Vietnam’s shoe industry developing strongly
Although Vietnam’s footwear industry only really started in the mid 1990s the combination of a stable social situation and a cheap labour force have helped it to develop at a heady speed. In 1998 its shoe exports exceeded $668 million, while in 1999 it exported more than 100 million pairs to Europe. Last year about 6 million pairs were exported the US, with a value of $93 million.
The principal player in the region is China, and several Taiwanese companies have set up operations in both countries. Nike has five factories supplying it in Vietnam, and production is expanding in the largest plant. Overall, Nike’s factories account for 12% of all Vietnam’s shoe exports.
While competition in the region will chiefly come from China, Vietnam’s shoe-making industry looks set to expand, especially if the country’s infrastructure can develop at the same pace. Recent statistics show that Vietnam’s yearly output is already greater than 130 million pairs.
