Vietnam's luxury industry is set for substantial growth, with projected revenues of 957.2 million by 2023 and an annual growth rate of 3.23 percent until 2028, according to data from Statista. Despite the United States currently leading in luxury revenue, with annual sales topping 75 billion dollars, Vietnam's expansion is drawing in affluent consumers and emerging as a potential hub for renowned luxury brands.
Companies such as Dior, Louis Vuitton, Tiffany & Co and Berluti have recently opened stores in Vietnam, while many European fashion houses partner with local specialists like DAFC, a key distributor of luxury brands in the country, according to Vietnam Plus.
The surge in Vietnam's economy is expected to expand by 6.3 percent in 2023 according to the World Bank, and is primarily fuelled by the growing consumption of the middle class. This demographic has expanded from 15 million in 2016 to an estimated 33 to 44 million, as highlighted by the Boston Consulting Group and Nielsen.
With an established production sector and forthcoming luxury retail and hospitality projects, including luxury hotels in Hanoi, Vietnam is increasingly appealing to global luxury players.
While Vietnam may not yet rival well-established luxury destinations like China, Japan and South Korea, its promising growth trajectory indicates its potential to join the ranks of top-tier Asian destinations in the near future.