The Rise and Fall of Vietnam’s Once-Buzzing Brands: An Industry Insider’s Take on the Market Pressure that Led to Their Demise

LUU VIETANH, a beloved handbag brand, shared the news of its closure on the founder, Luu Viet Anh’s personal page. Viet Anh expressed his relentless efforts to maintain a balance between market demands and the brand’s design aesthetics. Despite his aspirations for a more mature market that appreciated high-end aesthetics, the cut-throat price competition in the industry took its toll on the brand’s operational costs, ultimately leading to this difficult decision.

The brand faced challenges due to the prevalent price wars on e-commerce platforms and livestream sales, which left Viet Anh feeling exhausted and resolute in his choice to bring the brand to a halt at this juncture.

Simultaneously, the high-end fashion brand DANGHAIYEN bid farewell to its customers, announcing the closure of its Hanoi store on June 30th, 2025. With a decade-long presence in the industry, DANGHAIYEN embodied the quiet luxury style, a subtle display of opulence.

A statement on their website acknowledged the rapidly evolving fashion landscape and their need to pause and reassess their brand positioning to better adapt to the changing times.

DANGHAIYEN’s fan page conveyed a message of resilience, forgoing the path of noisy publicity, refraining from blaming circumstances, and seeking no sympathy. Instead, they embraced the challenges posed by the dynamic market and the lightning-fast growth of social media, choosing to focus on learning, connecting, and retelling their story in a way that resonates.

With these announcements, June witnessed the departure of two prominent local brands from the fashion scene. While DANGHAIYEN closed its physical store, LUU VIETANH bid adieu to the market entirely.

The fashion industry has experienced significant upheaval, with numerous local brands struggling to withstand market pressures. Earlier this year, MOT, a shoe brand established in 2018, also bid farewell, unable to navigate the challenging landscape.

Similarly, Lep’, an eight-year-old fashion brand, closed its doors in late 2024, citing their inability to keep up with the rapidly changing trends and the influx of new, affordable styles.

The founder of Lep’ candidly shared the challenges of keeping up with the market’s relentless pace and the endless emergence of new styles and products at competitive prices.

Additionally, Catsa, a well-known fashion brand in Ho Chi Minh City, met its end in late 2024 after a successful 13-year run. Following the announcement of their closure, all Catsa stores in the city have ceased operations.

Catsa’s founder, Linh Cat, shared that the decision to close the brand was planned since late 2023, as she felt they had reached their peak and further growth would be challenging.