return icon

Luxury brands see great potential in Viet Nam

Vietnam pales in comparison with Japan and China in regard to the size of the luxury market, but it has a great potential to become a highly profitable market in the near future.


Porsche expanded its footprint in Viet Nam with the opening of Porsche Studio Ha Noi. — Photo Porsche


Jing Daily, a leading digital publication on luxuries in China, said the bright outlook for Viet Nam’s luxury market could be attributed to the rising income of its people in recent years as high-income consumers are the backbone of luxury consumption.

Between 2002 and 2020, Viet Nam’s GDP per capita grew 2.7 times, reaching nearly US$2,800. A 2016 report prepared by the World Bank has also highlighted that the country could reach upper-middle-income status by 2035, with a per capita income topping $7,000.

Viet Nam’s middle class population has been expanding massively as well, expectedly climbing to 95 million by 2030, according to predictions by Nielsen. Meanwhile, the number of High Earners, Not Rich Yet Individuals, and ultra-wealthy are also growing. The number of people with a net worth of $1-30 million will soar by 32 per cent to over 25,800 by 2025.

In addition, luxury brands should be bullish on Viet Nam because their goods are increasingly in high demand in the country. This is even more the case now as consumers are restricted at home and cannot travel to Singapore or China to gratify their appetite for luxuries.

“The appetite for luxury goods is more pronounced than ever in Ha Noi and HCM City”, said Tran Thi Hoai Anh, founder of GlobalLink Co Ltd.

Just one decade ago, it was all about knowing the difference between Gucci and Prada, but now a new generation of high-end shoppers are driven by the quest for quality, distinctiveness and craftmanship, the founder added.

For obvious reasons, the luxury sector benefited from the EU-Viet Nam trade agreement and the investment protection agreement in 2019 that removed 99 per cent of all tariffs and lowered many regulatory barriers.

With luxuries becoming more affordable, consumers could get their hands on these high-end products more easily.

At that point, some renowned brands have sensed the opportunity and turned the growing domestic demand for luxuries to their advantage by gaining footholds in the country.

Porsche has inaugurated Porsche Studio in Ha Noi, its second retail space in Southeast Asia. According to Arthur Willmann, chief executive officer of Porsche Asia Pacific, Viet Nam has become one of Porsche’s fastest-growing markets.

At the same time, DAFC, which runs over 60 luxury brands, including Cartier and Rolex, announced its sales in Viet Nam were up by 35 per cent in 2020.

Likewise, Bvlgari decided to return to the market in March 2021 with the inauguration of its first physical store in HCM City.

“It was the right time to return since we were able to approach our potential customers”, a Bvlgari Viet Nam spokesperson noted.

According to Statista, revenue from Viet Nam’s personal luxury goods market reached $976 million in 2021 and is expected to grow by 6.67 per cent annually in 2021-2025.

Source: VNS



Two additional enterprises allowed to export pangasius to EAEU

HCM City has ambitious greenery plans for 2022

HCM City plans to add at least 10 hectares of parks and two hectares of public green spaces, and plant or rehabilitate 6,000 trees this year to make the city greener and more beautiful.

Two additional enterprises allowed to export pangasius to EAEU

The Russian Federal Service for Veterinary and Phytosanitary Supervision (FSVPS) have recently added two more seafood enterprises to the list of Vietnamese firms permitted to export to the Eurasian Economic Union (EAEU), as of May 4.

Vietnam seeks climate finance from G7

The partnership with the world’s advanced economies will help Vietnam address financial problems to pursue the low-carbon strategy.

Hoa Phat fined for having no independent board members

Hoa Phat Group JSC (HPG), a leading Vietnamese steelmaker, has been fined VND125 million for having no independent members on its board of directors.


Miss Supranational Vietnam 2022 debuts in HCM City


SEA Games 31: Vietnamese archers secure two silver medals

HCM City set to pilot casino scheme at luxurious hotels

HCM City is planning to pilot the opening of casinos at hotels rated five stars and above in popular tourist destinations for Vietnamese citizens aged 18 and over.

Fresh opportunities for Vietnam-US cooperation in tourism development and trade

Prime Minister Pham Minh Chinh has voiced his hope that US partners to support Vietnam in policy consultation, capital, human resources, infrastructure systems, technology, and governance.

Prime Minister invites US investment in digital transformation

Meeting with US financial corporations, Vietnamese Prime Minister Pham Minh Chinh said Vietnam is dealing with problems to make the capital market develop in a safe, transparent, effective and sustainable way.

Vietnam's stock market has potential in long term

After the longest losing streak in the past ten years, the VN-Index fell off the 1,200-point mark - an important support level established in 2018.

HCMC seeks to remove obstacles facing 38 property projects

The HCMC government has asked the Department of Construction to coordinate with other departments and agencies to quickly remove bottlenecks facing 38 real estate projects in the city as proposed by the HCMC Real Estate Association (HoREA).

Vietnam removes anti-dumping duties on steel imports from China, S.Korea

The Ministry of Industry and Trade has decided to remove anti-dumping duties on coated steel imports from South Korea and China after five years of imposing the duty.

Local gold regulation considered 'outdated' amid skyrocketing prices

With the price of a tael of gold in Vietnam more than US$800 higher than in the rest of the world, local experts say the local regulation of gold prices is unsuitable.

Encouraging results with Mobile Money deployment in VN

Le Anh Dung, deputy director of the Payment Department under the State Bank of Vietnam, noted that the Mobile Money service has grown positively.