As such, Vietnam earned over US$17.9 billion from exporting footwear, handbags and suitcases in 2017, up 10.7% from 2016. Specifically, the country gained roughly US$14.7 billion from exporting footwear, up 12.8 percent, and nearly US$3.3 billion from exporting handbags and suitcases, up 2 percent.

The US, China, Germany, Belgium, Japan and England continue to be the main import markets for Vietnam’s footwear products; in which the US market contributed nearly US$4.6 billion or 35% of Vietnam’s total export value, an increase of 14% over the last year’s figure, followed by the Chinese market for 7.9% or US$1.04 billion (up 28% compared to last year). 

Vietnam’s export value of footwear to other markets is as follow: Germany of US$895.34 million (6.8% of total export value and increase of 33.6%); Belgium of US$816.89 million (6.2% and increase of 9.8%); Japan of US$673.07 million (5.1% and increase of 10.5%); England of US$635.91 million (4.8% and increase of 12.9%).

In particular, Vietnam continues to be the fifth-largest exporter of suitcases and handbags with export value of US$3.3 billion, accounting for 5.5% of the total products made worldwide. However, this is only equal to one seventh of China’s supply. 

The US is currently the world’s largest footwear importer with 2.34 billion pairs, accounting for 19.6% of total footwear products sold in the world. 

China meanwhile continues staying at the world’s top by exporting 9.31 billion pairs, equivalent to 67.3% of the 23 billion footwear products exported in 2017. 

Currently, the biggest challenge for Vietnam’s leather and footwear industry to date is low technological application in production and management in domestic companies compared with the Foreign Direct Investment (FDI) sector, said Diep Thanh Kiet, Vice Chairman of LEFASO. 

Moreover, value-added of footwear is still at low value (less than 40%), while there is an uncomprehensive development between raw material and footwear production, resulting in a lot of raw materials still have to be imported, especially materials for the upper shoes. 

Most companies in the industry are facing with pressure from labor forces, for which the majority are lacking, unstable or low level of skill and technique, lack of high tech workers, engineers, and management staff. 

Accordingly, local human resources should be used better with improved quality of training of skilled workers and strengthened management and production capability, as well as renewed technology, stressed Kiet.