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Nike, Adidas eye Vietnamese market
29/07/2014

(VOV) – In the first half of the year, a number of the world’s leading footwear makers like Nike, Adidas and Puma have shifted their orders from China and Bangladesh to Vietnam.

The Vietnam Leather and Footwear Association (Lefaso) reported that Target Sourcing Services – one of the world’s largest distributors – and Dansu group have conducted surveys in Vietnam and they plan to increase operations in the country.

Other companies which often place manufacturing orders in China like Lancaster and Sequoia Paris are also eyeing investments in Vietnam to avoid risks.

Lefaso said that Timberland and Puma want to expand their operations in Vietnam to meet the increasing demand for orders shifted from China.

Increasing labour and environment costs as well as recent industrial policies in China are creating uneasiness among international brand names, forcing some to move their production bases to other Southeast Asian countries, including Vietnam.

Vietnam is among the top ten global footwear exporters and ranks second among footwear exports to the demanding market of the US.

At a recent seminar on prospects of the garment and footwear sectors in Ho Chi Minh City, Head of the Light Industry Department Phan Chi Dung said to grasp opportunities from free trade agreements (FTA), many foreign investors began developing support industries for the footwear sector in Vietnam, opening a brighter future for the industry.

Foreign companies are speeding up their projects in Vietnam to take advantage of incentives from FTAs and raise profits once these trade pacts are signed, Dung added.

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