From the U.S. to the Middle East, Africa, and Latin America: Vietnamese Enterprises Seek New Paths

EMERGING MARKETS – NEW CONSUMPTION DRIVERS

UAE and Saudi Arabia: Gateways to the Middle East

The United Arab Emirates (UAE) is emerging as a major logistics and re-export hub in the Middle East. Its open economy, modern infrastructure, and young population make it an attractive destination for fashion footwear products. According to the Ministry of Industry and Trade, Vietnam’s exports to the UAE reached over USD 900 million in 2024, with consumer goods accounting for a growing share.

Saudi Arabia—the largest economy in the GCC region, with nearly 36 million people—is witnessing dramatic shifts in consumer behavior. Data from the WTO Center – VCCI shows that a rapidly expanding middle class, coupled with a booming retail sector, has generated strong demand for fashion items, footwear, and accessories.

Brazil and Mexico: Opportunities in Latin America

Brazil, with a population of over 210 million, is South America's largest economy. In 2024, Vietnam’s exports to Brazil exceeded USD 2.5 billion—up 17% from the previous year—with footwear being a growing category. Brazilian consumers favor stylish yet affordable fashion products, which aligns well with Vietnam’s strengths.

Mexico, home to nearly 130 million people and a member of the CPTPP, is a key entry point for Vietnamese goods into North America. Thanks to CPTPP, Vietnamese footwear—especially those made from synthetic materials and rubber—benefits from reduced or zero tariffs when entering the Mexican market.

Egypt and Africa: Untapped Potential

Africa is increasingly seen as the "new frontier" of global trade. With a young population, rapid urbanization, and a modernizing consumer culture, the continent presents major opportunities. Egypt, with over 110 million people and a strategic location linking three continents, is a priority target for Vietnamese firms aiming to enter Africa.

At the 2024 Vietnam–Africa Trade Promotion Forum organized by the Ministry of Industry and Trade, many experts highlighted that the leather and footwear sector holds significant growth potential in Africa over the next five years—if companies can timely capture consumer needs and adjust their marketing strategies accordingly.

VIETNAM’S COMPETITIVE ADVANTAGE

The aforementioned emerging markets share common traits: youthful demographics, a growing middle class, rapid urbanization, and a rising demand for fashion-oriented consumption. These conditions favor Vietnamese products, particularly leather and footwear, known for skilled craftsmanship, competitive prices, diverse designs, and fast production.

Furthermore, Vietnam’s participation in a wide range of free trade agreements—CPTPP, EVFTA, UKVFTA, and a future FTA with the UAE—gives local enterprises a significant tariff advantage when entering these new markets.

FROM TRADITIONAL THINKING TO REGIONAL STRATEGIES

Instead of relying solely on the U.S. market, many Vietnamese footwear and handbag manufacturers are developing region-specific and segmented market strategies. The old mindset of "one product for many markets" is being replaced with "one market, one tailored strategy."

In regions like the Middle East or Africa, the challenge is not just gaining entry, but achieving product sustainability within the local consumer ecosystem. Companies are gradually moving from pure OEM models to creating product lines that reflect local cultural aesthetics, with adapted designs, pricing, and distribution strategies.

In addition, cross-border e-commerce, paired with localized distributor networks, is becoming an effective option to reduce costs, test markets, and collect consumer insights. Some firms are now applying data analytics platforms to fine-tune marketing strategies by region, enhancing competitiveness as these new markets evolve rapidly in terms of consumer trends.

Successful transformation requires methodical investment—from market research and culturally literate workforce development to flexible supply chains. This is no longer an experimental move, but a long-term strategy for pioneering businesses ready to adapt to the "new rules" of global trade.

IT’S TIME TO EXPAND THE “BASKET OF EGGS”

Overreliance on traditional markets is no longer a safe strategy in today’s volatile trade environment. Diversifying export markets not only mitigates risks from policy barriers—like the U.S.’s reciprocal import tariffs—but also opens up opportunities to expand production capabilities and build the Vietnamese brand in emerging economies.

Enterprises that are bold enough to explore, invest for the long term, and swiftly adapt to global consumption trends will be the ones leading the next wave of international expansion for Vietnam’s leather and footwear industry.

By Hoang Van