By shipping half of Nike's shoes and nearly a third of its apparel, Vietnam is becoming the global headquarters of the American sports giant.
Vietnam is Nike's largest manufacturer
More than 530,000 workers work for Nike
Recently, according to Nike's 2024 fiscal year report ending in May, the U.S. footwear and sportswear giant's global revenue reached about $51.36 billion.
It is worth noting that Vietnam is still the largest manufacturer of Nike.
As a result, Nike's contract manufacturers operate 96 finished shoe factories in 11 countries. Among them, Vietnam accounted for 50% of the total number of Nike brand shoes, followed by China and Indonesia, accounting for 27% and 18% respectively. These numbers are unchanged from FY2023.
In apparel, Nike contract manufacturers operate 291 finished product factories in 31 countries.
Among them, the output of Vietnamese factories accounts for 28% of the total, which is the largest output among countries. Nike's other top apparel manufacturers are China and Cambodia, with 16 percent and 15 percent, respectively. Vietnam's figure is down from 29% in fiscal year 2023.
In fact, the three pillars of Nike's product line - shoes, apparel and equipment - are all manufactured in Vietnam. Including Converse and Nike brand products.
Nike's biggest investment in Vietnam is in the apparel industry, with 71 factories producing clothing for the sports giant. These factories are mainly located in southern Vietnam, but a few are scattered in other parts of the country.
In addition, there are 13 factories producing sports equipment for Nike, of which 11 factories are located in southern Vietnam and two factories are located in northern Vietnam. Vietnam is also a major footwear manufacturer for Nike. There are 13 factories across the country that make everything from running shoes to sports shoes.
Currently, Nike has 155 factories on its supplier list in Vietnam. Most of these factories are located in southern Vietnam. They are mainly located in and around Ho Chi Minh City.
For nearly two decades, Nike and Vietnam have been closely linked. Vietnam is currently a major production center for Nike products, with more than 530,000 workers working in factories that supply the sportswear giant.
Source: diendandoanhnghiep
Photo: Screenshot of the Vietnamese media
Nike and Adidas
Vietnam has been selected as the main production base
Nike also provides training and experience to thousands of Vietnamese workers.
This creates a garment manufacturing workforce that is very familiar with the industry, which can benefit foreign brands in the garment and textile industry that want to start manufacturing in Southeast Asia. At the same time, Nike can also reduce production costs and bring value to its consumer base.
This mutually beneficial relationship has grown stronger in recent years. As the two entities continue to grow together, this relationship will only grow stronger.
Vietnam has become an important part of Nike's supply chain.
According to ResearchAndMarkets, Nike and Adidas, the two giants of the global shoe industry, have chosen Vietnam as their main production base.
Due to the lower cost and advantages of the Free Trade Agreement (EVFTA) and the Trans-Pacific Partnership Agreement (CPTPP) signed between Vietnam and the European Union, a part of the global footwear chain is gradually shifting from China to Vietnam.
However, experts from ResearchAndMarkets said that although Vietnam has signed many agreements with developed countries to promote exports, the strength of Vietnamese companies is still weak, and the main market share is being taken by foreign companies.
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