Exports of popular brands have raked in tens of billions of dollars each year – but with a population of 90 mn, few firms are focusing on local customers. Instead, more and more foreign labels are selling in Vietnam. According to the Vietnam Association of Retailers, more than 200 foreign fashion brands are currently present in Vietnam, accounting for more than 60 per cent of the market share from medium-end to high-end products.
After a year in the Vietnamese market, Hennes & Mauritz AB (H&M) – Swedish fashion firm – plans to increase the number of its stores to six next month. Zara also has stores in Hanoi and HCM City. Meanwhile, other foreign fashion brands such as Mango, Stradivarius, Massimo Dutti and Topshop has recently joined Vietnam’s market.
After a period of developing brands of Vietnamese goods, fashion firms such as Viet Thy, Foci, Sai Gon 2, Ninomaxx and PT 2000, have been forced to narrow their production scale.