 26.3%, the Netherlands reached 1.0 billion USD, down 5.7%, Germany reached 943.0 million USD, down 27.1%).

In the context of import markets requiring higher sustainability and transparency in production, Ms. Xuan emphasized: "Enterprises need to quickly improve and make transparent information about their product supply chains starting from raw materials, sustainable production towards a circular economy, ensuring responsibility to society and the environment".

In addition, to increase the initiative in receiving high-value export orders is to improve the ability to supply raw materials.

Currently, most of the raw materials for export production are imported from China, South Korea and ASEAN countries. Therefore, meeting the intra-bloc origin ratio as required by FTAs ​​to get good tariff preferences is also a barrier.

The Vietnam Industrial Development Strategy to 2025, with a vision to 2035, issued under Decision No. 879/QD-TTg dated June 9, 2014, identified textiles and footwear as two of the seven priority industries of Vietnam. To continue developing the industry in the coming period, according to Lefaso leaders, breakthrough solutions are needed to upgrade the industry value chain to create sustainable benefits.

It is known that Lefaso has proposed to build a trading center for developing raw materials and innovating the Vietnamese fashion industry in Binh Duong. When this center exists, it will help Vietnamese businesses promote their internal strength and increase their competitiveness in the market.

Source: https://baodautu.vn/xuat-khau-da-giay-ca-nam-2024-du-kien-dat-27-ty-usd-d223512.html