Exports from Vietnam's leather and footwear sector reached more than 2.45 billion USD in August, down 9% from July but up 3% from a year earlier, according to preliminary statistics.

In the first eight months, total exports rose by 2.4% year-on-year to 19.54 billion USD.

Footwear exports reached an estimated 16.20 billion USD, up 1% from the same period last year, while exports of handbags, suitcases and umbrellas rose by 12% to 3.34 billion USD.

The US was the largest market, importing 6.46 billion USD worth of footwear and 1.55 billion USD of handbags, suitcases and umbrellas during the period.

The EU was the second-largest market, with exports rising by 4% to nearly 5 billion USD.

Exports to some smaller EU markets grew strongly, including France, Luxembourg and Denmark, which rose by 10%, 61% and 33%, respectively. Exports to Germany, however, fell by 5%.

Shipments to Japan and China declined, contributing to weaker exports to markets covered by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), despite preferential tariffs under the agreements.

The figures point to a growing reliance on the US and EU markets, while weaker demand in some regional markets underscores the need for exporters to diversify markets and make better use of trade agreements, according to industry assessments.

The foreign-invested sector continued to dominate exports. Its footwear and handbag exports exceeded 15.5 billion USD in the first eight months, including 13.23 billion USD in footwear and 2.35 billion USD in handbags.

This sector accounted for about 80% of the industry's total export turnover last year, when exports reached 22.82 billion USD, up 17% from 2024.

To meet its full-year export target of 29-30 billion USD, the sector would need to average more than 2.5 billion USD in monthly exports during the final four months of 2026./.