EN
On the morning of April 25, at the TBS Group Zone II Office in Thuan An City, Binh Duong province, TBS Group and the Vietnam Leather, Footwear and Handbag Association (Lefaso) welcomed Minister of Industry and Trade Nguyen Hong Dien for a working visit.
Minister Nguyễn Hồng Diên and the delegates visited the Handbag R&D Center of TBS Group.
The working delegation from the Ministry of Industry and Trade, led by Minister Nguyen Hong Dien, met with the Vietnam Leather, Footwear and Handbag Association. The meeting was attended by representatives from various departments within the Ministry, including the Office of the Ministry, and the Departments of Industry, Import and Export, Local Industry and Trade, and Trade Remedies. Also present were representatives from the Departments of Planning and Finance, Domestic Market, and Science and Technology; the General Department of Market Surveillance; and the National Competition Commission.
Representing the Vietnam Leather, Footwear and Handbag Association were Mr. Nguyen Duc Thuan, Chairman of the Association, and Ms. Phan Thi Thanh Xuan, Vice Chairwoman, along with representatives from various companies in the industry. The meeting focused on analyzing and evaluating the current production and business situation, as well as the challenges that the Vietnamese leather and footwear industry is facing.
During the visit, the Ministry’s delegation toured the ICD area, which is slated to become a trading center for fashion industry materials, and the R&D center at TBS Group’s Handbag office.
Mr. Nguyen Duc Thuan, Chairman of the Vietnam Leather, Footwear and Handbag Association and Chairman of the Board of Directors of Thai Binh Investment Joint Stock Company (TBS Group), presented a plan to Minister Nguyen Hong Dien for the proposed construction of a transaction center for developing raw materials and accessories for Vietnam’s fashion industry in Binh Duong.
Minister Nguyen Hong Dien visited the TBS Logistics warehouse.
Minister Nguyen Hong Dien toured the raw materials and accessories area for handbag production at the TBS Handbag Factory.
Minister Nguyen Hong Dien visited the automated production center and the R&D area for the handbag industry.
The research and development room for the handbag industry.
Reporting to the delegation, Ms. Phan Thi Thanh Xuan, Vice Chairwoman of Lefaso, stated that Vietnam is currently the third-largest footwear producer in the world, after China and India, and the second-largest exporter.
In 2023, the Vietnamese and global footwear industry was heavily impacted by the global economic downturn. It faced a series of challenges, such as a reduction in orders and high input costs, which forced businesses to scale back production. However, companies in the industry made a concerted effort to overcome these difficulties, with export turnover reaching approximately 24 billion USD in 2023, contributing significantly to Vietnam’s overall export growth.
Notably, according to the association’s statistics, in the first quarter of 2024, the industry’s total export value reached 5.6 billion USD, an increase of 10% over the same period. The top five export markets—the U.S., the E.U., China, Japan, and South Korea—accounted for 80% of the total export turnover. In particular, the leather and footwear sector has effectively leveraged free trade agreements (FTAs), especially with markets under the EVFTA and CPTPP.
Despite this success, Ms. Xuan noted that the leather and footwear industry still faces major challenges that need to be addressed. The biggest bottleneck, she said, is the supply chain for materials and accessories.
Furthermore, major importing countries are introducing a series of new requirements regarding social and environmental responsibility for imported products. For example, in the E.U., starting in March 2024, new regulations for imported leather, footwear, and handbags require eco-design principles linked to sustainable design. This includes EPA regulations that hold manufacturers responsible for the product’s lifecycle and recyclability. Supply chain sustainability audits are also being enforced for companies with sales of 450 million euros and over 1,000 employees, as well as requirements for supply chain traceability and transparency. If materials are imported from other countries, businesses will need to be transparent about the entire production process in their manufacturing area.
According to Ms. Xuan, leather and footwear is a key export commodity for Vietnam. With 15 signed FTAs, Vietnam has access to and established trade relations with nearly 230 markets. Therefore, policy changes in importing markets will have a strong impact on businesses in the industry.
Consequently, exporting countries, including Vietnam, must quickly improve and be transparent about their product supply chains, starting from the raw materials, and moving toward sustainable production, a circular economy, and a strong sense of social and environmental responsibility.
Minister Nguyen Hong Dien held a meeting with the Vietnam Leather, Footwear and Handbag Association.
In his address, Minister of Industry and Trade Nguyen Hong Dien stated that the leather and footwear industry is one of the top 10 export sectors with a turnover of over 10 billion USD. In its highest-performing year, leather and footwear exports reached 28 billion USD, accounting for 7-8% of the country’s total export turnover and providing employment for approximately 1.6 million workers with high incomes.
According to Minister Nguyen Hong Dien, this is a high-turnover export sector and therefore requires strong policy mechanisms to ensure its development.
Based on this, Minister Nguyen Hong Dien requested leaders of the various departments within the Ministry of Industry and Trade to discuss and provide feedback on two key issues.
“Drawing from practical experience both domestically and internationally, the relevant units must discuss and find solutions for the development of the leather and footwear industry,” Minister Nguyen Hong Dien requested.
As a leading company in the Vietnamese leather, footwear, and handbag sector, TBS Group is a pioneer in the journey toward green and sustainable development. The group has quickly researched and applied innovative, environmentally friendly solutions to its production and business operations, such as the widespread installation of solar power systems and an optimized production process that reduces hazardous chemicals and waste throughout the system.
Furthermore, TBS Group places great emphasis on strict management of its materials and accessories, ensuring high quality and environmental friendliness. An internationally standardized management system is in place to ensure clear origins. The group prioritizes reputable domestic suppliers who meet criteria for quality, reasonable prices, and environmental sustainability.
