Major international brands are setting up shop in Vietnam to tap a rapidly growing fashion market. Japanese casual wear retailer Uniqlo is planning its first store in the country. The 3,000 sq mt store would be one of its biggest in southeast Asia.
There are some 200 foreign brands in Vietnam, accounting for 60 per cent of the market. Zara, H&M and Mango are the three most recognised brands, followed by Gap, Forever 21 and Giordano. British brand Topshop has four stores in Vietnam and American brand Gap has five stores. Foreign investors have also been trying to enter with a series of acquisitions in the last few years. Japanese fashion company Stripe acquired Global Fashion, which owns women’s footwear brand Vascara.
Vietnam, with its young demograpy, growing incomes and 95 million population, is considered a huge and promising market. Foreign brands are attracted by its 15 to 20 per cent annual growth. In terms of spending clothes score third after food and saving. Vietnam is ranked third globally in the number of people fond of branded goods after China and India. The change in the level of wealth of the Vietnamese enables them to buy international standard products and services. More and more Vietnamese are choosing to buy luxury goods or exclusive products.