Some of the world’s leading footwear firms are increasingly turning to Vietnam as a place to invest in manufacturing and development.
Both Nike and Adidas are said to be focusing more on the SE Asian country as costs in China continue to rise, and standards in Vietnam maintain their high level.
According to Nguyen Duc Thuan, chairman of the Vietnam Leather, Footwear and Handbag Association (LEFASO), companies are increasingly attracted by low costs of production while the possible decision by the US to increase taxes on Chinese footwear and clothing is also playing a part. Adidas is also increasing its investment in Vietnam, where it expects to make half of its footwear there by next year, up from 44% in 2017.
In addition, Puma now makes over 30% of its leather products in Vietnam, taking advantage of a skilled workforce and improve supply chains that make shipping a better bet.
