Vietnam Emerges as Hub for Luxury Brands

February 2024

Distributors of luxury brands in Vietnam, including Louis Vuitton, Chanel, Dior, and Hermes, reported profits of VND 3.8 trillion (USD 156.57 million) in 2022, marking a remarkable 270% increase compared to the previous year. Recent reports also indicate that the combined revenues of 12 companies distributing 34 luxury brands surged by 67% to reach VND 25 trillion (USD 1 billion). Other notable brands within this grouping include Rolex, Calvin Klein, Charles & Keith, and Zara.

Among these distributors, Tam Son emerged as the top performer. The company boasts the largest portfolio of top-tier brands in Vietnam, including Hermes, Kenzo, Boss, Patek Philippe, and Vacheron Constantin.

Notably, certain brands like H&M, Gucci, Louis Vuitton, Chanel, Dior, and Adidas have established direct legal entities for product distribution in Vietnam.

Vietnam registered a strong in the number of ultra-rich individuals in Vietnam between 2017 and 2022, with 1,059 people now possessing a net worth exceeding USD 30 million. This surge in wealth, combined with Vietnam’s young demographic—characterized by an average age of 32—drives a strong demand for luxury products.

According to Germany-based Statista, Vietnam’s luxury market was valued at over USD 957 million in 2023 and is projected to grow by more than 3% annually until 2028. The economic downturn in China has prompted luxury brands to diversify their operations beyond one country, highlighting the importance of exploring new markets like Vietnam.

(Source: VnExpress)

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