Vietnam’s leather and footwear exports reached only $9.53 billion in the first seven months of the year, which exceeded $10 billion in the same period last year. Therefore it dropped out from the list of top ten export items.
According to the country’s Ministry of Industry and Trade on Thursday, Vietnam’s footwear exports fell 7.9 percent year-on-year between January and July. This is equivalent to $770 million compared to the same period last year, when footwear exports enjoyed 13.5 percent growth, reaching an export turnover of US$10.3 billion in the process.
The impact of the novel coronavirus (COVID-19) epidemic has caused the decline of footwear export turnover during the reviewed period, similar to the textile and apparel industry.
The country has reduced this year’s leather and footwear export target by over 10% due to the negative impact of the COVID-19 epidemic, which was set $24 billion after meeting the $22 billion export target last year.
The EU-Vietnam Free Trade Agreement (EVFTA), which came into force on 1 August, has given leather and footwear exporters hope to boost exports again in the third and fourth quarters of the year.
The EU currently represents a thriving market for the Vietnamese leather and footwear industry, accounting for about 30% of its annual export turnover, equivalent to about $6 billion.