High-end brands looking to invest in Vietnam
According to Statista, a statistics portal for market data, revenue in the luxury goods market in Vietnam is expected to reach 957.2 million USD by 2023, with an annual growth rate of 3.23% in the 2023-2028 period.
The increasing consumer demand in Vietnam has motivated many luxury brands such as Christian Dior Couture, Louis Vuitton, Tiffany & Co., and Berluti to invest in the country. Statista reported that although the number of luxury brands in Hanoi is not large, the demand is increasing.
The capital city is also set to welcome luxury hotels such as Four Seasons Hotels and Resorts, Fairmont Hotels & Resorts, Waldorf Astoria, and The Ritz-Carlton Hotel Company, L.L.C., which are expected to create a new luxury shopping complex, attracting many high-end brands to join the potential market.
Despite the global difficult situation, Vietnam’s economy is forecast to grow by 6.3% in 2023, according to a report by the World Bank. Under the national master plan for 2021-2030, Vietnam is targeting an annual average GDP growth of 7% during the period.
By 2050, GDP per capita at current prices is expected to reach about 27,000 – 32,000 USD. Domestic consumption has gradually rebounded, with the nation’s total revenue from retail sales of goods and services in the last four months increasing by 26.7% compared to the same period in 2019, before the outbreak of COVID-19, according to data from the General Statistics Office.
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