The US Spends Almost $3 Billion on a Vietnamese Commodity: Vietnam’s Exports to the World Rank 2nd Globally, with Orders from Over 150 Countries.

According to preliminary statistics from the General Department of Customs, footwear exports in April generated $2.2 billion, a significant 16.9% increase from the previous month. In the first four months of the year, exports of this commodity reached over $7.6 billion, up 14.5% from the same period last year.

In terms of market breakdown, the United States is Vietnam’s largest export market for footwear, with exports totaling over $2.8 billion, a 17.4% increase from the previous year.

The Netherlands ranked second among the export markets, with a turnover of over $590 million, a 20% increase from the previous year. China came in third with a turnover of over $495 million, however, this marked a 12% decrease compared to the first quarter of 2024.

In 2024, the Vietnamese footwear industry faced several challenges, including price pressures, increasingly high quality requirements, sustainability criteria, rising input costs, and labor shortages. Despite these obstacles, businesses in the industry persevered and achieved remarkable successes.

According to the Vietnam Leather, Footwear and Handbag Association, the industry’s total export turnover reached $27.04 billion, an 11.45% increase from the previous year. Vietnam is currently ranked second in the world in footwear exports, with an estimated 10% of global exports, and its products are present in 150 markets, including the US, EU, China, Japan, and the UK. Vietnam boasts over 1,000 footwear factories, providing employment for approximately 1.5 million workers and contributing about 8% to the country’s GDP.

The Vietnamese footwear export industry is forecasted to continue its recovery and growth trajectory in 2025, with a target export turnover of approximately $29 billion, representing a 10% increase from 2024 ($26-27 billion). As the third-largest footwear producer in the world (1.4 billion pairs/year) and the second-largest exporter, Vietnam has effectively leveraged free trade agreements (FTAs) such as the EVFTA, CPTPP, and UKVFTA to boost exports to key markets like the US (36.5%), EU (26%), and China (9%). In 2024, the industry expanded into South America and the Middle East, particularly with athletic footwear – its flagship product, which is expected to remain a growth driver in 2025.

However, the industry faces several challenges. Stringent requirements for green production and sustainable standards from the EU (including ecological design and supply chain traceability) necessitate significant investments in technology and process transparency from businesses. Reliance on imported raw materials from China and South Korea results in higher production costs, reducing competitiveness. Additionally, increasing logistics costs, labor shortages, and outdated production technologies pose further obstacles.

To achieve the export target of $29 billion set for 2025, businesses in the industry need to proactively adapt and innovate in the following ways:

Adopt modern production technologies to enhance productivity and product quality.

Implement green transformation in production, utilizing clean energy and environmentally friendly materials to meet international standards.

Maximize the benefits of FTAs, expand markets, and seek additional strategic partners.

Enhance the value and global recognition of Vietnamese brands, increasing the appeal and desirability of Vietnamese footwear products worldwide.