Vietnam Accessories Market Outlook to 2030

Vietnam Accessories Market Overview

• The Vietnam Accessories Market is valued at USD 3.5 billion, based on a five-year historical analysis. The market is driven by a surge in consumer spending on fashion and lifestyle products, particularly as the economy grows and disposable incomes rise. Growing tourism and a shift toward e-commerce have also contributed to the expansion of this market.

• Key cities like Ho Chi Minh City and Hanoi dominate the market due to their large population, strong retail presence, and growing consumer appetite for luxury and fashion-forward items. These cities house a wide range of international brands, high-end malls, and a thriving middle-class population, making them retail hubs for both domestic and global players.
• In 2024, the Vietnamese government introduced a series of incentives for businesses adopting e-commerce platforms to sell their products, including accessories. Tax incentives and digital marketing support are among the measures aimed at driving growth in online retailing.

Vietnam Accessories Market Segmentation

By Product Type: The market is segmented by product type into jewelry, bags, footwear, belts & scarves, and watches. Among these, jewelry holds the dominant market share due to the strong cultural significance of gold and silver jewelry, especially for gifting during special occasions like weddings and festivals. Brands like PNJ (Phu Nhuan Jewelry) and SJC (Saigon Jewelry Company) have established a loyal customer base, with a strong network of retail stores. The appeal of locally crafted, high-quality jewelry also contributes to its popularity.

By Distribution Channel: The market is segmented by distribution channel into online retail, offline retail (department stores, specialty stores), direct-to-consumer, and franchising. Offline retail leads the market as consumers in Vietnam still prefer to try and feel products before purchase, particularly for high-ticket items like jewelry and premium handbags. Major malls in Hanoi and Ho Chi Minh City house international and domestic brands, creating high footfall and sales.

Vietnam Accessories Market Competitive Landscape

The market is dominated by both local and international players. Local manufacturers like PNJ have a strong foothold, particularly in jewelry, while international brands like Charles & Keith and Pedro capture the luxury and premium segments. The market is highly competitive due to the diversity of products and the expanding retail channels.

Vietnam Accessories Market Analysis

Market Growth Drivers

• Expanding Middle-Class Population: Vietnam's middle-class population is expected to reach over 25 million people by 2025, contributing to a demand for personal accessories, such as watches, handbags, and jewelry. The increase in disposable income among this demographic is driving demand for high-quality accessories and international brands.
• Tourism Surge Boosting Retail: Vietnam welcomed over 8 million international visitors in the first nine months of 2024, a rise compared to pre-pandemic levels. The influx of tourists is boosting sales of accessories in tourist-heavy locations such as Hanoi and Ho Chi Minh City. These markets have become hubs for purchasing high-end accessories, as international brands expand their presence in Vietnams retail landscape.
• Youth-Driven Fashion Trends: With over 45 million people under the age of 30, Vietnam has a young and fashion-conscious demographic. This group actively seeks accessories such as sunglasses, belts, and designer handbags to stay on-trend. The evolving preferences of this age group towards fashion-forward products drive the demand for both domestic and international accessory brands.

Market Challenges

• Rising Import Tariffs on Luxury Goods: The Vietnamese government has imposed higher tariffs on luxury goods, including high-end accessories, as part of its economic policy in 2024. The result is increased costs for importing these products, which has led to higher retail prices. This tariff policy discourages consumers from purchasing premium imported accessories, reducing demand in this segment.
• Fluctuating Currency Exchange Rates: Vietnams dong experienced fluctuations against major currencies such as the USD and EUR in 2024, leading to uncertainties in the pricing of imported goods, including accessories. This has affected the purchasing power of consumers looking to buy international accessory brands.

Vietnam Accessories Market Future Outlook

Over the next five years, the Vietnam Accessories industry is expected to see growth, driven by rising disposable incomes, growing consumer preference for sustainable and artisanal products, and the continued expansion of e-commerce channels. Increasing urbanization and the rise of middle-class consumers will contribute to demand for both luxury and affordable accessories.

Future Market Opportunities

• Sustainability to Drive Purchasing Decisions: By 2029, more Vietnamese consumers will prefer eco-friendly accessories, with demand for sustainable fashion items growing significantly. Local brands such as Hoa Tien and T He, which use recycled materials, are expected to see increased sales as awareness of environmental concerns grows.
• Rise in Customizable Accessories: The trend of personalized accessories will gain momentum over the next five years. By 2029, it is estimated that around 2 million consumers in Vietnam will seek customizable options, from monogrammed handbags to personalized jewelry, driven by a desire for unique, individualized fashion items.