Being a small nation, with less than 332.000 square kilometers of surface area and just over 98 million inhabitants, Vietnam is unable to compete with some of the major markets in the Far East such as China, Japan or the emerging South Korea, but with an adequate number of investments it could still generate a substantial portion of revenue for high-end companies. According to forecasts published by Vietnam Plus and compiled by the Statistical market data portal Statista, Revenues in the Vietnamese luxury goods market will amount to USD 957.2 million in 2023 and will grow annually by 3.23% during the period 2023-2028. In the wake of these prospects, many brands such as Dior, Louis Vuitton, Tiffany & Co., Berluti, Santoni and Gianvito Rossi, are seen in this area – together with Singapore and Thailand – are some of the most important markets for the luxury sector, has started investing in Vietnam through proven local partners. Of the population of 97 million people, there is an estimated number who belongs to the middle class of 33 million (according to Boston Consulting Group data) to 44 million (Nielsen data), more than double the 15 million estimated in 2016. It is this middle class that will lead a rapid evolution in consumption. Data from the Vietnam General Statistics Office shows that, over the past four months, Vietnam’s domestic consumption has experienced a gradual recovery, as evidenced by the total revenue from retail sales of goods and services, which had an increase of 26.7%, compared to the same period of 2019, the year before the pandemic parenthesis.
