Leather and footwear sector sets 2022 targets

The leather and footwear sector was severely impacted by Covid-19 last year but still managed to overcome the challenges and grow. It has also targets to grow further in 2022.

According to an industry review for 2021 from the Vietnam Leather, Footwear and Handbag Association (Lefaso), the fourth wave of Covid-19 broke out in southern provinces in May, causing difficulties for 80 per cent of footwear factories.

The situation only improved in October, when the pandemic was brought under better control in southern provinces and businesses accelerated production recovery in the “new normal” and in a spirit of living with the pandemic.

Businesses have taken advantage of support policies from the State, creating favorable conditions for employees to return to work by complying with regulations on health and safety under the guidance of the Ministry of Health.

They also made good use of incentives from new-generation free trade agreements, especially the CPTPP and EVFTA, to boost exports in the closing months of 2021.

The sector’s industrial production index therefore increased 5.2 per cent year-on-year, but was still lower than the increase of 9.9 per cent posted in 2019.

Total export turnover of leather and footwear products reached $20.78 billion last year, up 4.6 per cent year-on-year.

Based on the global economic situation, control of the pandemic, and the results of new orders for businesses in 2022, Lefaso expects that growth in the leather, footwear, and handbag industry overall will increase to 10-15 per cent this year compared to 2021, reaching about $23-25 billion.