Hwaseung Vina Co., Ltd (Vietnam)

Hwaseung Vina Co., Ltd is a wholly owned subsidiary of Hwaseung Enterprise Co., Ltd, which is a global enterprise, headquarters in South Korea, and manages many companies across four segments including Footwear; Apparels & Accessories; Materials; and Supply Chain Solutions. The subject specializes in processing kinds of sports shoes, sports sandals and shoe parts for world class famous brands such as Reebok and Adidas. Besides, it also manufactures EVA compound and EVA sheet. The materials for production are imported from China, South Korea, Cambodia, Indonesia, USA, Taiwan, Germany, Hong Kong, etc. Most of the products are exported to South Korea, China, Germany, Brazil, etc.In early 2023, according to the Vietnam Leather - Footwear - Handbag Association (LEFASO), the leather and footwear industry aimed to achieve an export turnover of USD 27 billion for the whole year, an increase of about 10% compared to the previous year.  However, from the end of 2022 to early 2023, the global economy was weakened, aggregate consumer demand declined, and inflation increased in developed countries, especially in countries that are Vietnam's main export markets such as the United States, the EU, China, etc. Along with that, maintaining tight monetary policy and high inventory levels caused import orders from these markets to decline, strongly affecting the import-export activities of many industries, including footwear. Businesses are facing a serious shortage of orders, up to 30-50% for traditional markets, especially the two markets accounting for 70% of Vietnam's leather and footwear export turnover, the United States and the EU decreased by 35% and 13% respectively.  Orders have shrunk and exports have not yet predicted a recovery time, forcing businesses to cut labor continuously. The figure of USD 27 billion in export turnover for the whole year of 2023 is clearly impossible in this context, when by the end of August the leather and footwear industry had not yet reached the USD 16 billion mark. It is forecast that the difficult situation will continue until the first quarter of 2024. However, the market has had many positive signals for the leather and footwear industry.