In 2024, Vietnam continues to solidify its position as the world’s second-largest footwear exporter, with recent export figures surpassing $20 billion.
The country’s footwear export turnover is projected to rise to $27-28 billion by 2025 and to reach $38-39 billion by 2030, reflecting its growing global influence and significant role in the footwear industry.
This article explores the key factors attracting global brands to Vietnam, highlights ASICS’ strategic presence, and analyzes the opportunities and challenges shaping this dynamic market.
Vietnam’s Role in the Global Footwear Industry
Vietnam’s emergence as a leading footwear exporter stems from several strategic advantages. A skilled workforce adept at producing high-quality footwear ensures precision and efficiency. Competitive labor costs—ranging from $1.50 to $2.00 per hour, compared to China’s $6.50—make Vietnam an attractive alternative for manufacturers.
Its proximity to major global markets, coupled with a robust logistics infrastructure, enhances its appeal for large-scale exports. Furthermore, government support through trade agreements and infrastructure investments solidifies Vietnam’s standing as a global manufacturing hub.
ASICS and Its Vietnam Strategy
ASICS, a global sportswear leader, has recognized Vietnam’s potential, investing heavily in local manufacturing.
The country now hosts 14 ASICS footwear factories, significantly outpacing its four factories in China. Key partnerships with facilities like Pouyuen Vietnam and Shyang Ying ensure access to specialized expertise in high-performance footwear.
Vietnam supports tiered manufacturing, excelling in Tier 1 production (finished products) and Tier 2 operations (materials such as rubber and outsoles), making it an ideal manufacturing base.
Factors Driving the Shift to Vietnam
Global brands like ASICS are increasingly favoring Vietnam due to its competitive advantages:
- Cost Efficiency: Lower labor and operational expenses position Vietnam as a cost-effective alternative to traditional manufacturing hubs.
- Sustainability Initiatives: Vietnamese suppliers are adopting renewable energy systems and meeting global sustainability certifications.
- Reliability: Flexible supply chains and experienced manufacturers ensure consistent quality and timely deliveries.
Industry Growth and Future Prospects
Vietnam’s footwear industry is poised for continued growth, driven by advancements in technology and rising global demand for sustainable products. Automation and artificial intelligence are enhancing production lines, improving precision, and reducing waste. At the same time, the increasing global demand for eco-friendly products is amplifying interest in Vietnam’s sustainable manufacturing practices.
Vietnam’s leather and footwear industry has created jobs for more than 1,5 million workers. Photo of workers finishing shift at PouYuen Co., Ltd. (Binh Tan district, Ho Chi Minh City) finishing shift on the afternoon
While the future looks promising, challenges remain. Smaller factories may face difficulties in adopting automation due to the high upfront costs involved, and stricter environmental regulations will require substantial investment in green practices.
Starting Footwear Manufacturing in Vietnam
Entering Vietnam’s footwear manufacturing sector presents unique opportunities and considerations.
While large Taiwanese and Chinese enterprises dominate with advanced machinery, smaller Vietnamese factories excel in craftsmanship, offering customized solutions.
Minimum Order Quantities (MOQ) typically start at 1,000 pairs, with mold costs ranging from $3,000 to $5,000 USD. While Vietnam produces insoles and outsoles locally, some raw materials still rely on imports.
With strong Tier 1 and Tier 2 capabilities, Vietnam is equipped to meet diverse demands, from simple designs to high-performance footwear.
Conclusion
Vietnam’s footwear industry stands as a testament to the nation’s commitment to quality, innovation, and sustainability. Brands like ASICS have recognized these strengths, positioning Vietnam as a central player in their global manufacturing strategies.
With competitive costs, skilled craftsmanship, and a focus on sustainability, Vietnam continues to offer significant advantages to manufacturers. As the industry grows and evolves, it remains a key hub for both global brands and new entrants looking to leverage the country’s manufacturing capabilities.