“VNA” reported on December 18 that Vietnam’s leather footwear industry has been one of the industries hardest hit since the outbreak of the new coronavirus epidemic. Previously, when Europe was unblocked, orders began to pick up in October. However, the new crown epidemic caused many European countries to block again, making Vietnamese leather footwear companies anxious.
The Ho Chi Minh City Leather and Footwear Association said that if the blockade is extended, new orders received by companies will be at risk. If borders are closed, order cancellations or delayed deliveries will return. The EU is an important traditional export market for Vietnam’s leather footwear. In addition, in anticipation of the Vietnam-EU Free Trade Agreement, many companies have invested in machinery, technology and design to create competitive advantages and increase market share. However, due to the complicated evolution of the COVID-19 epidemic and restrictions on trade activities, market demand has also dropped sharply. Europe’s second lockdown could scupper efforts to use the year-end holiday season to push for a resumption of production and export activity, with companies struggling to find new orders after falling market demand.
According to the Vietnam Leather Footwear Association, Vietnam’s leather footwear export target is US$24 billion in 2020, a year-on-year increase of 10%. However, due to the severe impact of the COVID-19 epidemic, order volume has dropped by nearly 60% so far. </p
