Tong Hong Tannery (Viet Nam) Joint Stock Company (Vietnam)

The subject specializes in manufacturing and trading leather (suede and PU-coated leather). All finished products are exported to many foreign markets like Hong Kong, Taiwan, South Korea, China, Indonesia, Cambodia, USA… Its main customers are the large footwear brands in the world.The subject is one member of Tong Hong Tannery Group. Founded in 1990, Tong Hong Tannery Group has become a large split leather producer in the world with production bases in Vietnam, China and Indonesia. The production capacities of factories in Vietnam & China are 4 million SF per month for suede and PU-coated leather and Indonesia's monthly capacity is 4 million SF of PU-coated leather.Recently, the global economic recession has had a clearer impact than ever when most economies in the world have lower growth rates than expectations due to a decline in aggregated demand (especially in USA and EU countries). This is reflected by a serious drop in orders of footwear processing companies in Vietnam in 2023. Most noticeably, geopolitical tensions will continue to worsen the current crisis and the purchasing power is hard to recover. As a part of the supply chain in the footwear industry, the subject's outlook is not too optimistic.