Foreign footwear manufacturers are scrapping investment plans in Indonesia, while factories in Vietnam are rushing to adopt automation and slowing new hiring as US tariff measures begin to bite, according to a Nikkei Asia report.
The slowdown in US demand is also pushing Asian producers to look for new markets. However, some American buyers have signalled they do not intend to abandon long-standing suppliers in the region, raising questions over whether the tariffs will achieve Washington’s stated aim of driving manufacturing back to the United States.
Vietnam and Indonesia are the world’s second- and third-largest footwear exporters by volume after China. In 2024, Vietnam exported about 1.58 billion pairs, while Indonesia shipped roughly 601 million pairs; Cambodia also ranked among the top 10 exporters.
Following protracted negotiations, the United States set “reciprocal” tariff rates at 19% for goods from Indonesia and Cambodia, and 20% for goods from Vietnam.