Vietnam officially surpassed China to become the main production place for Nike shoes.
CNBC news agency quoted the newly released financial report of the sports company Nike as saying that in 2021, Vietnam's shoe production for Nike accounts for 51%, while this rate in China has dropped to 21%. In 2006, China produced shoes for Nike at 35%.
The report also said that Indonesia also surpassed China in the production rate of Nike shoes with a figure of 35%.
In fact, Nike is not the only representative to move factories from China to Vietnam. Even their biggest rival, Adidas, is moving in a similar direction, with 40% of its footwear production being made in Vietnam.
Why has Vietnam surpassed China to become the largest Nike shoe producer?
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Nike Air Max
According to a representative of the Vietnam Leather, Footwear and Handbag Association, Nike branded products are supplied by 191 manufacturing factories located in 14 countries around the globe. In particular, most of Nike's footwear products are manufactured outside the US through more than 15 independent contract manufacturers. Before 2010, China was the largest manufacturer of Nike footwear, but has since been replaced by Vietnam.
Talking to Lao Dong, Ms. Phan Thi Thanh Xuan - Vice President and General Secretary of the Vietnam Leather - Footwear - Handbag Association, the reason why Vietnam has become the largest Nike shoe producer in the world is because Vietnam has human resources are abundant. "The potential from the abundant labor force is the factor that attracts Nike to choose Vietnam," said Ms. Xuan.
Besides, according to Ms. Xuan, the processing quality of Vietnamese footwear products is quite good, meeting strict requirements from partners.
"In recent years, a number of enterprises in the footwear industry have invested in modern machinery and equipment, automating some production stages, thereby improving labor productivity and product quality." Ms. Xuan said.
In fact, the 4th wave of disease in Vietnam has affected Nike's production quite a lot. There was a time when major Nike shoe suppliers in Vietnam had to temporarily close to prevent the COVID-19 epidemic from causing disruption. Factories in Vietnam then reopened in mid-September 2021.
With a strategy of living safely against the epidemic and high vaccine coverage in Vietnam, Nike's leadership still believes and is optimistic about the uninterrupted supply chain. Currently, Nike factories in Vietnam have returned to normal operations and fulfilled orders in 2022.
<p>Việt Nam chính thức vượt Trung Quốc để trở thành nơi sản xuất chính cho giày Nike.</p>
vietnamnet.vn