Vietnam’s fashion sector is undergoing a dynamic transformation, presenting significant opportunities for investors and brands seeking to enter or expand in the market. Driven by robust export growth, a young and increasingly affluent population, and rapid digital adoption, the Vietnamese fashion industry is rapidly evolving to meet consumer demands.

Overview of Vietnam’s apparel & footwear retail landscape

Apparel and footwear play a crucial role in the development of the fashion industry. The sector benefits from a favorable economic backdrop, with GDP projected to grow 6-6.8% in 2025-2026, and a young, urbanizing population driving modern consumption habits. The Vietnam apparel and footwear retail market was estimated to be approximately 4.5 billion USD in 2024, and is expected to reach around 5 billion USD by 2029. As the domestic economy grows and consumer preferences shift, apparel retail in Vietnam is experiencing stable growth, rapid digital adoption, and rising demand for sustainable fashion

Key trends driving the apparel retail market in Vietnam

  1. Fashion search trends among Vietnamese consumers

  • According to data from the local browser Coc Coc, Clothing is the top category in fashion searches among Vietnamese consumers, for both women and men. Essential wardrobe staples (pants, shirts, skirts, and dresses) make up over 84% of women’s fashion searches and 53% for men.
  • The second most popular search differs by gender:
    • For women, footwear (shoes, sandals, slippers) accounts for 12% of searches.
    • For men, accessories such as wallets, belts, ties, bow ties, socks, hats, bags, and backpacks represent 27% of searches.
  • Top searched keywords on the Internet:
    • Top searched apparel keywords include T-shirts, polo shirts, and jeans.
    • Top searched accessories keywords include watches, handbags, and sandals.

  1. Luxury boom, fast fashion surge, and local brand reinvention

Vietnam’s apparel market is highly diverse and rapidly evolving. Luxury fashion is booming, with global brands like Hermès, Piaget, and Cartier making high-profile expansions in 2024 to meet rising demand from affluent urban consumers. The momentum is expected to accelerate further as Vietnam’s rising middle class transitions into aspirational luxury buyers. Meanwhile, fast fashion giants like Uniqlo, H&M, and Zara dominate among urban youth through rapid trend cycles, aggressive promotions (sometimes up to 90% discounts), and strategic mall placements. Uniqlo, in particular, stands out with remarkable growth in both sales and physical presence. By the end of 2024, Uniqlo had expanded to a total of 29 stores nationwide, particularly strengthening its footprint in urban markets.

Alongside the strong performance of major international brands, in recent years, Vietnam’s fashion industry has witnessed the remarkable rise of “made-in-Vietnam” labels that are capturing both local and international attention. However, as the number of local brands grows, not all are able to maintain a unique identity and quality. The market is now defined by a dual trend, with bold new names gaining international acclaim while many long-established labels struggle to stay afloat due to increased competition from both international and local players.

  • A new generation of Vietnamese fashion brands is thriving amid industry upheaval, embracing creativity, trend-driven designs, and higher product quality to capture both domestic and international attention. Brands like LSOUL, FANCì Club, and Blanke Space are gaining global recognition, with their collections worn by international celebrities and expanding into overseas markets.

      LSOUL worn by Katy Perry
  • However, this wave of innovation stands in stark contrast to the mounting challenges faced by many established domestic brands. Intensifying competition from international giants, coupled with rising operational costs and outdated brand images, has led names such as Lep’, CATSA, IVY Moda, Elpis, and Giian to downsize or exit the market in 2024, as costly reinvention often proves unsustainable in the current landscape.

  1. Sustainable push

Sustainability is at the forefront, with both manufacturers and consumers increasingly favoring eco-friendly, recycled, and innovative materials. The government’s commitment to net zero emissions by 2050, combined with heightened environmental awareness and changing consumer preferences, is accelerating the adoption of green fashion. In response, local brands such as Yody, An Phuoc, etc. are launching collections made with recycled plastics, organic cotton, and other green materials.

  1. E-commerce and livestream shopping boom

E-commerce has become a transformative force in Vietnam’s apparel retail market. By the end of 2024, retail ecommerce accounted for 27.5% of apparel value sales. Vietnam’s overall e-commerce market surpassed $25 billion in 2024, with fashion and accessories leading category sales.

Platforms like Shein, Taobao, and Shopee have democratized fashion access, enabling consumers to buy trend-forward items directly from China. Many Taobao sellers have also opened online shops on Shopee, or provide options to ship directly to Vietnam on Taobao platform, further accelerating cross-border fashion consumption.

This surge in online retail has fueled an influx of local apparel retailers to leverage digital platforms to reach broader audiences and compete more effectively with global players.

Conclusion

Vietnam’s fashion sector stands at a pivotal point of transformation, driven by global demand, a tech-savvy consumer base, and a push toward sustainability. The market is evolving rapidly, supported by digital innovation, green investments, and strong policy momentum.