Vietnam’s leather industry is a global powerhouse, achieving remarkable milestones in exports and production. Leather exports Vietnam has become a significant driver of the nation’s economic growth. Below are ten key insights into the growth, sustainability, and future of this vital industry.
1. $27 Billion Export Milestone
Vietnam’s leather and footwear sector is expected to hit $27 billion in export revenue in 2024, reflecting consistent annual growth. In the first seven months of 2024 alone, export turnover reached $10.14 billion, marking a 10.4% increase compared to the same period in 2023.
2. A Global Leader in Leather Goods
Vietnam ranks as the second-largest footwear exporter and the third-largest footwear producer worldwide, trailing only China and India. Vietnamese leather products have established a strong presence in North America, Europe, and Asia.
A Global Leader in Leather Goods
3. Dominance of FDI Enterprises
Foreign direct investment (FDI) enterprises contribute to 77.9% of the sector’s total export value, indicating the industry’s reliance on global partnerships and high standards of production.
4. Rising Handbag Exports
Vietnam’s handbag exports surged by 7.4% year-on-year, earning $1.62 billion in the first seven months of 2024. This growth demonstrates the diversification of leather products beyond traditional footwear.
Rising Handbag Exports
5. Sustainable Leather Goods Demand
Vietnam’s leather industry is adapting to global trends by embracing eco-friendly leather production methods. Consumers worldwide demand sustainable leather goods, and Vietnamese manufacturers are responding with innovations in materials and processes.
6. The Role of Vietnamese Footwear Manufacturing
Vietnamese footwear is renowned for its affordable production costs and exceptional quality. With more than 1.48 million workers employed in the sector, Vietnam offers unmatched scalability for large orders while maintaining rigorous quality control.
The Role of Vietnamese Footwear Manufacturing
7. Top Export Markets
The industry serves 16 major global markets, including the United States, China, Japan, South Korea, and the EU. These markets accounted for over 88.4% of the sector’s total export value in recent years.
8. Competitive Advantages in Supply Chain
Vietnam’s leather industry benefits from a robust supply chain, with more than 3,400 enterprises supporting the sector. This includes both raw material processing and final product assembly, ensuring efficiency at every stage of production.
Competitive Advantages in Supply Chain
9. Challenges and Opportunities
While Vietnam is a leader in the industry, it faces challenges such as rising sustainability standards and fierce global competition. However, the country’s commitment to innovation and strategic use of trade agreements ensure a bright future.
10. Vietnam Leather Supply Chain and Sustainability
The industry has seen significant investments in modernizing its supply chain to meet the demands for eco-friendly leather production. Many manufacturers now comply with global sustainability certifications, setting Vietnam apart as a responsible exporter.
Vietnam Leather Supply Chain and Sustainability
The Future of Vietnam’s Leather Industry
With an annual growth rate of 3.33% in value addition and 60 USD per capita contribution to the economy, Vietnam’s leather industry is poised for sustained success. Its strategic focus on sustainable practices and high-value goods will continue to attract global buyers.
Are you ready to explore Vietnam’s thriving leather industry? Contact VietThai Sup Man to arrange factory tours and discover how Vietnam can meet your leather and footwear needs. Connect with us today and take the first step towards unparalleled business opportunities in this dynamic market!
