Following the announcement, Uniqlo will begin recruiting local staff as it prepares to open its store in “one of the region’s most exciting, high-growth economies.”

“Our entry into Vietnam is an exciting milestone for everyone at Uniqlo. The Southeast Asia region has been an important driver of growth for us, and we are pleased and optimistic about our opportunity to be a part of such an exciting economy and retail market,” said Tadashi Yanai, chairman, president and CEO of Fast Retailing, the parent company of Uniqlo.

“We look forward to introducing Uniqlo and our high quality, affordable LifeWear apparel in Vietnam, and to making a positive contribution to the economy and communities where we operate,” he added.

The first Uniqlo store will be located in Ho Chi Minh City, which will be operated through a joint venture between Fast Retailing and Mitsubishi Corporation, who will own 75% and 25% of the company, respectively, reportedNikkei Asian Review. According to Fast Retailing, Uniqlo will focus on establishing its presence and brand in this region before considering other areas. 

The Japanese retailer plans to double the number of its stores in Southeast Asia and Oceania to about 400 by 2022. Uniqlo’s global network spans 20 markets in Asia, Europe, North America and Australia, operating roughly 2,000 stores, according to the company.

For a population of nearly 100 million, of which the majority is at young age and with a steady growth of income per capita, Vietnam is considered potential market for fashion retailers.

In the first six months of 2018, revenue in Vietnam of the Indonesian retail operator Mitra Adiperkasa, the operator of two Zara stores in Hanoi and Ho Chi Minh City, reached VND950 billion (US$40.87 million), doubling the figure recorded in the same period of last year, stated the Mitra’s financial statement. 

Meanwhile, H&M with four stores posted revenue of VND322 billion (US$13.85 million) in the January – June period, of which, the fast fashion brand reported revenue of VND175 billion (US$7.52 million) in the second quarter, up 16% month-on-month, reported The Leader newspaper.