An investigation into the time scale for the emergence of a market for western clothing in Vietnam

Abstract

This research investigates the market for Western clothing in Vietnam, one of the most under‐developed countries of South East Asia. The intention is to look at factors which will assist economic development in Vietnam because economic growth generally leads to greater GDP per capita and this in turn leads to greater spending per capita on clothing. The country is making use of direct foreign investment (DFI) from the ‘Asian Tigers’ to modernise its industry. The lighter manufacturing industries, which include apparel, are expected to benefit. The population of Vietnam welcome this investment and the employment it is creating, and as the labour force changes from agrarian to urban the GDP is expected to rise. This rudimentary clothing industry is being established in Vietnam mainly to supply the markets in Asia but there are indications that there is a growth of local demand for western clothing. In this research the access to retail western clothing in Vietnam is explored from both secondary and primary data sources, and, conclusions drawn incorporating the economic prospects for the future size of the market. The results of the research show that although the country is experiencing strong growth now and there is demand for western clothing the future market will be small.