Vietnam's leather and footwear exports set to hit $27 billion in 2024

Vietnam’s leather and footwear industry is set to finish the year on a high note, with export revenues projected to reach between $26 billion and $27 billion for 2024. This trajectory represents a robust year-on-year increase of approximately $3 billion, signalling a decisive recovery for one of Southeast Asia's manufacturing powerhouses. The Vietnam Leather, Footwear and Handbag Association (LEFASO) attributed this growth to a resurgence in global demand that began in late 2023. According to Phan Thi Thanh Xuan, LEFASO’s Vice Chairwoman and General Secretary, several major firms have already secured production contracts stretching through mid-2025, providing a stable outlook for the medium term.

North America leads demand

Despite global economic headwinds, the export data reveals a heavy reliance on Western markets. North America remains the primary driver, accounting for 41.4 per cent of total footwear exports and 47 per cent of handbag exports. The European Union follows as the second-largest destination, contributing 29.5 per cent to footwear and 25.4 per cent to handbag shipments. Xuan noted that Vietnam maintains its position as the world’s second-largest exporter of footwear and the third-largest producer, trailing only behind China and India. The concentration of trade remains high, with 16 key markets, including the United States, China, Japan, Belgium, and the United Kingdom, accounting for over 88.4 per cent of the total export turnover.

Push for Green Industrial Zones

Looking ahead, LEFASO is advocating for structural shifts to maintain competitiveness amid tightening international environmental standards. The association has called on the government to facilitate the establishment of specialized green industrial zones. These hubs would focus specifically on sustainable leather tanning processes, high-tech production of technical fabrics, and the manufacturing of precision mold components. The move toward green manufacturing is seen as a strategic necessity to meet the stringent environmental, social, and governance requirements of Western buyers. Industry experts suggest that by localizing the production of raw materials and technical components within sustainable zones, Vietnam can reduce its reliance on imported inputs and improve its value-added margins in the global supply chain.