Sustainability in fashion manufacturing is a recent trend in many countries. Due to increased global pressure, strict legislation and consumer awareness, many global fashion brands are adopting sustainable practices in manufacturing and distribution. Adoption of sustainability into business development helps the brands enhance their performance in the competitive global market. For established global luxury fashion brands, the implementation of sustainability is much easier compared to the local luxury fashion brands. The adoption of sustainable practices in corporate social responsibility and eco-friendly manufacturing among local luxury fashion brands are very limited, due to several challenges they face in adopting the concept of sustainability. This research investigated the practices and challenges faced by luxury fashion brands in Vietnam to implement the concept of sustainability in manufacturing. Our findings are based on a series of in-depth interviews with the leading local luxury fashion business owners in Vietnam. We found that the concept of sustainable fashion has been evidenced through the improvement of ethnic cultures, the heavy usage of local resources, sustainable lifestyle promotion and management and thereby contributions to local environmental, economic, and social development. Local luxury fashion brands follow approaches such as implementation of corporate social responsibility, a safe working culture, and basic amenities and skill enhancement as a part of their corporate social responsibility. Several challenges that local luxury fashion brands are facing include limited funding for installing sustainable technologies, lack of skilled people, and the high cost of sustainable materials and certificates.