Vietnam’s Footwear Sector Targets Canadian and North American Markets Amid Shifting Trade Dynamics

Economic

Summary:

Vietnamese footwear companies are actively pursuing export growth opportunities in Canada and North America through the AFA Canada 2025 Trade Fair, aiming to leverage CPTPP benefits and reduce dependency on the U.S. amid shifting tariff policies...

Strategic Market Diversification in Response to Global Trade Realignments

In the face of evolving global trade structures and heightened tariff uncertainty, Vietnam’s footwear industry is pivoting toward Canada and the broader North American region to diversify its export markets. The participation of 20 leading Vietnamese enterprises in the AFA Canada 2025 Trade Fair marks a significant milestone in the country’s export promotion efforts. Held in Toronto, this is the largest footwear and fashion accessory trade event in Canada and features hundreds of prominent international exhibitors and retailers.

This is the first time Vietnamese businesses have been formally invited to attend the fair, a result of collaborative planning between the Vietnam Leather, Footwear and Handbag Association (LEFASO), Vietnam’s National Trade Promotion Agency under the Ministry of Industry and Trade, and the Vietnamese Trade Office in Canada. Companies in attendance represent key segments across footwear, handbags, raw materials, and related services.

Canadian Market Seen as Strategic Gateway Beyond the U.S.

Michelle Kofman, Secretary-General of the AFA, emphasized that Vietnam’s participation brings valuable insights into the scale and complexity of its manufacturing ecosystem. Her remarks highlight a shift in global sourcing sentiment particularly in Canada where many firms are eager to reduce reliance on the U.S. market. This observation reflects a broader causal trend in trade strategy: geopolitical and tariff tensions with the U.S. are prompting partner countries to strengthen ties with alternative suppliers like Vietnam.

Canada’s footwear market, while smaller than that of the U.S., presents high purchasing power and is deeply integrated with the North American retail supply chain. By showcasing at the AFA Canada fair, Vietnamese manufacturers can position themselves as reliable alternatives for buyers seeking supply chain resilience under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Leveraging CPTPP to Expand Market Access

One of the focal points of the trade fair was a seminar jointly organized by the Vietnamese Trade Office, LEFASO, and AFA Canada. The session explored strategies for maximizing the benefits of the CPTPP, with an emphasis on leveraging tariff preferences and simplifying rules of origin compliance to boost bilateral and regional trade flows.

LEFASO Secretary-General Phan Thị Thanh Xuân reaffirmed that market diversification is not only a government directive but a strategic imperative for the footwear industry. North America currently accounts for over 40% of Vietnam’s total footwear export turnover. While the U.S. remains the dominant destination, Canada and Mexico also CPTPP members offer additional pathways for market penetration, particularly in light of favorable FTA terms.

Government-Backed Trade Diplomacy and Policy Alignment

Participation in AFA Canada aligns closely with the Vietnamese government’s broader directive to respond flexibly to retaliatory tariffs from the U.S. It also supports Resolution 226, which targets GDP growth of 8.3–8.5% through aggressive export expansion and effective use of free trade agreements. These efforts demonstrate how industrial policy and trade promotion are being synchronized to counteract external shocks while capturing long-term growth opportunities.

Trần Thu Quỳnh, Vietnam’s Trade Counselor in Canada, noted that footwear and handbags are among the top ten Vietnamese export categories to the country, with 2024 turnover nearing $1 billion. With current growth trajectories and rising Canadian interest in alternative supply partners, this figure is expected to be surpassed in 2025.

The AFA Canada 2025 Fair is more than a promotional event it is a strategic move in Vietnam’s effort to recalibrate its export model. As trade tensions with the U.S. prompt global shifts in sourcing decisions, Vietnam’s engagement in Canada offers a route to stabilize and scale its exports through the North American corridor. By capitalizing on CPTPP benefits and positioning itself as a high-quality, dependable manufacturing base, Vietnam’s footwear industry is not only navigating global uncertainty but actively converting it into commercial opportunity.

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Gerik

Economic

Decline of the culture of mobility

For much of the 20th century, Americans were seen as a mobile people, willing to move across states for better housing or career prospects. Today, that image is fading. Data from the Census Bureau show that only 7.8 percent of Americans moved in 2023, the lowest since records began in 1948. In the 1950s and 1960s, nearly 20 percent of the population changed residence each year. The sharpest decline is seen in intra-county moves, which fell by nearly half over the past three decades.

Housing dynamics play a major role. Families like the Righis in New Jersey remain stuck in undersized homes because higher prices and interest rates make upgrading impossible. Retirees such as Bob and Ann Ruffatto near Chicago, though debt-free, hesitate to downsize because the market offers few affordable alternatives. Rising borrowing costs function as a lock-in mechanism, discouraging both upward and downward mobility.

Labor immobility and the golden handcuffs effect

The labor market reveals a similar slowdown. In the 1990s, about 2.8 percent of workers switched jobs monthly, but this figure has fallen to 2.3 percent in the 2020s, according to the Philadelphia Fed. Fear of layoffs and the security of lucrative contracts signed during the pandemic encourage employees to remain in roles they may not enjoy, a phenomenon described as “golden handcuffs.”

Recruiting firms confirm that job postings requiring relocation have plunged, from around 10 percent of total offers to just 2–3 percent. This reflects both employer reluctance to pay moving costs and employee resistance to risk. The causal relationship here is clear: constrained housing affordability amplifies job immobility, as workers cannot realistically relocate even when opportunities arise.

Economic consequences of stagnation

The impact is visible across key sectors. In housing, fewer transactions mean limited access for first-time buyers and a persistent mismatch between family needs and available supply. Redfin notes that the share of household income devoted to housing has risen from below 30 percent in the 2010s to nearly 39 percent today. Home sales volumes in 2023 sank to their lowest in nearly three decades.

In the labor market, immobility undermines productivity growth. When workers stay in mismatched roles or cling to local opportunities, the economy loses efficiency gains that would result from geographic reallocation of talent. Economists such as Chang-Tai Hsieh argue that this contributes directly to slower GDP growth. The correlation between reduced worker mobility and lower national output is reinforced by long-term data linking labor migration with economic dynamism.

Social shifts complicating relocation decisions

Beyond financial factors, evolving household structures limit mobility. Dual-income households, now far more common, face coordination challenges when considering relocation. Studies from the Richmond Fed show that couples with two earners have the lowest rate of interstate moves. Women’s growing contribution to household income also reshapes decision-making, making families less likely to uproot for one spouse’s career alone.

Young graduates embody the costs of reduced mobility. Many, like Josue Leon in Texas or Grace Ahn in California, are forced to accept local jobs outside their desired field due to financial pressures and a lack of relocation support. Their career paths reflect constrained choices, dampening ambition and eroding the belief in upward mobility once central to the “American dream.” Middle-aged professionals, such as Craig Allen in Illinois, are also opting to remain where they are, balancing family stability against limited local opportunities.

An American dream in retreat

What was once a society defined by motion people chasing better jobs, larger homes, and higher incomes has settled into a pattern of stillness. The interplay of high housing costs, reduced employer relocation packages, and secure but restrictive employment contracts has reshaped both individual decisions and the national economy.

The outcome is not only a correlation between stagnant housing and labor markets but also a direct causal drag on growth and social optimism. The American dream, long tied to the promise of mobility, now faces its greatest test: a population increasingly stuck in place.

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Manuel

Cryptocurrency

BitMine has become the first corporate treasury to surpass 1 million Ethereum (ETH) in holdings after its stash climbed to 1.17 million ETH on Aug. 15, valued at over $5 billion.

The firm added 317,126 tokens worth approximately $2 billion in a single week. BitMine chairman Tom Lee said on August 4 that the firm intends to move with “lightning speed” in its pursuit to acquire 5% of ETH’s total supply.

Notably, the company launched its treasury strategy on June 30, growing from zero to over 1 million ETH in a little over a month.

Treasury competition accelerates

BitMine now leads the Ethereum treasury sector, surpassing SharpLink Gaming’s 728,804 ETH holdings.

SharpLink reported on August 15 that it raised over $2.6 billion in capital for ETH acquisitions and has staked nearly 100% of its holdings, generating cumulative rewards of approximately 1,326 ETH.

Data from the Strategic ETH Reserve lists 71 ETH-focused treasury firms collectively holding 3.7 million ETH valued at $16.3 billion, representing 3.06% of the total supply.

These companies indicate plans to allocate roughly $27 billion toward additional ETH acquisitions, which could push corporate holdings to 10% of total supply.

BitMine filed an amendment to expand its at-the-market equity program by $20 billion to fund continued acquisitions.

The aggressive strategy has driven significant stock performance, with shares surging up to over 1,100% and an average daily trading volume of $2.2 billion, ranking it 25th among all US-listed stocks.

Institutional adoption context

The rapid accumulation could be a sign of growing institutional recognition of Ethereum as foundational infrastructure for future financial systems.

The corporate broad view could align with BitMine’s understanding that staking ETH secures the network and generates yield while aligning firms with Ethereum’s long-term success.

On July 21, Cathie Wood’s Ark Invest shifted approximately $175 million from traditional crypto stocks like Coinbase and Robinhood into BitMine. The move demonstrates institutional confidence in Ethereum treasury strategies.

BitMine’s achievement positions it as the third-largest crypto treasury globally behind Bitcoin-focused Strategy and MARA Holdings.

Source: Cryptoslate

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Manuel

Political

Russia-Ukraine Conflict

Discussions between President Donald Trump and Russian counterpart Vladimir Putin stretched into a second hour at a summit in Alaska, as the US leader pushes to secure an end to the war in Ukraine. Trump, Putin Talks Enter Second Hour at Ukraine Summit in Alaska_1

Trump, Putin Talks Enter Second Hour at Ukraine Summit in Alaska_1

Reporters were ushered into a room at the start of the formal talks, but the two leaders did not take any questions. Alongside Trump were US Secretary of State Marco Rubio and special envoy Steve Witkoff, while Putin was joined by Foreign Minister Sergei Lavrov and Kremlin foreign policy aide Yuri Ushakov.

A prior summit between the two leaders in Helsinki in 2018 lasted roughly two hours. A joint press conference with Trump and Putin is planned to take place after their meeting.

Friday’s summit, being held at a military facility — Joint Base Elmendorf-Richardson — opened with a highly-choreographed spectacle that saw the US president greet Putin on American soil for their first face-to-face encounter of Trump’s second term. The two leaders disembarked from their planes, walking across the tarmac to red carpets in a scripted opening. Trump clapped as he watched Putin approach and then greeted him with a warm handshake and pat on the arm.

The two leaders paused for a moment to watch a flyover and the US president was seen putting his hand on the Russian leader’s back as they walked down a set of steps. Trump and Putin appeared to be engaged in friendly conversation as they entered the Beast, as the US president’s armored limousine is known, and departed. The Russian leader was seen laughing in the vehicle as he began a visit that marked his first invitation to the US in nearly a decade.

The haphazard nature of the quickly arranged meeting — only announced last week — was apparent from the start. White House Press Secretary Karoline Leavitt said that a previously planned one-on-one meeting between Trump and Putin would be a three-on-three session with aides participating. Still, the ride in the presidential vehicle to the summit site allowed Putin time to speak directly to Trump without aides present, giving him valuable one-on-one time with the US leader.

The summit is laden with peril for Trump, who campaigned on a pledge to quickly end Europe’s deadliest war in decades — but also opportunity for a president who has repeatedly cast himself as the only leader who can deliver peace.

The president has downplayed expectations for the summit, claiming that he envisions it as a “feel-out” discussion laying the groundwork for a second more important meeting that could include Ukrainian President Volodymyr Zelenskiy and potentially European allies and where Moscow and Kyiv could “make a deal.” And he’s sought to dispel anxiety in European capitals that he may concede too much to Putin or strike a deal that involves exchanging territory or Ukraine ceding land without the input of Kyiv.

In an interview earlier Friday with Fox News’ Bret Baier aboard Air Force One, Trump insisted he would “walk away” if the talks with Putin did not go well. The US president also told reporters that he may provide security guarantees to Ukraine “along with Europe and other countries,” but added “not in the form of NATO.” Trump has long said that Ukraine may need to agree to swap land with Russia, but said it was not his decision to make.

“I’ve got to let Ukraine make that decision,” Trump said of land swaps. “I’m not here to negotiate for Ukraine. I’m here to get them at the table.”

For Putin, the visit has already delivered a win. An international pariah since he launched the full-scale invasion of his neighbor in 2022, Putin is being welcomed on US soil without having made any concessions, giving him his best chance to reset ties between Washington and Moscow in recent years. The Russian president has had little incentive to stop the fighting, confident that his military holds a dominant position on the battlefield as it slowly advances in a brutal, grinding war.

Putin launched a full-court charm offensive ahead of the summit, praising the US leader for “energetic and sincere efforts” to stop the war and floating the prospect of renewed economic cooperation and a new arms control treaty, playing to Trump who regularly casts himself as a peacemaker and dealmaker.

Putin’s entourage is expected to include finance ministers. The Russian president has been eager to divide the US from Europe and seek sanctions relief for an economy at home that may be on the verge of slipping into a recession.

“I noticed he’s bringing a lot of business people from Russia, and that’s good. I like that because they want to do business,” Trump told reporters on Air Force One. “But they’re not doing business until we get the war settled.”

Trump’s team is set to also include Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick.

Still, the risk for Ukraine and others in Europe is that Putin makes a sales pitch Trump finds hard to dismiss, or shifts the attention from Ukraine to improving US-Russia economic ties.

Another potential challenge would be if Putin extends an invitation for Trump to meet with him in Russia, placing Zelenskiy and other allies with the difficult choice of being sidelined or rewarding the Kremlin by traveling there.

The last summit between the two leaders — a 2018 meeting in Helsinki — has cast a shadow over Friday’s gathering and highlighted what has been at times an imbalanced relationship. At that time the two leaders spent time alone without aides.

At the news conference wrapping up that summit, Trump publicly sided with Putin over his own intelligence officials, drawing bipartisan condemnation for saying he believed the Russian leader’s assurances that Moscow had not meddled in the 2016 US election.

Source: Bloomberg

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Manuel

Commodity

Russia-Ukraine Conflict

Oil drifted lower, settling below $66 a barrel, as investors awaited a face-to-face summit between Donald Trump and Vladimir Putin later Friday, an encounter with the potential to reshape crude flows from one of the world’s largest producers.

Putin stepped up his charm offensive, praising Trump’s efforts to broker an end to the war in Ukraine. The US president downplayed hopes for a breakthrough in the more than three-year-old conflict, saying there’s a 25% chance the meeting won’t succeed.

Any signs of progress toward peace would remove a layer of geopolitical risk from an oil market that’s expected to be heavily oversupplied in coming months. Before the summit was arranged, Trump threatened Moscow’s largest oil buyers with secondary tariffs, putting at risk flows that have remained robust since the war began.

Russia is the world’s largest crude exporter after Saudi Arabia, and has become reliant on buyers in China and India eager to purchase oil at a discount to international benchmarks.

Trump announced a doubling of tariffs on Indian goods to 50% last week as a penalty for the nation’s purchases of Russian crude, and has mulled further crackdowns on the so-called “shadow fleet” that transport Moscow’s supplies. However, he has so far avoided targeting China — possibly because of concerns a total blockade would send oil prices skyrocketing and hurt US consumers.

On Thursday, Trump warned he would impose “very severe consequences” if Putin didn’t agree to a ceasefire. He also said he hoped to use the summit to set up a “quick second meeting” with Ukrainian leader Volodymyr Zelenskiy after being pressed by allies.

“We judge that tonight’s meeting is unlikely to deliver significant results,” said Arne Lohmann Rasmussen, chief analyst at A/S Global Risk Management. “In the near term, new US sanctions are unlikely; a relaxation cannot be ruled out unless the meeting collapses.”

Oil prices have lost about 10% this year on concerns about the demand implications of Trump’s trade policy and the rapid return of OPEC+ barrels. Expectations for a record glut in 2026 are weighing on the market.

Source: Bloomberg

Risk Warnings and Disclaimers

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Manuel

Economic

Central Bank

Chicago Federal Reserve Bank President Austan Goolsbee on Friday left the door open to supporting an interest-rate cut in September should fresh data prove reassuring, but said recent reports showing a rise in services inflation give him some pause amid what he calls the "stagflationary" impulse from tariffs.

"I feel like we still need another one at least to figure out if we're still on the golden path," Goolsbee told CNBC.

"If we can assure ourselves or get a hint that for this meeting, or the meetings this fall, that we aren't on an inflationary spiral that looks to be persistent, I still think it makes sense given the strength of the economy to move rates more back to where we think they're going to settle."

The U.S. central bank has kept its policy rate unchanged all year as it monitors the impact of the Trump administration's higher tariffs, which Fed policymakers expected would drive up inflation and unemployment and slow the economy.

So far the data has not validated their worst fears. With the economy slowing, both economists and financial markets expect the Fed to begin cutting rates again next month.

Still, there have been some concerning signs on inflation, along with mixed signs about whether still-strong consumer spending will continue.

Data on Friday was a case in point

U.S. retail sales increased 0.5% last month after an upwardly revised 0.9% in June, the Commerce Department reported,. This allayed some concerns that a drop in monthly job gains to just 35,000 on average over the last three months signaled a potential plunge in economic activity.

Factory output was unchanged compared to June, a separate report showed, a touch better than forecast, but heavy truck output, which is seen as a forward proxy for demand for equipment to deliver goods, fell to the lowest since last October.

Yet a different report Friday showed import prices increased 0.4% in July amid a strong rise in the cost of consumer goods. This was a potential warning sign for inflation that followed reports earlier this week that showed a jump in services prices helped push up producer prices in July, and kept consumer prices more elevated than otherwise.

"That makes me a little uneasy because that's very unlikely to be caused by tariffs, so I'm hoping that was a blip," Goolsbee said of the producer price index and consumer price index reports.

"Let's not overreact to one month of import price data for sure. Let's not overreact to one month of CPI or PPI inflation. But it's at least an area of concern," he said.

Source: Reuters

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Manuel

Cryptocurrency

Brevan Howard became the largest institutional shareholder of BlackRock’s iShares Bitcoin Trust (IBIT) by increasing its holdings by 71% between the first and second quarters of 2025.

According to a filing with the US Securities and Exchange Commission (SEC) of its latest 13F form, the hedge fund now holds approximately 37.5 million IBIT shares valued at roughly $2.3 billion as of June 30, up from 21.9 million shares in the first quarter.

Additionally, Brevan Howard has a $25 million exposure to Bitcoin put calls through 400,000 shares of IBIT. The London-based firm’s dollar-denominated holdings grew from both the share increase and Bitcoin’s (BTC) price appreciation during the period.

Bitcoin surged from its March closing of $82,511.47 to a June closing of $107,168.23. This price movement amplified the value of Brevan Howard’s expanded position.

Brevan Howard previously ranked as the second-largest IBIT investor, trailing Goldman Sachs, which held over $1.4 billion worth of IBIT shares as of March.

The accumulation in the second quarter vaulted Brevan Howard past Goldman Sachs to claim the top position among institutional holders.

The hedge fund also added exposure to BlackRock’s iShares Ethereum Trust (ETHA) during the last quarter.

Crypto dive

Brevan Howard formed BH Digital in September 2021 to provide digital asset exposure across investing and business operations in public and private markets.

The dedicated crypto division has delivered strong performance, with BH Digital returning 34.5% in the first quarter of 2024 while managing around $1.7 billion in assets.

Brevan Howard raised more than $1 billion for its flagship crypto vehicle, representing the largest crypto hedge fund launch ever.

The firm’s dual approach combines direct crypto investments through BH Digital with exchange-traded funds (ETFs) holdings in traditional portfolios.

IBIT has attracted substantial institutional interest since launching in January 2024, with over $91 billion in assets under management, according to Bold Report data.

Furthermore, Farside Investors’ data revealed that IBIT accumulated $58.5 billion in positive net flows since launch, dwarfing the second-largest spot Bitcoin ETF by nearly five times.

Brevan Howard’s Bitcoin ETF accumulation reflects broader institutional adoption of crypto through regulated investment products.

The firm’s substantial IBIT position demonstrates how traditional asset managers are incorporating digital assets into institutional portfolios while maintaining operational efficiency through ETF structures.