The value of Vietnam’s leather and footwear exports in 2018 was up 8.3 per cent. The industry has targeted growth rate of 10 per cent export value this year.
Vietnam exports a billion pairs of shoes every year and is the second largest leather and footwear exporter in the world. The footwear industry’s export revenue from CPTPP members is expected to increase by 10 to 15 per cent in 2019 because of the high reduction in tariffs and other regulations in CPTPP that became effective in Vietnam earlier this year. Vietnam signed free trade agreements with many CPTPP member countries such as Japan, Malaysia, Singapore and Brunei. The localisation rate in the industry has increased rapidly, reaching 50 per cent. With this rate, rules of origin under commitments of the agreements are not a big obstacle to domestic footwear enterprises in enjoying preferential tariffs.
Vietnam’s leather and footwear industry is expanding its export markets. The industry is using new technologies and environmentally-friendly materials to increase shares in fastidious markets. Global demand for leather and footwear in recent years has reached about 23 billion pairs. Shoes are mainly produced in 10 countries, including China, India, Vietnam and Indonesia.