A recent report by the Vietnam Industry Research and Consultancy (VIRAC) finds the Vietnamese fashion market is dominated by international brands. As per reports, Japanese fashion brand Uniqlo has eight stores in Vietnam since 2019. The top three fashion retailers in the country in 2020 were Adidas, Zara and H&M. Experts say enthusiasm of Vietnamese people for foreign fashion brands has helped them make trillions of dong in the country.

H&M's annual revenue in Vietnam increased 4.4 per cent in 2020 to react SEK453 million The brand also opened its ninth store in the country last year. A few months after launching in Vietnam, H&M achieved revenue of VND227 billion in 2017 and reached VND760 billion in 2018 and VND1.116 trillion in 2019.

Similarly Zara Vietnam recorded VND321 billion in revenue in 2016, and more than VND1.1 trillion in 2017 and nearly VND1.7 trillion in 2018. Uniqlo has continuously opened new stores since entering Vietnam at the end of 2019. The brand now has eight stores in Vietnam.

On the other hand local brands in the country are dwindling, says the VIRAC report. It attributes their failure to poor designs and the small scale of their businesses. The trading of fake products at markets and stores and on e-commerce platforms has also caused difficulties for Vietnamese businesses.