Pou Li Vietnam Company Limited (Vietnam)

The subject specializes in producing and processing footwear and accessories. Its factory is located at “Lot 37-9A, 37-10, 37-11, 37-12, 37-13, 37-14A, Phuoc Dong Industrial Park, Phuoc Dong Commune, Go Dau District, Tay Ninh Province, Vietnam” on total area of 120,000 m2 with total production capacity of 6,000,000 pairs/year. Machinery and materials for production are imported from China, Taiwan, etc. 100% of products are exported to USA, Japan, China, Taiwan, South Korea., and so on. We made an interview with a staff of the subject. According to her, under the effects of inflation, world trade conflicts, and lower incomes, in 2022, the factory's production capacity only reached 4.3 million pairs/year. In the first three quarters of 2023, the factory's operating capacity is only above 1/3 of the factory's maximum capacity (equivalent to above 2 million pairs/year). Until now, the company's orders are still few and in a state of shortage. The company's total number of employees is just under 4,000 people, down about 1,000 people compared to pre-recession times.The subject is a member of Pou Chen Group, a footwear and retail business corporation, founded in Taiwan with the abbreviation name "PSG". Currently, PSG has manufacturing factories and retailing sites throughout Taiwan, China, Indonesia, Vietnam, the United States, Mexico, and other areas in Asia. In 2022, this group has produced and shipped a total of 272.7 million pairs of shoes. Indonesia, Vietnam and Mainland China accounted for 46%, 38% and 10% of total shoe shipments, respectively, whereas Cambodia, Bangladesh, and Myanmar accounted for 6%. It is also one of the leading retailers and distributors of sporting goods in the Greater China region, operating 4,093 directly-operated stores and 3,200 sub-distributors as of December 31, 2022, and continues to advance its digital channel development strategy, thereby accelerating the comprehensive linkage and integration of online and offline networks. According to statistics from the General Department of Customs, Vietnam's footwear exports of all kinds in September 2023 earned more than USD 1.33 billion, down by 22.2% compared to the previous month. In the first 9 months of 2023, this item earned USD 14.6 billion, down by 19.1% compared to the same period in 2022.USA, China, and Belgium are the three largest markets for Vietnamese footwear. Specifically, in September, footwear exports to the USA earned more than USD 475 million, down by 32% compared to August. Thus, in the first 9 months of 2023, footwear exports to the USA earned more than USD 5.23 billion, down by 32% over the same period in 2022. Ranked second is the Chinese market, this country spent more than USD 107 million importing Vietnamese footwear in September 2023, down by 51% compared to August. Calculated Overall, in the first 9 months of this year, exporting this product to the billion-people market earned more than USD 1.35 billion, up by 10.3% over the same period.The decline in exports reflects the fact that world demand is shrinking as consumers tighten spending due to the effects of inflation, world trade conflicts, and lower incomes. This makes even big brands in the world such as Adidas, Nike... also have a lot of inventory, thereby reducing order volume from processing factories around the world, not just in Vietnam. Vietnam is currently ranked 2nd in the world in footwear exports with an estimated export volume accounting for 10% of the world's.