Vietnam remains largest manufacturer of Nike products

August 26, 2024 | 18:41

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Vietnam is the largest manufacturer of Nike footwear and apparel products for a second year in a row, according to Nike's report for fiscal year 2024 ending May.

Vietnam remains largest manufacturer of Nike products

Nearly all of Nike footwear and apparel products are manufactured outside the US by independent contract manufacturers, many of which operate multiple factories.

Nike is also supplied, primarily indirectly, by a number of materials, or 'Tier 2' suppliers, who provide the principal materials used in footwear and apparel finished goods products. As of May 31, Nike had 169 strategic Tier 2 suppliers.

Regarding footwear, Nike's contract manufacturers operated 96 finished goods footwear factories located in 11 countries. Nike brand footwear finished goods were manufactured by 15 contract manufacturers, many of which operate multiple factories.

Among them, factories in Vietnam manufactured approximately half of all Nike brand footwear. China and Indonesia come in behind with 27 per cent and 18 per cent, respectively.

Similarly, Nike's contract manufacturers operated 285 finished goods apparel factories located in 33 countries. For fiscal year 2024, Nike brand apparel finished goods were manufactured by 68 contract manufacturers, many of which operate multiple factories.

Factories in Vietnam, China, and Cambodia manufactured approximately 28 per cent, 16 per cent, and 15 per cent of total Nike brand apparel, respectively.

Vietnam became Nike’s largest manufacturing hub last year, producing 50 per cent of the company’s footwear, more than any other country in the world. Vietnam is also the largest producer of Nike apparel, contributing 29 per cent to the brand’s global output.

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Foreign footwear producers are maintaining their commitment to sourcing products from Vietnam as factories enjoy resumption of production following heavy delays and restrictions.

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Rumours that Nike and Adidas would move production out of Vietnam in August and September were rebutted by the Vietnam Textile and Apparel Association (VITAS) as the brands do not own any plants in the country.

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By Thanh Van

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