In the first nine months of the current year, Vietnam’s footwear exports increased by 12.5 per cent Y-o-Y to $16.53 billion, shows data from the General Statistics Office.

With this achievement, footwear also become one of top five export categories for Vietnam and one of just seven goods to surpass the $10 billion mark in exports.

This rise in Vietnam’s footwear exports is being driven by a broader recovery in its manufacturing sectors, particularly textiles and garments. Ahead of the peak production season at the end of the year, the country is experiencing a rising demand from both domestic and international markets.

However, despite these positive trends, severe labor shortages continue to challenge the industry’s growth, says PhanThiThanhXuan, Vice President and General Secretary, Vietnam Leather, Footwear, and Handbag Association. There is an urgent need for skilled workforce in labor-intensive sectors like textiles and footwear as the current shortfall continues to hinder production and the industry capability of meeting growing demand, he adds.

Noting the double-digit growth rate in the leather and footwear industry, Xuan says, the sector is on track to achieve its ambitious target of $27 billion in export revenue by 20240-end.

Throughout 2024, Vietnam’s footwear exports continued to grow in key international markets. In addition to labor shortages, the industry is also addressing supply chain risks, particularly in sourcing raw materials. At a recent event focused on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Xuan proposed establishing a raw material trading center to the Ministry of Industry and Trade.

This initiative will help reduce Vietnam’s dependence on imported raw materials, which currently account for 65 per cent of production costs, by enhancing the country’s ability to source essential resources for global export demands, Xuan said. The proposal could streamline production, improve order fulfillment, and also accelerate Vietnam's vision to elevate the fashion industry to $100 billion by 2030, he added.