Vietnam’s leather and footwear industry is off to a strong start in 2025, recording over 10% year-on-year export growth in the first half of the year, according to data from the National Statistics Office.
Footwear exports reached nearly $12 billion, showing a 10.1% increase, while handbags, suitcases, and umbrellas brought in close to $2.2 billion that’s an 11.6% rise compared to the same period last year.
Vietnam remains the world’s third-largest leather and footwear producer, making around 1.4 billion pairs of shoes annually behind only China and India.
When it comes to exports, the country ranks second globally, shipping approximately 1.3 billion pairs each year.
The sector’s continued success is tied to its ability to make the most of 16 free trade agreements (FTAs) with major global markets. Vietnam also benefits from a large, cost-effective labour force, where average monthly wages range from $181 to $200.
Despite challenges in 2025 such as rising costs, sustainability demands, and labour shortages the industry still generated $26 billion in revenue in the first half alone. That marks a nearly 10% increase compared to the same period in 2024.
Looking ahead, the industry has set an ambitious target 10% year-on-year export growth, aiming to reach a total export value of $29 billion by the end of 2025.
To meet this goal, companies are shifting toward green and circular production models. They’re focusing on sustainability, improving localisation of raw materials, and aligning with stricter regulations in key markets like the EU and United States.
Vietnam’s top export markets include the US, EU, South Korea, China, and the UK. The United States remains the largest buyer, with nearly $8.3 billion worth of leather and footwear imports from Vietnam in the first half of 2025 that is a 15.6% increase from last year. Many American brands also manufacture directly in Vietnam.
Nike, for example, has made Vietnam its global manufacturing hub. Of the 600 million pairs of shoes the company produces annually, around half are made in Vietnam.
At a recent conference held in late May by the Ministry of Industry and Trade, with support from the Vietnam Leather, Footwear, and Handbag Association, stakeholders discussed the industry’s future. Key proposals were presented to strengthen the sector’s position and diversify its markets.
One recurring theme was the urgent need for skilled talent especially in marketing and design. These two areas are seen as critical for Vietnam to transition from contract manufacturing to owning brands and creating global recognition.
To support this shift, participants proposed bringing in international experts in fashion trends, consumer behaviour, and product development to provide direct training and mentorship.
Digital transformation in trade promotion was also seen as essential. Adopting new technologies to boost transparency and product traceability is now crucial to staying competitive in global markets.
Another top priority is strengthening domestic supply chains by developing specialised industrial parks to support the leather and footwear ecosystem. This would reduce reliance on imports and help fully utilise the benefits of free trade agreements.
Source – Vietnam Investment Review
