Vietnam is starting to dominate its Asian neighbors in the global production of Nike shoes — 41% of which were made in Vietnam last year (up from 39% the year before). China’s share declined a percentage point to 32%. The only other country that exports large numbers of Nikes is Indonesia, which accounted for 25%.
No doubt this is a sign of things to come as large companies like Oregon-based Nike, with $24 billion in annual sales, shift production from China to Southeast Asia and especially Vietnam, where manufacturing is cheaper through contract companies based in Taiwan and elsewhere.
Nike’s latest regulatory filing, as reported by the Oregonian, showed US sales declined from 43% to 42% even though the company had more retail stores (384) in the US — whereas revenue increased 26% in emerging markets.
The Nike filing suggests Vietnam is not only an inexpensive manufacturer for Nike but also for hundreds of other manufacturers — and a significant future consumer of their products.
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