Young Il Vietnam Co., Ltd (Vietnam)

Founded in 2013, the subject specializes in manufacturing and processing leather from semi-processed leather. Its factory now can produce more than 3,800 tons of products/month. As revealed, most of its products are supplied to shoe brands such as Nike, Adidas, Reebok, New Balance, etc., or handbag manufacturers (Coach...). About 30% of products are served the South Korean companies in Vietnam.According to the Vietnam Leather, Footwear and Handbag Association (LEFASO), the leather and footwear industry is striving to achieve USD 27 billion in export turnover in 2023, a 10% increase year on year. However, currently, a large amount of raw materials still have to be imported.According to the Ministry of Industry and Trade's report in the first 9 months of 2023, footwear export turnover reached USD 14.86 billion, down 18.2% over the same period last year. If the year 2022 was considered a quite successful year in export activities of the entire leather and footwear industry, then in 2023 the market situation worsened significantly, directly affecting the export results of the industry right from the first months of the year.  Although new generation FTAs (such as EVFTA and UKVFTA, RCEP... ) are contributing to supporting the promotion of footwear exports in the EU, the UK, China, and ASEAN markets, most of the world's economies all have lower growth than expected due to a decline in aggregate demand, and footwear exports in 2023 are unlikely to grow. Thus, the figure of USD 27 billion in export turnover for the whole year of 2023 was impossible in this context.In the fourth quarter of 2023, the export turnover of Vietnam's leather and footwear improved, but there were still many difficulties. Orders received by leather and footwear enterprises nationwide have increased by 10-20% compared to the first half of the year, but have not yet returned to the level of the beginning of 2022. According to the Vietnam Leather, Footwear and Handbag Association, In the three construction scenarios for that year, the industry was in the medium scenario and recovered in the fourth quarter of 2023, but export growth for the whole year decreased by about 7.5% compared to the previous year. It is forecast that the difficulties of Vietnam's leather and footwear industry will last until nearly mid-2024.According to the chief accountant, the subject is facing common industry challenges in terms of decreasing orders. However, the subject still tries to maintain the number of employees ranging from 1,100-1,300 depending on the time. In the last months of 2023, the company only recruited more professional positions to serve production management and order tracking, not recruiting additional workers. Given the general situation of the industry, business results in 2023 may not be as stable as in 2022. Therefore, the subject needs to ensure competitiveness and stability of production and export.