According to Phan Thi Thanh Xuan, vice chairwoman and general secretary of the Vietnam Leather, Footwear, and Handbag Association (LEFASO), a number of top Vietnamese footwear firms have signed contracts that will last until the middle of 2025.
Hanoi (VNA): According to Phan Thi Thanh Xuan, vice chairwoman and general secretary of the Vietnam Leather, Footwear, and Handbag Association (LEFASO), a number of top Vietnamese footwear firms have signed contracts that will last until the middle of 2025.
Xuan emphasised that the industry employs over 1.5 million people, has more than 1,000 factories, and makes up about 8% of the country’s GDP. With 1.3 billion pairs produced annually, Vietnam ranks third in the world in terms of footwear production, after China and India. With more than 1.27 billion pairs shipped outside annually, it is also the second-largest exporter.
By 2030, the sector hopes to generate between 38 and 40 billion USD in total export income, showing significant development potential. However, the worldwide trend towards sustainability is posing a growing threat to exports. Sustainability standards were previously established by brands, but in important areas like the US and the EU, they are increasingly being enshrined in legislation.
For instance, starting in the second quarter of last year, the EU implemented new rules, such as sustainable eco-design guidelines. According to Xuan, the two main issues facing the sector are the requirement for sustainable manufacturing practices and adherence to social responsibility guidelines.
The need of developing local supporting industries, especially for raw materials and accessories, was acknowledged by experts. For the manufacturing of materials like leather, technical textiles, moulds, and soles, LEFASO has suggested the establishment of specialised industrial parks. enable centralised manufacturing while aiding in environmental preservation initiatives.