Catsa closed 22 stores — Chinese e-commerce underpriced every local fashion brand

Catsa was a Vietnamese fast-fashion brand founded in 2011 by Nguyễn Thùy Linh Cát, targeting young consumers with affordable, trendy clothing. At its peak it operated 40 stores across Ho Chi Minh City, later consolidated to 22, and generated annual revenue in the hundreds of billions of Vietnamese dong. The brand was built entirely on the founder's energy and vision over 13 years.

From 2022 onward, Chinese e-commerce platforms — Shein, Temu, TikTok Shop, Taobao — flooded the Vietnamese market with clothing priced below what any local manufacturer could match. Chinese goods shipped directly to consumers in 2-3 days with zero shipping fees, entered Vietnam without paying import taxes, and had lower production costs from China's integrated textile supply chain. Vietnamese brands paid taxes, complied with environmental standards, and sourced materials at higher costs.

By August 2024, Catsa had closed all 22 remaining stores. The founder said she was exhausted from competing against an unfair structural advantage: Chinese goods sold through e-commerce platforms faced no tax, no compliance costs, and had logistics subsidised by cross-border trade agreements. Rather than pivot to importing and relabelling Chinese goods, she chose to shut down the brand entirely. She shifted her focus to sustainable production and warned that without government support, Vietnamese fashion brands could disappear from their own market within 5-10 years.