Log in
Business

Vietnam – a land of promise for global fashion brands: Fast Retailing CEO

Vietnam is on track to become one of the biggest consumer markets in the world, said Japan’s richest man and CEO of Fast Retailing Tadashi Yanai.

Vietnam with its young population is a land of promise for global fasion brands, including Uniqlo, according to Tadashi Yanai, founder and president of Fast Retailing, Uniqlo’s parent company.

 Tadashi Yanai, founder and president of Fast Retailing (middle). Source: VnExpress.

Vietnam has massive potential and will be one of the biggest consumer markets in the world, Yanai told local reporters at a press conference on December 5, one day before the launch of Uniqlo’s first store in Vietnam.

The shifting trend of production facilities from China to Vietnam is due to various reasons, but the most important one is the high quality of made-in-Vietnam products whichmeet growing demands of the world market, added Yanai.

Yanai said he expected Uniqlo to soon launch its second store in Hanoi, and gradually open hundreds of stores nationwide.

Uniqlo is expected to face fierce competition from other renowned fashion houses such as H&M and Zara, along with other domestic brands for Vietnam’s market, which is estimated by Seedcom venture capital at US$5 billion in 2018, and US$7 billion in 2023.

Osamu Ikezoe, co-chief operating officer of Uniqlo Vietnam, previously said Uniqlo Dong Khoi, located in Ho Chi Minh City, would be the largest Uniqlo store in Southeast Asia, adding he hopes it will become a new magnetic focal point of Ho Chi Minh City’s lively retail scene.

Uniqlo Dong Khoi will be operated through a joint venture between Fast Retailing and Mitsubishi Corporation, who will own 75% and 25% of the company, respectively, reported Nikkei Asian Review.

Vietnam is one of the key markets for Uniqlo, which currently has more than 2,000 stores worldwide and plans to quadruple the number of stores in Southeast Asia to 800 in 10 years.

Apart from operating the retail market, Fast Retailing also counts Vietnam as its second largest manufacturing hub after China as it already has 50 disclosed suppliers in the country.

Yanai said that Uniqlo exports US$3 billion worth of products from Vietnam annually. He said that due to the quality of Vietnamese-made products,they are accepted worldwide. "Vietnam will have increasing presence in the world market," he added.

According to Nikkei, Yanai told media earlier this year that the company's dependence on Chinese suppliers would decrease over time as it expands production faster in other countries, in hopes that the diversified supply chain would absorb geopolitical risks and economic changes. In about two years, the number of disclosed factories in Vietnam rose by 60%.

Tadashi Yanai was named as the world’s 31st richest person by Forbes and the richest man in Japan, with net worth of US$24.9 billion.

Reactions:
Share:
Trending
Most Viewed
Related news
Uniqlo shifting production to Vietnam

Uniqlo shifting production to Vietnam

31 Mar, 13:12

China still remains Uniqlo its number 1 production hub, but Vietnam`s growing importance to the Japanese casual clothing chain did not go unnoticed.

H&M, Syre Group to expand retail, green textile industries in Vietnam

H&M, Syre Group to expand retail, green textile industries in Vietnam

Swedish companies plan to expand green investment in Vietnam's textile and garment industry.

Vietnam’s AI economy to reach US$130 billion by 2040 

Vietnam’s AI economy to reach US$130 billion by 2040 

The report identified AI as a key driver of Vietnam’s future economic growth.

Hanoi breaks ground on $7.3 million craft village industrial cluster

Hanoi breaks ground on $7.3 million craft village industrial cluster

The new craft village industrial cluster will help ease the shortage of production space for local households and businesses.

Prime Minister calls for Swedish investment in Vietnam’s tech infrastructure

Prime Minister calls for Swedish investment in Vietnam’s tech infrastructure

Vietnam places a high priority on partnering with trusted, long-time friends like Sweden in advancing high-tech sectors, as it seeks to attract quality investment and foster sustainable development.

E-commerce platforms to pay taxes on behalf of sellers 

E-commerce platforms to pay taxes on behalf of sellers 

Under the new rules, a portion of each transaction will be deducted to pay taxes once payment is completed.

French leading corporations propose nuclear power, high-speed rail cooperation in Vietnam

French leading corporations propose nuclear power, high-speed rail cooperation in Vietnam

Top French firms like EDF, Alstom, and Thales are looking to partner with Vietnam on nuclear power, high-speed rail, and aerospace projects.

Vietnam's firm launches the Philippines' first electric taxi service

Vietnam's firm launches the Philippines' first electric taxi service

The Philippines is GSM’s fourth market after Vietnam, Laos, and Indonesia, signaling a significant step in its Go Green Global strategy for expanding electric vehicles internationally.

Qualcomm's Hanoi-based AI R&D center is the 3rd largest globally 

Qualcomm's Hanoi-based AI R&D center is the 3rd largest globally 

The establishment of Qualcomm's new Artificial Intelligence Research and Development Center reflects Vietnam’s efforts to attract global tech investment and talent, aligning with its ambition to become a regional AI powerhouse.