“On January 20 next year, I will sign all necessary documents to impose a 25% tariff on Mexico and Canada, along with an additional 10% tariff on imports from China,” President-elect Donald Trump announced on Truth Social on November 25.
While the “China+1” strategy is not a novel approach, it has gained significant traction in the months following Trump’s election. If you’re considering shifting part of your footwear supply chain to Vietnam, which product category would best meet your needs?
Vietnamese footwear is sold in more than 150 markets globally, with the United States consistently being the largest export destination for over two decades. Every year, the U.S. accounts for 31–35% of Vietnam’s total footwear exports. Notably, during the 2021–2022 period, this figure surged to 40–42%, reflecting remarkable growth.
The United States — The No1 Export Market of Vietnamese Footwear
Outstanding Achievements and Fluctuations In 2022, footwear exports to the U.S. reached a record high of 9.6 billion USD, marking a 30% increase compared to 2021. This growth was largely fueled by the economic recovery following the COVID-19 pandemic.
However, 2023 saw a decline due to the impact of global inflation, which reduced overall spending in the U.S. As a result, footwear exports to the U.S. fell to 7.2 billion USD.
Situation in 2024 According to data from the General Department of Customs, in the first seven months of 2024, footwear exports to the U.S. reached 5.7 billion USD, reflecting a 14.3% increase compared to the same period in 2023.
Key Product Groups The export breakdown by product type is as follows:
- Synthetic Leather Shoes: 32%
- Sports Shoes (with major brands like Nike and Adidas): 28.45%
- Fabric Shoes: 22.52%
- Low-top shoes: 10.5%
- High-Top Shoes: 1.83%
- Other Types of Shoes: 1.02%
- Safety Shoes: 0.32%
Vietnam’s footwear industry continues to maintain a strong presence in the U.S. market, despite fluctuations in global economic conditions.
China Market — Ranked 2nd in Vietnam’s Footwear Market Share
Since late 2015, China has become Vietnam’s second-largest footwear export market, a position it has consistently held. Despite being the world’s top footwear producer, China continues to have strong import demand for footwear products from Vietnam, particularly fabric shoes, an area where Vietnam leads globally in production.
Export Turnover Fluctuations
- 2011–2013: Footwear export turnover to China accounted for about 4% of Vietnam’s total footwear export turnover.
- 2016: The proportion increased to 7%, marking a clear growth trend.
- 2020: Exports peaked at 12% of total turnover, reaching 2 billion USD.
- 2021–2023: Export turnover began to decline, and Vietnam’s footwear exports never returned to the 2 billion USD mark:
Key Export Product Groups
- Fabric Shoes: 40%, the most imported product category by China.
- Leather Shoes: 27%.
- Low-Cut Shoes: 16.3%.
Factors Driving Growth
- Contribution from FDI Companies: Major brands like Nike and Adidas, produced in Vietnam, have exported back to China, contributing significantly to export turnover.
- The shift of Supply Chains: In late 2021, China shut down the shoe production centre in Putian, which housed 4,200 factories producing over 1.3 billion pairs of shoes annually. This closure created an opportunity for Vietnam to increase footwear exports to China, compensating for the demand gap.
Vietnam’s footwear sector continues to strengthen its position in the Chinese market, supported by both production capacity and shifting global supply chains.
European Market — An Important Market for Vietnamese Footwear
The European Union (EU) is a key market for Vietnamese footwear, characterized by high purchasing power, a high standard of living, and one of the world’s largest demands for shoes, with an average consumption of 6–7 pairs per person per year. This makes the EU a strategic and attractive market for Vietnam’s footwear industry.
Footwear Export Trends to the EU
- 2015–2019: Exports grew steadily with an average annual growth rate of 7.1%.
- 2020: Exports decreased sharply by 13.6%, totalling 3.85 billion USD, due to the impact of the COVID-19 pandemic. This led to a reduction in the average growth rate for the 2015–2020 period to 2.6% per year.
Recovery Period:
- 2022: Exports rebounded strongly, reaching a record 5.8 billion USD, driven by post-pandemic demand recovery.
- 2023: Export turnover slightly decreased to 4.91 billion USD but remained high compared to previous years.
Key Markets in the EU
- Belgium and Germany: These two countries are the largest importers of Vietnamese footwear within the EU, collectively accounting for 49% of total footwear export turnover to the EU.
Key Export Products Vietnam exports a variety of footwear types to the EU, focusing on four main product groups:
- HS 640411: Sports shoes.
- HS 640399: Synthetic leather shoes.
- HS 640419: Fabric shoes.
- HS 640299: Other footwear.
Together, these four categories account for over 86% of total footwear export turnover to the EU, underscoring the importance of these product groups in meeting the region’s demand.
The EU remains a critical market for the growth and expansion of Vietnam’s footwear industry, bolstered by recovery trends and sustained demand for a variety of high-quality shoe products.
Vietnam’s Growing Role in the Global Footwear Market
The global footwear market is projected to reach US$438.62 billion in 2023, with a CAGR of 4.3% from 2024 to 2030. Rising disposable incomes, especially in emerging economies, are driving increased spending on fashion footwear.
According to the World Footwear Yearbook 2023, footwear consumption is expected to hit 20.6 billion pairs in 2022, a rise of 8.42% from 2021. Consumers now prioritize comfort and functionality, fueling demand for sneakers, sports shoes, and casual footwear. The growing popularity of online shopping and social media marketing has made a wider range of footwear brands more accessible, further boosting sales.
Seven of the top 10 largest global footwear companies operate in Vietnam, with Dong Nai province hosting major foreign and domestic players such as Chang Shin, Taewang, Pou Chen, Hwaseung, and Bitis. These companies mainly produce footwear under orders from global brands like Adidas, Nike, Reebok, New Balance, Vans, and Puma. The key factors driving production in Vietnam include preferential trade agreements, skilled labour, and political stability.
FDI companies dominated the export turnover in 2010, accounting for 90% of total exports. However, by mid-2024, their share had decreased to 77%, as domestic enterprises have increasingly tapped into the export market. While domestic companies still lag in trendy product design, they excel in manufacturing footwear based on international specifications, producing products comparable to those of global giants like Nike and Adidas.
With its strategic advantages, Vietnam is poised to further strengthen its role in the global footwear market. Businesses can source raw materials from local suppliers or import from China and produce in Vietnam to mitigate risks from trade restrictions, fostering a resilient supply chain between Vietnam, China, and the global footwear industry.
See more:
Vietnam Footwear: A Global Sourcing Leader
Vietnam Footwear Export Value 2011 – 2023
