Pou Chen Vietnam Enterprise Ltd (Vietnam)

The subject is known as one of the members in Vietnam of POU CHEN GROUP - one of the world's leading shoes group based the headquarters in Taiwan. POU CHEN VIETNAM ENTERPRISE LTD specializes in processing shoes for the NIKE brand. Its products are being exported to Taiwan, the USA, the EU, 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 faced 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. 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.However, according to the Vietnam Leather, Shoe, and Handbag Association in the last months of the year, the order situation of companies has improved, many partners have returned to placing orders. The reason for the recovery in signing orders is that long-standing inventories of brands have decreased and the market is preparing to enter the year-end shopping period. According to press information, the subject recently had orders again. Some parts of the company have to work overtime.