Clothing sales in Vietnam are forecast to grow at nearly 15% year-on-year by the end of 2012, helped by soaring demand for better quality apparel and rising brand awareness, a new report says.

In its report 'Vietnam Retail Analysis (2008-2012),' research firm RNCOS says that while Vietnam's domestic garment market is largely export-oriented, local demand for branded clothing is on the rise.

Top-end designer brands such as D&G, Gucci and Valentino have been well accepted by the Vietnamese, but are still too expensive for most of the people.

However, cheaper brands like Bossini, Giordano and Mango are popular with people living in big cities owing to their lower prices.

Growth prospects for Vietnam's textile and garment manufacturing industry are also good, the report says, with a year-on-year rise of 9.95% forecast from 2007 to 2011.