Fiona Nanna, ForeMedia News

3 minutes read. Updated 1:00PM GMT Wed, July 3, 2024

Iconic brands Rene Caovilla and Cartier have made their grand debut at the Union Square shopping center in Ho Chi Minh City. Rene Caovilla, celebrated for its high-end women’s shoes, and Cartier, renowned globally for its exquisite jewelry and watches, are the latest additions to the country’s expanding luxury retail landscape. They join other prestigious brands such as luxury mobile phone retailer Vertu and Swiss watchmaker Franck Muller, which have already established a presence in Vietnam.

Vietnam’s luxury market is experiencing rapid growth, driven by the country’s economic development and an increasing number of affluent consumers. According to Statista, Vietnam’s luxury goods market is projected to generate $992 million in revenue in 2024, with a compound annual growth rate (CAGR) of 3.10% from 2024 to 2028. This robust growth highlights the country’s rising demand for high-end products and the expanding purchasing power of its consumers.

However, the influx of luxury brands has led to a scarcity of prime retail space in key areas. Trang Bui, the Country Head at Cushman & Wakefield Vietnam, noted earlier this year that no new supply of prime retail locations in central Ho Chi Minh City is expected over the next two years. This shortage of premium retail space is creating fierce competition among luxury brands seeking to establish a foothold in Vietnam’s bustling commercial hubs.

The heightened competition is also driving up retail rents. Commercial real estate firm CBRE reported that in the first quarter of 2024, the average asking rent for prime retail locations in Ho Chi Minh City reached nearly $240 per square meter per month, representing a 1.8% year-over-year increase. The central business district (CBD) area, in particular, shows minimal vacancy, with a rate of just 4.7%, underscoring the high demand and limited availability of top-tier retail spaces.

The entry of Rene Caovilla and Cartier into Vietnam’s luxury market underscores the country’s growing importance as a key destination for high-end brands in Southeast Asia. For these luxury retailers, Vietnam presents both significant opportunities and challenges—while the market for luxury goods is expanding, the competition for prime retail locations requires strategic planning and innovation.

For further insights into Vietnam’s luxury market and retail trends, visit Cushman & Wakefield Vietnam and CBRE Vietnam.