Vietnam remained the biggest supplier of the U.S.-based footwear and apparel giant Nike in fiscal year 2023 ending May 31, according to a Nike report.
For footwear, Vietnam was the top manufacturer, accounting for 50% of Nike’s total output. Other major producers were Indonesia with 27% and China with 18%.
Vietnam’s performance was an improvement from 44% in fiscal year 2022, during which the Covid-19 pandemic heavily impacted the country. The figures were 51% in fiscal year 2021 and 50% in fiscal year 2020.
As of the end of May, 15 contract footwear manufacturers of Nike were operating 123 factories in 11 countries.
Regarding apparel, Vietnam was also the largest producer, making 29% of Nike’s products, followed by China with 18% and Cambodia with 16%. Vietnam’s figures were 30% in fiscal year 2021 and 28% in fiscal year 2020, Nike added.
As of the end of May, Nike was operating 55 apparel contract manufacturers with 291 factories in 31 countries.
Nike noted that most raw materials for the manufacturing of its footwear, apparel, and equipment products are available and purchased by contract manufacturers in the countries where the manufacturing takes place.
In fiscal year 2023, Nike recorded a post-tax income of $5.07 billion, down 16% year-on-year, on a revenue of $51.2 billion, up 10%, according to the firm’s financial statement.
Footwear and apparel-textiles are major products of Vietnam’s export-driven economy. Vietnam posted export revenue of $227.71 billion, down 10% year-on-year, in the first eight months of this year, according to the General Statistics Office.
Of which, apparel-textiles was the fourth-biggest cash earner with $22.35 billion, down 15%, followed by footwear with $13.49 billion, down 17.6%.