Vietnam’s footwear industry is ramping up efforts to reduce dependence on the US market and explore new trade opportunities globally.
Footwear exports from Vietnam rose 16% year-on-year in the first four months of 2025. The country now ranks third in global production, after China and India.
At a recent trade promotion event in Hanoi, officials and industry leaders discussed strategies to boost global competitiveness and tap into Free Trade Agreement (FTA) benefits.
Ms. Phan Thi Thanh Xuan highlighted a major concern for Vietnam’s footwear sector its heavy reliance on exports, especially to the US, which accounts for 40% of shipments. Rising tariffs and economic instability have become key risks.
“The biggest challenge is that over 90% of our products are exported, with the US being the largest buyer. Any changes in tariffs there can hit us hard.”
Phan Thi Thanh Xuan, Vice Chairwoman and General Secretary, Vietnam Leather, Footwear, and Handbag Association (LEFASO)
Another challenge is the industry’s dependence on raw materials from China. Although finished shoes achieve 70–80% localization, the total industry average remains at just 55%.
This weakens Vietnam’s ability to meet FTA rules of origin and inflates costs due to non-tariff barriers such as carbon reduction and circular economy requirements.
Domestically, the industry must also meet Vietnam’s COP26 goal of net-zero emissions by 2050. This requires digital and green transformation, more skilled workers, and increased local material production.
Industry leaders say developing a domestic supply chain is critical. Localizing raw materials and accessories will reduce lead times, cut costs, and ensure compliance with trade rules.
Businesses are also looking to new markets like the EU and UAE. However, competition is tough, and compliance with high standards is essential.
