The Knight Frank Wealth Report shows that the number of ultra-high-net-worth individuals in Vietnam has increased from 583 people in 2017 to 1,059 people by the end of 2022, nearly doubling in 5 years. To be classified as ultra-high-net-worth individuals, individuals must have a net worth (excluding debt) of at least $30 million, including the real estate they reside in.
Knight Frank also forecasts that this number will reach nearly 1,300 by 2027, an increase of 22% compared to the present, and equivalent to a 122% increase over a 10-year period. Not only that, the wealthy population – individuals with assets of $1 million or more – in Vietnam has increased by 70% in the past 5 years and is expected to soar by 173% in the 10-year period from 2017 to 2027.
Vietnam is also a young country with an average age of 32.5 years, which is considered a potential age for luxury product consumption. Therefore, Vietnam has become an ideal destination for international brands, from fast fashion to luxury and high-end retail segments.
According to Statista, the luxury goods market in Vietnam grew by 34% in 2022 and is projected to continue growing at a rate of 4% per year until 2025.
Major brands like Dior, Louis Vuitton, Chanel, Hublot have also opened stores in major cities in Vietnam. Most recently, the Longines brand has opened a brand showroom in a prime location in Ho Chi Minh City. Longines is an expensive watch brand and a member of the world’s leading watchmaking group – the Swatch Group, with prices ranging from thousands of dollars per piece (equivalent to about VND 15 million to hundreds of millions of VND). The company has been headquartered in Saint-Imier, Switzerland since 1832.
Sharing about the luxury goods sector in Vietnam, a representative from Longines said: “In recent years, the youthful customer group has tended to look for heritage-rich watch models, and this is an opportunity for a brand like Longines. I believe that Vietnam will be one of the major markets for the luxury goods industry in the coming years. You have a large population, a rapidly developing economy, and rapid growth in the middle class – a group of customers who favor branded products.”
In fact, the luxury goods market is a big cake that brings in billions of VND for brands like Gucci, Chanel, Dior…
Data from Vietdata shows that in 2022, Louis Vuitton’s net revenue reached nearly VND 2,400 billion, an increase of 50% compared to the previous year. Next is Chanel, also one of the famous French brands with the highest-class fashion, perfume, and cosmetics products. In 2022, the brand’s revenue reached VND 2,186 billion, an increase of 57% compared to the previous year. Dior and Gucci also earn billions of VND in revenue each year, with growth rates similar to recent years.
