Footwear production was estimated at 31 million pairs in October. (Photo: baodautu.vn)

In the Jan-Oct period, production was estimated at 249.1 million pairs, an increase of 0.8% year-on-year, while exports totalled 13.38 billion USD, down 9.9%.

After a slump in the second quarter, orders at leather and footwear companies began to recover in the third quarter, with many receiving sufficient demand to keep them busy for the remainder of the year, according to Vietnam News Agency. 

In particular, after three months of the EU-Vietnam Free Trade Agreement (EVFTA) being in effect, footwear has seen growth in exports.

Figures from MoIT’s Import-Export Department revealed that in August and September, the value of footwear products receiving certificates of origin for export to the EU reached nearly 391 million USD.

Despite the recovery in orders, MoIT said that numbers remain modest due to low consumption triggered by COVID-19.

Though the EVFTA is expected to drive growth in the leather and footwear sector, the reality is that not many companies are able to exploit the deal’s advantages.

Some 85 percent of the 1,700 footwear companies in Vietnam face limitations in capital, techniques and technology, and materials. They are also largely dependent upon foreign customers.

MoIT has predicted that exports will expand in the last quarter of the year, with year-end holidays and festivals in Europe and the Americas.

The sector’s target of 24 billion USD in export revenue is within reach, but repositioning in global supply chains in the future may help Vietnam’s leather and footwear sector further increase its market share./.

BTA