Vietnam world's 3rd largest exporter of shoes, leather

Vietnam is now the world’s third largest exporter of footwear with a total export value in the first nine months of this year rising by 10.5 per cent to $11.7 billion, according to the ministry of industry and trade (MoIT). The sector, however, is at present facing difficulties, such as increasing labour costs and lower labour productivity. The footwear sector will also be hit by the fourth industrial revolution for which the factories will have to invest in advanced equipment and reduce workforce, according to a Vietnamese newspaper report. Domestic footwear and bag businesses are expected to witness fierce global competition this year and in the coming years, according to Nguyen Duc Thuan, president of the Vietnam Leather, Footwear and Handbag Association (LEFASO). (DS)