Vietnam is rapidly becoming one of the key manufacturing hubs in the global footwear industry, particularly for major brands like ASICS. A little-known fact is that ASICS, the Japanese sportswear giant, currently works with three times more factories in Vietnam as it does in China.
This shift not only highlights Vietnam’s growing importance in ASICS’s global supply chain but also reflects the country’s significant rise in the footwear manufacturing sector.
The History of ASICS
Founded in 1949 in Kobe, Japan, by Kihachiro Onitsuka, ASICS was originally named Onitsuka Co., Ltd. The company started with a focus on basketball shoes but gradually expanded its product range to become a global leader in athletic footwear.
With innovations like the GEL™ cushioning system and FlyteFoam (lightweight foam), ASICS has maintained a strong competitive edge in the sports footwear market, competing with other major brands such as Nike and Adidas.
ASICS’s Global Manufacturing Network
In its efforts to diversify production and reduce costs, ASICS began expanding globally in the 1980s. The company initially set up manufacturing plants in the United States, Taiwan, South Korea, and later in China and Indonesia, seeking out regions with lower labor costs. However, over time, Vietnam has emerged as a crucial production hub in ASICS’s global supply chain.
According to ASICS’s supply chain report from January 2024, Vietnam now boasts 37 factories, ranking second after China, which has 55 factories. Notably, 14 of these 37 factories in Vietnam specialize in footwear production, an impressive number compared to only 4 footwear factories in China serving ASICS.
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Why ASICS Chooses Vietnam
Vietnam’s appeal as a manufacturing destination for ASICS can be attributed to several factors. The country’s competitive labor costs play a significant role, with average wages in footwear production ranging from $1.50 to $2.00 per hour—significantly lower than $6.50 per hour in China. This cost advantage has encouraged many global footwear companies, including ASICS, to shift production to Vietnam, optimizing their supply chains while maintaining high quality standards.
Vietnam’s manufacturing facilities, primarily located in provinces such as Binh Duong, Binh Phuoc, and Dong Nai, are home to key ASICS suppliers like Pouyuen Vietnam, Shyang Ying, Beesco Vina, and Dean Shoes. These factories handle the production of footwear, apparel, and accessories for the global market.
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Vietnam’s Role in the Global Footwear Industry
Today, Vietnam ranks as the second-largest exporter of footwear in the world, trailing only China. In 2023, the country produced approximately 332.1 million pairs of shoes, contributing over $20.2 billion to the global footwear market. Vietnamese footwear exports account for about 10% of the total global footwear exports. With ongoing trade agreements and improving infrastructure, Vietnam is poised to increase its footwear export value to $27-28 billion by 2025 and $38-39 billion by 2030.
Vietnam is not only a key supplier of finished footwear but also plays a vital role in the global supply chain by providing raw materials and components. Local factories produce rubber, shoe soles, plastics, and other essential components used in global footwear manufacturing, solidifying Vietnam’s position as a crucial part of the footwear production ecosystem.
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Sustainability Initiatives and the Future
In response to the growing demand for sustainable products, ASICS has committed to environmental protection efforts in its manufacturing process. In 2023, several ASICS suppliers in Vietnam and Indonesia installed rooftop solar systems to reduce reliance on traditional energy sources and lower carbon emissions.
These initiatives not only help ASICS meet its target of sourcing 85% renewable energy from its suppliers by 2030 but also reflect Vietnam’s commitment to green manufacturing.
Challenges and Prospects
Despite its growing importance, Vietnam’s rise as a footwear manufacturing hub does not come without challenges. It requires the workforce to adapt quickly to high-tech equipment, creating a divide between factories that can invest in advanced machinery and smaller operations.
Vietnam is cementing its role as an indispensable manufacturing hub in ASICS’s global supply chain and in the global footwear industry at large. With competitive labor costs, improved infrastructure, and a growing focus on sustainability, Vietnam is on track to become a global leader in footwear production. If you’re looking to partner with reliable footwear manufacturers in Vietnam, the opportunities are vast, and we are here to assist you in sourcing, quality control, and managing your production processes.
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Source: Vietnam Insider