Bags / Shoes & Accessories

Watson & Band Import and Export Data Observation reported that Vietnam's textile and leather footwear industries have achieved impressive recovery and growth in the first few months of this year. Due to the unfavorable changes in the world economic situation, these two industries are expected The monthly growth situation is not optimistic.

Vietnamese shoe factories faced difficulties at the end of the year

According to Watson & Band's import and export data, so far, the export volume of shoes and handbags has exceeded US$19 billion; among them, leather and footwear earned US$16.5 billion, a year-on-year increase of 30.5%; handbags earned US$3 billion, an increase of 30%.

However, Phan Thi Thanh, vice chairman and secretary-general of the Vietnam Leather Footwear and Handbags Association (Lefaso), said that when forecasting the export situation in the last few months of 2022, he believed that the export activities of Vietnam’s leather and footwear industry were not optimistic because of the global economic situation. Headwinds have had a huge impact on the industry. The main export markets for Vietnamese leather and footwear are the European Union and the United States, but these two markets are facing rising inflation, causing people to reduce spending, and the consumer market has declined, affecting the purchasing power of the market.

On the other hand, according to import and export data, the textile and garment industry is also facing the impact of global inflation. The rise in global inflation has led to a decline in consumer demand and purchasing power in many export markets such as the United States and the European Union, affecting corporate orders and unit prices.

According to import and export data, as of now, Vietnam’s textile and garment exports have exceeded US$31 billion; among them, garment exports have earned US$26.04 billion, an increase of 23.1%; fiber yarn exports have earned US$3.438 billion; textile and garment raw materials have exported more than 1 billion U.S. dollar, up 19.4 percent. The trade surplus of the textile and garment industry was about 12.6 billion US dollars. However, the industry is expected to encounter many difficulties in the second half of this year, with major markets mired in inflation, leading to a drop in orders.

need a complete solution

According to import and export data, as of now, thanks to the rapid growth in the first eight months, the total export revenue of the textile and garment, leather and footwear industries has reached 50 billion US dollars. According to the target, the total export of these two industries will exceed 68 billion US dollars by the end of this year; of which, the export of textile and clothing will exceed 43 billion US dollars, and the export of leather shoes and handbags will reach 25 billion US dollars.

In order to help textile and garment enterprises resolve difficulties, the Vietnam Textile and Garment Association (Vitas) recommends that Vietnamese business organizations stationed abroad continue to share market information with domestic enterprises. At the same time, Vietnamese companies themselves need to find measures to diversify the market, promote digital transformation and innovate technology.

Pan Shiqing, who held the same view, suggested that Vietnamese commercial agencies abroad assist domestic enterprises to find raw material supply partners from the free trade agreement market to take advantage of tax incentives; provide enterprises with timely market information; at the same time, continue to promote Vietnamese leather and Capabilities and information on the footwear industry's strengths.

In order to support enterprises to tide over the difficulties, Vietnamese enterprises also expect the government to approve the "Textile and Footwear Industry Development Strategy to 2030 and Outlook to 2035" as soon as possible, so as to create favorable conditions for the formation of large-scale industrial parks with centralized sewage treatment, advanced technology and green technology , to attract investment in textile printing and dyeing, solve the bottleneck of fabrics, meet the requirements of origin, and make full use of the preferential policies of the new generation of free trade agreements.