Việt Nam's leather bag industry was on course for a strong recovery as more international fashion brands were valuing the country as an important part of the global supply chain.

Many Vietnamese leather producers had secured enough orders to keep production running until the end of the year. This was due in no small part to the country's successful effort to contain and fight off the COVID-19 pandemic.

In addition, the country has become a popular destination for foreign investment after signing a number of historic trade deals such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA). A recent survey by LEFASO showed that more than 40 per cent of international buyers said they were either placing additional orders or planning to do so in the near future. 

As a result, Việt Nam's localisation ratio among leather producers has seen an improvement to average 30-40 per cent, with key export products including sportswear and footwear up to over 50 per cent. 

"As we enter the last quarter of the year, there have been many positive signs of a strong recovery for leather bag makers," Xuân said. 

Leather bag manufacture have also been recruiting additional workers as production starts kicking back into high gear.

Việt Nam has over 800 bag factory with a total production capacity of  400 million bags a year.