Bags / Shoes & Accessories

Huacheng Import and Export Data Observation reported that after Vietnam's textile and leather footwear industries achieved remarkable recovery and growth in the first few months of this year, due to adverse changes in the world economic situation, it is expected that the growth of these two industries in the last few months of this year is not optimistic.

Vietnam Shoes Factory, facing difficulties at the end of the year

According to the import and export data of Huacheng, the export volume of shoes and handbags has exceeded 19 billion dollars so far; Among them, leather and footwear earned 16.5 billion US dollars, up 30.5% year on year; Foreign exchange earned by handbags was 3 billion US dollars, up 30%.

However, Pan Shichun, vice chairman and secretary-general of Lefaso, said that when making a forecast on the export situation in the last few months of 2022, he believed that the export activities of Vietnam's leather footwear industry were not optimistic, because the adverse factors of the world economic situation had a huge impact on the industry. Vietnam's main export markets for leather and footwear are the European Union and the United States. However, both of these markets are facing rising inflation, which has led to a reduction in spending and a decline in the consumer market, affecting market purchasing power.

On the other hand, according to the import and export data, the textile and clothing 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, and has affected enterprise orders and unit prices.

According to the import and export data, so far, Vietnam's textile and clothing exports have exceeded 31 billion dollars; Among them, clothing export earned foreign exchange of 26.04 billion US dollars, up 23.1%; Export of fiber yarn earned 3.438 billion US dollars; The export of textile and garment raw materials exceeded US $1 billion, up 19.4%. The trade surplus of textile and clothing industry is about 12.6 billion US dollars. However, it is expected that the industry will encounter many difficulties in the second half of this year, and the main markets will fall into inflation, leading to a decline in orders.

Need a complete solution

According to import and export data, up to now, thanks to the rapid growth in the first eight months, the total export earnings of textile and clothing, leather and footwear industries have reached 50 billion dollars. According to the set target, the total exports of these two industries will exceed 68 billion dollars by the end of this year; Among them, the export of textiles and clothing exceeded 43 billion dollars, and the export of leather shoes and handbags exceeded 25 billion dollars.

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

Pan Qingchun, who holds the same view, suggested that Vietnam's overseas business institutions assist domestic enterprises in finding raw material supply partners from the FTA market to take advantage of tax incentives; Provide timely market information to enterprises; At the same time, continue to promote the capabilities and information of Vietnam's leather and footwear industry advantages.

In order to support enterprises to overcome the difficulties, Vietnamese enterprises also look forward to the government's approval of the Development Strategy of Textile and Footwear Industry by 2030 and Outlook for 2035 as soon as possible, creating favorable conditions for the formation of large-scale industrial parks with centralized sewage treatment, advanced technology and green technology, so as to attract textile printing and dyeing investment, 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.