Vietnam’s National Statistics Office reports that during the first half of 2025, the country’s leather and footwear industry had a more than 10% increase in exports. Handbags and associated goods brought in around $2.2 billion, up 11.6%, while footwear exports totaled over $12 billion, up 10.1%.

With 1.4 billion pairs produced annually, Vietnam ranks third in the world for leather and footwear production, behind China and India. With an annual shipment of 1.3 billion pairs worldwide, it ranks as the second-largest exporter. In addition to a low-cost worker force that makes between $181 and $200 per month on average, the business also benefits from 16 free trade agreements with important markets.

The industry produced $26 billion in 2024, a 10% increase over the year before, despite labor disputes, rising material costs, and pricing challenges. By 2025, the industry hopes to increase by 10% and export $29 billion.

To achieve this ambitious target, companies are accelerating the shift towards green and circular production models, enhancing environmental sustainability, and increasing the localisation rate of raw materials to meet increasingly stringent standards in key markets such as the EU and the United States.

Vietnamese footwear and handbags are exported primarily to core markets including the US, the EU, South Korea, China, and the UK. Among them, the US remains the largest importer, with 2024 export turnover reaching nearly $8.3 billion, a remarkable 15.6 % increase. Over the years, Vietnamese footwear has been subject to a 10% export tax when entering the US market. The US presence in Vietnam’s footwear manufacturing sector is notable, with many American brands operating production facilities in the country.