Vietnam’s leather and footwear sector posted total exports of 19.54 billion USD in the first eight months of 2026, up 2.4% year-on-year, with the United States and European Union continuing to anchor demand despite uneven performance across global markets.
According to preliminary statistics, exports from the sector reached more than 2.45 billion USD in August alone — down 9% from July but up 3% compared to the same month a year earlier.
Footwear and Handbag Exports Show Diverging Trends
Within the overall export figure, footwear exports accounted for an estimated 16.20 billion USD during the January–August period, reflecting a modest 1% increase over the same period last year. Handbag, suitcase and umbrella exports, however, delivered stronger momentum, climbing 12% to reach 3.34 billion USD.
Vietnam’s footwear and handbag shipments to the US surpassed 8 billion USD in the first eight months of 2026, making the American market the sector’s single largest destination. Of this, footwear imports by the US from Vietnam accounted for 6.46 billion USD, while handbags, suitcases and umbrellas contributed an additional 1.55 billion USD.
US and EU Remain the Dominant Export Destinations
The European Union held its position as the second-largest market, with Vietnam’s leather and footwear exports to the bloc rising 4% to nearly 5 billion USD. Within the EU, growth was particularly strong in select markets — France recorded a 10% increase, Luxembourg surged 61%, and Denmark rose 33%. Germany, however, posted a 5% decline in imports from Vietnam during the period.
Shipments to Japan and China declined over the same period, weighing on exports to markets covered under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership, even with preferential tariff access under both agreements in place. Industry assessments indicate that the data reflect a growing dependence on the US and EU markets, and that weaker regional demand underscores the need for exporters to diversify their market reach and better leverage existing trade agreements.
Foreign-Invested Firms Drive Export Volumes
The foreign-invested sector continued to lead export performance, contributing more than 15.5 billion USD in combined footwear and handbag exports during the first eight months of 2026. This included 13.23 billion USD in footwear and 2.35 billion USD in handbags. Last year, the foreign-invested segment accounted for approximately 80% of the industry’s total export turnover, when full-year exports reached 22.82 billion USD — a 17% increase from 2024.
Target of $29–30 Billion Requires Accelerated Momentum
To achieve the sector’s full-year export target of 29 to 30 billion USD, Vietnam’s leather and footwear industry will need to sustain an average of more than 2.5 billion USD in monthly exports across the final four months of 2026. Vietnam footwear exports will need to maintain consistent shipment volumes to close the gap.
The Vietnam Leather, Footwear and Handbag Association has called for faster development of the domestic supporting industry to reduce dependence on imported raw materials. It has also proposed establishing strategic raw material reserves and dedicated trading platforms to strengthen supply security. Supporting data from the Ministry of Industry and Trade shows that the localisation rate within Vietnam’s broader textile and garment sector covers only about half of the value chain, meaning a significant share of production costs remains tied to imported inputs.
