As one of the world’s leading footwear manufacturers, Vietnam ranks second in the world in terms of leather and footwear exports after China. Vietnam exports more than 1 billion pairs of footwear of all kinds of to hundreds of countries around the world every year. In particular, Vietnam’s footwear exports to the EU account for the largest proportion of the total exports. By the end of 2021, there are about 2,200 enterprises producing footwear in Vietnam, mainly concentrated in the area around Ho Chi Minh City.

According to CRI’s analysis, two giant brands in the global footwear industry, Nike and Adidas, have chosen Vietnam as their main production base. Part of the global footwear chain is gradually shifting from China to Vietnam due to its lower costs. Nike has more than 100 suppliers in Vietnam, with 96 factories concentrated in the southern region.

Nike’s arch rival, Adidas, has also chosen Vietnam as its main production area. In its annual report (2020), Adidas suggested that in 2019, 98% of Adidas’ footwear products were produced in the Asian region. Vietnam has become the largest sourcing country for Adidas, accounting for about 40% of its total footwear production in 2021.

According to CRI’s analysis, due to the impact of COVID-19, Vietnam’s footwear exports was USD16.75 billion in 2020, decreased 8.6% YOY. In 2021, Vietnam’s footwear products were exported to more than 100 countries, with about 17.8 billion USD in footwear production. In 2021, Vietnam’s footwear exports have seen a resurgence in growth.

There is a more important basis for the bullishness of Vietnam’s footwear exports, that is, Vietnam has signed trade agreements helpful for exports with Europe and the United States. For example, in the EU-Vietnam Free Trade Agreement (EVFTA), Vietnam’s footwear exports to the EU amount to about 40%. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has helped Vietnam’s footwear exports to Canada and Mexico soar.

Vietnam has signed many agreements with developed countries that are conducive to promoting exports, but the strength of Vietnam’s local footwear enterprises remains weak and the major market share of Vietnam’s footwear industry is occupied by foreign companies. According to CRI, Vietnam’s footwear production and exports are expected to continue to grow in 2022-2031. For companies related to the international footwear industry chain, there are many investment opportunities in Vietnam’s market in the coming years.

Topics covered:

• Overview of Vietnam’s Footwear Industry
• Economic and Policy Environment of Vietnam’s Footwear Industry
• What is the impact of COVID-19 on the footwear manufacturing industry in Vietnam?
• Vietnam Footwear Market Size, 2016-2021
• Forecast on Vietnam’s Footwear Market, 2022-2031
• Analysis of Major Footwear Manufacturing Companies in Vietnam
• Key Drivers and Market Opportunities in Vietnam Footwear Industry
• What are the key drivers, challenges and opportunities for the footwear industry in Vietnam during 2022-2031?
• What is the expected revenue of Vietnam’s footwear market during 2022-2031?
• What are the strategies adopted by the key players in the market to increase their market share in the industry?
• Which segment of Vietnam’s footwear market is expected to dominate the market in 2031?
• What are the major adverse factors facing the footwear industry in Vietnam?

The post Research Report on Footwear Industry in Vietnam, 2022-2031 first appeared on CRI Report.

Gender and type of product segment insights:

Women’s and men’s apparel section generates 63.8% of the revenue, and the rest is accounted for by hosiery, sports and swimwear, intimate apparel, and clothing accessories. Garments marketed as fast-fashion designs have a high number of takers, especially in the emerging markets. A rising middle class in emerging markets, along with their improved fashion-consciousness, is driving increased per capita expenditure. Market players are focusing on ensuring that the latest fashion trends can be incorporated into their offerings and they hit stores in a matter of weeks, resulting in the undercutting of specialist players who once led the industry.

Distribution channel segment insights:

Most of the market is still controlled by brick and mortar stores, though the growth rate of offline distribution is meagre. However, sale of garments online is expected to grow at a significant rate during the forecast period. In North America, 81% of sales in 2018 is expected to be through offline stores.

Regional insights:

In 2017, Asia-Pacific was the dominant garments market. During the 2018-2023 period, among all the regions across the globe, Latin America is expected to exhibit the highest CAGR of 6.8%. However, in 2017, in the U.K., revenue contribution from the men’s and boys’ apparel section stood at 24.5%.

Companies covered:

1. Gap Inc.
2. H&M
3. Inditex
4. Kering
5. L Brands
6. LVMH
7. Nike
8. Adidas
9. Calvin Klein
10. Burton

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The post Global Garments Market (2018-2023) first appeared on CRI Report.