Vietnamese fondness for fast fashion led to a big jump in Zara’s revenues to VND 1.7 trillion ($73 million) last year, six times the 2016 figure. The Spanish company has only two stores in Vietnam – in Hanoi and Ho Chi Minh City – yet local brands like Tam Son Fashion and Mai Son International Retail are trailing far behind. Its products have been distributed by Indonesia's Mitra Adiperkasa Group since it ventured into the country in 2016. However, despite the rapid increase in its revenues, pre-tax profits of Zara Vietnam were a mere VND98 billion ($4.22 million), or 6 percent of revenues, since selling expenses are high.
Statistics Portal, a German market analysis firm, has forecast the compounded annual growth rate of the Vietnamese fashion industry in 2017-2022 will be 22.5 percent. A survey by Nielsen last year found that clothes were Vietnamese consumers’ third spending priority after food and saving. The survey also shows Vietnam ranks third globally in the number of people fond of branded goods after only China and India.