Vietnam Chingluh Shoes Co., Ltd (Vietnam)

The subject is a member company Ching Luh Group established in 1969 in Taiwan. Up to now, this group has become one of the leading sports footwear manufacturers in the world with manufacturing locations in China, Vietnam and Indonesia. In which, facilities in Vietnam and Indonesia play key roles with the number of total employees of about 35,000 people in each facility. In Vietnam, the subject specializes in manufacturing, processing and developing footwear products for the Nike and Mizuno brands. All finished products are exported to the USA, and EU countries according to the parent company's designation.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. With the current difficult situation of the footwear field, the subject's future is not expected to be brighter. Therefore, the subject's business result in this year is unlikely to have a breakthrough.