Vietnam has overtaken China to become the leading manufacturer of Nike sports shoes.
|Vietnam overtakes China to become the leading manufacturer of Nike sports shoes.|
According to a report by the Central News Agency (CNA) of Taiwan (China), Nike’s financial report indicates that up to 51% of Nike sports shoes were produced in Vietnam last year, while the share of the production in China fell to 21%, down from 35% in 2006.
Along with Nike, Adidas, another big brand in the shoe industry, has also shifted its outsourced work to the Vietnamese market as opposed to China, with around 40% of its shoes now produced locally.
The fourth wave of the COVID-19 pandemic had forced Nike to temporarily close three of its facilities in the country, although they were able to reopen in mid-September 2021.
Nike remains confident that the resumption of local production will boost the company’s future recovery efforts.
“We are increasingly confident that supply will normalize as we approach fiscal 2023,” Matthew Friend, Nike’s chief financial officer, told The Wall Street Journal as factories in Vietnam are returned to service and that production is about 80% of what it was before the shutdown. .
Vietnam seen as a manufacturing hub for global brands
During the fourth wave of the Covid-19 pandemic from June to September 2021, several fashion brands began to gradually shift production and orders out of Vietnam.