Vietnam has become very attractive for foreign fashion brands thanks to its young population, high growing economy and improved income. More than 200 foreign fashion brands are present in Vietnam, providing a wide range of products from mid- to high-end products, which hold 60 per cent of the market share. Foreign brands show a big interest in Vietnam because of the industry’s high average growth rate of 15 per cent to 20 per cent. Japanese global apparel retailer Uniqlo will open its first store in Vietnam next year. Especially since Vietnamese consumers tend to prefer Japanese goods, Stripe, another Japanese apparel manufacturing giant, has also taken steps to enter Vietnam.
Vietnamese spending on clothes is now third priority, after food and savings. The fashion market in Vietnam is estimated to grow to more than $3.8 billion this year and to over $5 five billion by 2021. Fashion brands such as Zara, H&M and Mango are already present. Thanks to the high spending on fashion goods of Vietnamese consumers, many foreign brands are having good business in the country. Late last year, Zara and H&M also made their debut in Vietnam to break open the market of fast and affordable fashion for men, women, teenagers, and children.