Vietnam's leather and footwear exports are hampered by declining demand.

DNHN - The Vice Chairman of the Ho Chi Minh City Leather and Footwear Association is Mr. Nguyen Van Khanh. According to Ho Chi Minh, the Russia-Ukraine conflict has hurt the leather and footwear industry since the end of 2022, as export orders have decrease

The Vice Chairman of the Ho Chi Minh City Leather and Footwear Association is Mr. Nguyen Van Khanh. According to Ho Chi Minh, the Russia-Ukraine conflict has hurt the leather and footwear industry since the end of 2022, as export orders have decreased by 60-70%. Likewise, the domestic market is experiencing difficulties.

According to Mr. Khanh, businesses are currently producing orders for the winter, but this year has been extremely challenging.

"As a result of a decline in export orders, many businesses are forced to reduce labor. There are approximately 100 member companies in the Ho Chi Minh City Leather and Footwear Association. Currently, approximately 50 percent of member companies operate moderately to retain employees. Mr. Khanh revealed that fifty percent of businesses have agreed with their employees to suspend operations while awaiting orders.

Since the fourth quarter of last year, before the impact of inflation, the major export markets, including the United States, the European Union, and Japan, have been affected, causing consumers to reduce spending and retailers' inventories of footwear products. And brands continue to be at a high level, impacting the first half of this year's order prospects.

Ms. Phan Thi Thanh Xuan, vice president and general secretary of the Vietnam Leather, Footwear, and Handbag Association, stated that businesses must diversify from supply to export markets to overcome difficulties. However, the Association desires that the overseas Vietnamese trading system aid businesses in locating export partners for exporting raw materials and accessories to FTA-covered markets.

The textile and garment industry is not exempt from the adversity of the current economic climate, as it is also affected by global inflation. Even though even in January and February, garment workers enthusiastically began production, by the end of the first quarter, many units had been ordered, but the industry faces many difficulties and challenges when demand is high. Consumption and orders decreased, while inventory grew...

In 2023, the global demand for textiles and apparel is only expected to increase by 2.5% to 4%, which is a low growth rate compared to previous years. The global demand for textiles and apparel has not yet recovered due to sluggish purchasing power in major apparel-consuming markets such as the United States and Europe.

Ngoc Phi (TH)