Vietnam’s leather and footwear industry is aiming to achieve export revenue of US$24 billion during the course of the year, maintaining a double-digit growth rate.

According to the Vietnam Leather, Footwear and Handbag Association (Lefaso), the country’s footwear and leather exports throughout 2019 enjoyed steady growth with turnover hitting US$22 billion, an increase of 12.2 per cent compared to 2018.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership, more commonly known as the CPTPP, which came into effect at the beginning of the year, has seen the sector expand its footprint into new potential markets such as Mexico, Canada, Chile, and Peru.

As a result, the nation’s footwear products have been able to make inroads into over 100 countries, including 70 nations where export turnover stands at more than US$1 million.

These factors have led Lefaso to predict that the current year will see the sector’s average industrial production index rise by 11 per cent, with the localisation rate of products reaching 60 per cent, along with export turnover of US$24 billion, maintaining a growth rate of 10 per cent.

Phan Thi Thanh Xuan, Lefaso General Secretary, noted that the sector’s export activities remained steady whilst still maintaining their competitive advantages in traditional markets during 2019.

Over the course of the last year the sector’s industrial production index enjoyed a rise of 10 per cent, with turnover hitting US$22 billion, an increase of 12.2 per cent for footwear and handbag products, which has seen a number of bright prospects open up for the industry.

Within the context of the country’s leather and footwear industry becoming more deeply integrated into the global economy, Deputy Minister of Industry and Trade Cao Quoc Hung stated his belief that there will be complicated and unpredictable developments for the coming year, both globally and regionally.

The Deputy Minister added that local firms must be active in using innovate technology, improving their production capacity, whilst becoming more proactive in developing markets, and improving their overall competitiveness.

Most notably the Ministry of Industry and Trade will continue to remove difficulties and create favourable conditions for domestic businesses to expand into new markets and support enterprises to improve their production capacity.

The Ministry of Industry and Trade has drawn up a strategy aimed at promoting the development of the leather and footwear industry by 2030 with a vision towards 2035.

This strategy is expected to be issued during the coming year in order to help the government and local businesses operating within the sector transform the footwear industry into a spearhead industry in terms of production and export activities, Deputy Minister Cao Quoc Hung emphazised.

According to many experts, the Vietnamese leather and footwear sector is poised to enjoy a wealth of opportunities to make breakthroughs and boost market expansion.

Despite these positives, firms must target the value-added segment and high-end brands as a means of achieving higher profits.