Vietnam's exports of footwear, suitcases and bags are expected to rake in US$21.5 billion during 2019, representing a 10% on-year rise, according to the Vietnam Leather, Footwear and Handbag Association (LEFASO).
LEFASO predicts that the export value of footwear and bags will reach US$21.5 billion next year, accounting for 9% of the country’s total export value.
The demand for consumption among major markets is forecast to remain strong. The manufacturing of footwear will continue to shift from China to Vietnam as companies wait for opportunities created by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), taking effect in early 2019, and the EU-Vietnam FTA, also expected to become effective next year.
Foreign direct investment in footwear production is predicted to follow an upward trend in 2019 as companies seek to avoid the fallout from US-China trade tensions and make use of the FTAs coming into force, thus sending footwear exports higher in 2019.