With growing brand awareness, fashion consciousness and rising demand for quality clothes, sales of clothes in Vietnam are projected to grow at a CAGR of around 15% by the end of 2012, according to a new research report by Vietnam Retail Analysis (2008-2012).

The report further says that while Vietnam’s domestic garment market is largely export-oriented, local demand for better quality clothing is also keeping pace with rising brand awareness and consumer-oriented society.

As Vietnam has recently acquired the WTO membership, growth prospects for its textiles and garments industry have shown more promise as it has a potential to increase exports to the US and Europe (the biggest export markets for Vietnam) without any quota limitations. Besides, rise in textile exports will also enable Vietnam to generate more jobs and increase foreign exchange. In the backdrop of these factors, the Vietnamese apparel industry is expected to grow at a CAGR of 9.95% from 2007 to 2011.