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Writer's pictureVan Pham LLC
Apr 91 min read

From Sketch to Store | Business Wisdom and Legal Essentials for Starting a Fashion Business in Vietnam

Why Vietnam?

  • The young and growing population with the rise of the middle class 

  • Globalization and increased connectivity, fueled by social media and travel

  • The rise of e-commerce platforms with convenient access to various fashion products. 

  • Potential growth: the apparel market in Vietnam is forecast to reach $7.33 billion by 2025 and there is still plenty of room for exploitation (as Statista). Vietnamese people spend about $4.3 billion on clothes, and the rate is expected to increase steadily by about 10 percent annually (as Vietnam National Textile and Garment Group)


International Fashion Brands enter to Vietnam market:

According to Vietnam Retailers Association:

  • More than 200 fashion brands

  • Accounting more than 60% market share

  • Ranging from affordable to high-end goods


Typical Cases:

  • H&M: Swedish brand owns 12 stores in five major cities in Vietnam after five years

  • Zara: owned by the world’s largest fashion group, Inditex – has entered Vietnam since 2016, with three stores in Hanoi and Ho Chi Minh City.

  • Uniqlo: since its debut in Ho Chi Minh City in 2019, the Japanese brand has increased the total number of stores to 11, including the largest one in Southeast Asia.


Challenges:

Vietnamese consumers did not get excited about the new brand. The market has witnessed the retreat of new names, such as AVA Fashion of Mobile World Group (MWG) after just six months of launching. 



Collage showing why international fashion brands are entering Vietnam, including a young population, rising middle class, e-commerce growth, and market potential. Over 200 brands like H&M, Zara, and Uniqlo have expanded to Vietnam, capturing 60%+ market share.
Why Vietnam? | International Fashion Brands enter to Vietnam market | Typical Cases


Alt text: Infographic summarizing key legal considerations for setting up a fashion business in Vietnam. Includes registering business license, understanding tax obligations, protecting intellectual property rights for designs, complying with labor laws and employee contracts, and following regulations on importing materials and exporting products. Highlights importance of thorough research and professional legal guidance to navigate Vietnam's business landscape successfully as a foreign fashion brand.
Legal Insights for Setting up a fashion business in Vietnam



Alt text: Infographic summarizing key legal considerations for setting up a fashion business in Vietnam. Includes registering business license, understanding tax obligations, protecting intellectual property rights for designs, complying with labor laws and employee contracts, and following regulations on importing materials and exporting products. Highlights importance of thorough research and professional legal guidance to navigate Vietnam's business landscape successfully as a foreign fashion brand.
Key Considerations for Setting Up a Vietnam Fashion Business

List of business sectors related to the fashion industry that can be registered under the Vietnam Industry Classification System. These include manufacturing of textiles, leather, wearing apparel, and related products; wholesale and retail sale of textiles, clothing, footwear, and leather articles; professional design services for fashion, textile, clothing, and leather products; and other relevant service activities such as fashion consulting, fashion event organization, and fashion photography. Registering a fashion business under the appropriate sector is crucial for compliance with Vietnamese regulations and accessing relevant government support and incentives.
Busiess Sectors Under the Vietnam Industry Classficiation System


Reference Sources:


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