Vietnam remains Nike’s largest manufacturing hub amidst rising trade pressures
- gamlthvietdata
- 3 days ago
- 2 min read
As of the end of January 2025, 98 of Nike’s manufacturing and supply partners have set up operations in Vietnam, managing a total of 162 factories and employing over 493,000 workers. According to Nike’s FY2024 Annual Report (ending May 31, 2024), Vietnam remains the American sportswear giant’s largest production base globally.
With the U.S. President proposing a 46% retaliatory tariff on Vietnam (currently pending negotiation), companies like Nike—heavily reliant on Vietnamese production—face rising costs, potential declines in revenue, and shrinking profit margins.
Footwear Manufacturing
In FY2024, Nike operated 96 footwear factories across 11 countries, managed by 15 entities. Among them, the four largest unnamed contractors were responsible for 57% of Nike’s total footwear output.
Vietnam, Indonesia, and China were Nike’s top three footwear manufacturing bases, accounting for 50%, 27%, and 18% of production respectively—together comprising 95% of Nike’s total global shoe production in the fiscal year.
Apparel Production
Nike maintained 285 apparel factories in 33 countries in FY2024, run by 68 different entities. Of these, the top five manufacturers (also unnamed) produced 51% of Nike’s total apparel output.
Vietnam remained Nike’s largest apparel manufacturing hub, contributing 28% of global production, followed by China (16%) and Cambodia (15%).
Vietnam's Role and Key Partners
Nike’s manufacturing data as of January 2025 confirmed Vietnam’s central role across three primary product lines: apparel, equipment, and footwear. Although detailed export figures were not provided, it is evident that Nike’s production in Vietnam significantly contributes to the country’s over $24 billion in textile and footwear exports to the U.S. in 2024.
Nike’s major manufacturing partners in Vietnam include: Huali, Taekwang, Feng Tay, Chang Shin, Pou Chen, Ching Luh, Far Eastern, Paiho, Avery Dennison, Regina Miracle
Among the factories serving Nike with over 10,000 employees, Việt Tiến Garment Corporation is the only Vietnamese-owned enterprise of such scale. However, in Nike’s disclosures, the Việt Tiến group is listed under a Malaysian textile conglomerate that currently holds nearly 15% ownership of Việt Tiến. Notably, over 40% of Việt Tiến’s revenue comes from this single partnership.
Most of Nike’s partner factories in Vietnam are concentrated in the southern provinces, such as Bình Dương, Cần Thơ, Đồng Nai, Ho Chi Minh City, Long An, Tây Ninh, Tiền Giang, and Vĩnh Long.
Nike reported $51.36 billion in revenue for fiscal year 2024. Its cost of sales stood at $28.48 billion, accounting for more than half of total revenue. Selling and administrative expenses totaled $16.58 billion, including:
$4.29 billion on marketing and demand generation
$12.29 billion in general overhead costs
These figures resulted in net income of $5.7 billion, marking a 12% year-over-year increase.
(According to Market Times)
Comments