Vietnam's luxury fashion market presents opportunities for international brands, but market growth alone does not determine whether an expansion will succeed. Brands need to understand local customers, assess retail costs, choose suitable sales channels and confirm the requirements for selling goods in Vietnam.
According to IMARC Group's Vietnam Luxury Goods Market report, the market was valued at an estimated US$2.5 billion in 2025 and is projected to reach US$4.8 billion by 2034, with a forecast compound annual growth rate (CAGR) of 7.15% between 2026 and 2034. This estimate covers luxury goods more broadly, including watches, jewellery, cosmetics, clothing and bags.
The luxury fashion market has a different estimated value and growth outlook. IMARC Group's Vietnam Luxury Fashion Market report, updated in April 2026, estimates that the segment reached US$393.7 million in 2025 and could reach US$675.3 million by 2034, representing a forecast CAGR of 5.99% over the same period.
These estimates indicate potential for further growth. For foreign brands, the next step is to understand where demand exists, how customers choose luxury products and what it takes to establish a commercially viable presence in Vietnam.
Vietnam's luxury goods market spans fashion, footwear, handbags, watches, jewellery, fragrances and cosmetics. Each category has its own customer base, pricing considerations and competitive landscape, so brands should assess the segment most relevant to their products rather than rely on the overall market value alone.
IMARC's estimates point to continued growth in Vietnam's luxury goods market, with luxury fashion representing a distinct segment within it. The distinction matters: demand for clothing, footwear and accessories may not follow the same pattern as demand for jewellery, watches or beauty products.
For foreign brands, the practical starting point is to assess the category they intend to enter, rather than treating the overall luxury goods forecast as evidence of demand for their specific products.
According to the Vietnam Ministry of Industry and Trade, Vietnam's online retail market reached $32 billion in 2025, representing around 12% of total retail sales of goods and services revenues. Social commerce and livestreaming have become increasingly prominent in the retail sector. These numbers refer to the overall retail market rather than to luxury items.
For luxury brands, this wider shift makes digital channels relevant for product discovery, brand storytelling and customer engagement. However, a broader rise in e-commerce does not establish that consumers will purchase high-value luxury items through the same channels. Brands should validate the role of online sales against their price point, customer expectations and distribution strategy.
Vietnam's luxury market should not be assessed on sales forecasts alone. Luxury positioning also depends on how a brand presents its products, communicates quality and serves its customers.
According to Savills' report on HCMC's retail market for the first quarter of 2026, there was a total retail supply of around 1.6 million square metres from a total of 160 projects, where the total occupancy stood at over 90 percent. Competition for quality retail spaces is increasing, while the importance of consumer experience and positioning is becoming more and more significant.
The implication is that a luxury brand needs to assess more than footfall. The retail environment must support its intended positioning and the experience it wants customers to associate with the brand.
This section should answer where brands are operating and what the retail environment looks like. Avoid repeating market forecasts, digital commerce growth or general consumer trends here.
Hanoi and Ho Chi Minh City are key markets to assess when planning a luxury fashion launch. Their suitability for an individual brand will depend on the location of its target customers, relevant retail destinations, competition and the availability of suitable premises.
Brands should assess potential locations individually instead of assuming that a presence in either city automatically makes commercial sense.
According to Savills' first-quarter 2026 report, the demand for quality retail spaces is high in Ho Chi Minh City, with no increase in the number of new spaces expected in the coming years. While the statistics are not necessarily related to luxury fashion, they still offer useful information.
Before committing to a store, a brand should compare rental costs, location, visibility, customer access and the fit between the retail environment and its positioning.
A flagship store, a space within a shopping centre, an authorised distribution arrangement and an online-first approach involve different levels of investment and control.
The appropriate format depends on the brand's objectives, customer expectations, available resources and appetite for operational complexity. This decision should be made before committing to a long-term retail footprint.
Vietnam's luxury goods and luxury fashion markets offer opportunities for foreign brands, but market growth alone does not determine commercial success. Businesses need to assess category-specific demand, competitive positioning, retail costs, distribution models and regulatory requirements before committing to expansion.
Ascentium supports businesses in evaluating market-entry requirements and planning their operations in Vietnam. Our team can help you understand the local business environment, assess relevant regulatory considerations and identify the steps required to establish your presence.
If you are considering Vietnam for your next stage of growth, speak to Ascentium to discuss your market-entry plans and determine the requirements relevant to your business.