Shoes produced at Sao Việt Company in Bình Dương Province's Dĩ An Industrial Zone. — VNA/VNS Photo Dương Chí Tưởng

HÀ NỘI — The footwear and handbag industry aims to reach export revenue of US$24 billion in 2020, after hitting $22 billion last year, the industry association said.

According to Việt Nam Leather, Footwear and Handbag Association (Lefaso), footwear export revenue was expected to reach $20 billion while handbags achieved $4 billion this year.

Nguyễn Đức Thuấn, Lefaso’s president, said foreign-invested producers remained the major driver for footwear and handbags, citing statistics that foreign-invested firms accounted for 75.8 per cent of the sector’s export revenue in 2019

The industry, however, saw a slight expansion of domestic producers in recent years, accounting for 24.2 per cent of the export revenue in 2019, from 19.7 per cent in 2017 and 21.6 per cent in 2018.

Thuấn said that the US-China trade war would continue posing risks to Việt Nam’s footwear and handbag exports.

Deputy Minister of Industry and Trade Cao Quốc Hưng said that the Government would continue to provide support for footwear and handbag firms in expanding markets and improving production capacity.

The ministry was developing a strategy to turn leather and footwear into a spearhead industry for export.

Hưng also urged footwear and leather firms to take advantage of opportunities from free trade agreements while preparing for challenges from uncertain global and regional trade developments.

He also said firms should be proactive in renovating technologies and enhancing their production capacity as well as focusing on market research and development.                

The industry reached an export revenue of $22 billion in 2019, representing a rise of 12.2 per cent over the previous year. Up to $18.3 billion of the export revenue came from footwear exports and $3.7 billion from handbags.

The US was the largest market for Việt Nam’s footwear and handbag products, with a revenue of $7.41 billion (up 13 per cent) in January-November, followed by the EU with $5.418 billion revenue (up 7.2 per cent) and China at $1.776 billion (up 19.3 per cent). — VNS