Shoes made in Vietnam are a trend, making the country the third-largest producer of footwear in the world.
Why Shoes Made in Vietnam are a trend
Vietnam is currently the third-largest footwear manufacturing country in the world, after China and India. Producing around 920M pairs annually and exporting more than 800M pairs to more than 50 markets globally. This is evidence of how important this industry is to the growing economy of this South East Asian country.
With strong competition from its neighbour, China, the Vietnamese Manufacturing base needs to continue investing in infrastructure as well as local raw material availability and accessory suppliers. Domestic footwear enterprises must strive for self-improvement, change their production models, invest in equipment and technology innovation whilst actively integrating themselves to join the global supply chain.
5 Famous Shoes Made in Vietnam
1. Nike
Vice President of Nike Group (USA) – Mr. Chris Helzer said that by 2020, Nike will celebrate the 25th anniversary of its establishment in Vietnam. Certainly, this is its most important market for production. In fact, Nike realizes up to 50% of its products in Vietnam. Nike also values the quality of Vietnam’s labour force that contributes to the success of this global sportswear brand.
2. Adidas
Adidas has halved the amount of footwear it makes in China having moved a large proportion of its shoe production to Vietnam. It is a significant shift. In fact, in 2008 roughly 30% of Adidas shoes were made in Vietnam and about 45% in China. By 2018 Vietnam had switched places with China now producing 45% of worldwide production compared with China’s 20%.
3. Puma
The PUMA village complex was inaugurated in 2009 in the South of Vietnam. It is a convergence of manufacturing, research and development all ‘under one roof‘. Currently, about 35% of Puma’s sportswear is being produced in Vietnam and Puma is increasing its production output every year.
4. Converse
Canvas shoes with rubber soles are an identity specific to Converse as a popular footwear for the young generations. By using a domestic natural rubber supplier for sole components, worldwide production of Converse shoes equates to 40% ex Vietnam.
5. Skechers
Skechers introduced a layer of memory foam to the sole of its shoes. This system provides extra cushioning, increasing the level of comfortability. This innovative process originated in Vietnam and has led to 35% of total production out of Vietnam.
Footwear in Vietnam – High quality and Convenience
Footwear is the second largest segment within the Vietnamese manufacturing sector, just behind Electrical machinery. It comprises all types of shoes with the current trend seeing a strong growth potential for sneakers. Large footwear brands have moved their production to Vietnam over the past 10 years as they have gradually shifted production out of China.
Definitely, the manufacturing sector in Asia is shifting. Vietnam currently manufactures two times more Adidas footwear than China does and Nike is increasing volumes year on year as it reduces its commitment to China. Obviously, there is the Chinese domestic market that will still mean that China manufacturing from some of these global brands retains importance.
Not only Sportswear
As well as sneakers, Vietnam produces also casual footwear and, whether cemented or vulcanised soles, there is a breadth of manufacturing capability. In addition, women’s fashion shoes are being produced in Vietnam with brands such as M&S, Asos, Aldo and Next all buying from local manufacturers.
The benefits of Vietnam Sourcing
Albeit much smaller than China, Vietnam offers a broad manufacturing sector with experience of exporting. Labour rates remain low, there is raw material availability and also a good range of product knowledge. Importantly, the Government has been investing in infrastructure of the past decade to create efficiencies with logistics and shipping. There are also some attractive duty benefits most notably with the recent ascension of the recent EVFTA (European Vietnam Free Trade Agreement).
Sustainability – innovating the shoe industry
Certainly, sustainability is a growing trend for consumer goods and the same applies to the shoe industry in Vietnam. In fact, footwear brands are picking up on recycled and eco-friendly materials. The use of recycling and biodegradable techniques as well as the concept of eco-consciousness are both becoming more widespread at manufacturing level. Often, more sustainable raw materials have a higher price point although the consumer is increasingly willing to pay this uplift (considering that the purchase decision is no longer solely about cost for a growing demographic). There are also factories in Vietnam focusing on reducing their impact on the environment and on working practices that are in line with the UN’s sustainable development goals.
Summary
Vietnam is well placed for OEM shoe manufacture and we are already working with our clients to make shoes in this fast growing sector of the Vietnamese manufacturing base.
In addition, we can help our clients with a wide range of products out of Vietnam, including Garden products, furniture, ceramics, homewares, candles and industrial products. Please contact us at vietnam@et2cint.com for more information.
