Export of footwear and handbags from Vietnam continues to grow. Foreign revenue in 2019 reached 22 billion USD. The goal for 2020 is for the value of all accessories to reach 24 billion, also thanks to the free-trade agreements reached lately.
The past year
According to Lefaso, Vietnam’s association for footwear and handbags’ manufacturers, the export of accessories in 2019 increased by 12.2% on yearly base. The USA were the largest market, accounting for 7.4 billion of revenue (+13%) between January and November. In second place was the EU, 5.4 billion (+7.2%). China was 3rd, as it bought 1.7 billion USD of merchandize (+19.3%).
The weight of foreign investments
Nguyen Duc Thuan, president of Lefaso, pointed out that companies with foreign capital generate ¾ of total exports. The manager also stated that at the same time, the ones supported by internal capital are increasing: they were worth 19.7% of the total in 2017 and have reached 24.2% in 2019.
24 billion from exported accessories
Vietnam’s government announced that it has a strategy to transform the leather chain in 2020, to make it a cutting-edge segment focused on exporting goods. Footwear and leather goods companies are also benefitting from the opportunities provided by the new free-trade agreements.