Export to Vietnam – Cosmetics market values US$2 billion, dominated by foreign brands

December 2018 – Vietnam has a GDP of $220 billion and population of 92 million, around 60% is below the age of 35. It is expected to have 33 million middle-income earners by 2020, based on the facts that Vietnam’s GDP will grow by more than 6%/year.

Vietnam’s cosmetics import value was reported that it increased from $500 million in 2011 to $1.1 billion in 2016 and it may reach $2.35 billion by 2018. Besides, Vietnam has joined more than ten  free trade agreements with many countries, which push to reduce the  import tariffs on cosmetics to 0 – 5%. With advantages of having plenty of natural materials (such as coconut, turmeric) and young labor force at reasonable cost, Vietnam is an attractive place for international cosmetics manufacturers and investors.

Foreign brands are dominating the cosmetics market, especially the high-end market segment. A report found that 90 percent of the revenue of the cosmetics market goes into the pockets of foreign manufacturers, especially South Koreans. Most of famous brands are sold in luxury trade centers or brand stores in  Vietnam from the high-class (Dior, Chanel, Estee Lauder, Menard), middle (Clinique, Bobbi Brown, Vichy, Kanebo etc) from USA, Europe, Japan and Korea. The popular ones are sold in normal stores and supermarkets (like Nivea).

Vietnamese brands hold a very small market share and their products can be sold only in the low-end market segment, which bring modest profits. Aware of the great potential of the domestic cosmetics market, Vietnamese companies have poured money into production projects. However, their weaknesses are low budget for R&D, advertisement and marketing.

Customer insights

Vietnamese people prefer using cosmetics and beauty products to have a white mild skin and they have been more interested in natural cosmetics. The consumers have tended to buy more skin cleansing, sun protection cream and lipsticks.

The demand for natural cosmetics has increased from spas (about 2,000 spas open in Vietnam each year) and individuals (both women and men). People like shopping in supermarkets, however, they prefer to purchase cosmetic products online or in luxury trade centers.

In the past, people used to buy unbranded products which were cheap and sold widely in traditional markets across Vietnam. However, thanks to better economic performance and strong development of social and internet networks, more consumers in rural areas had the opportunity to buy imported branded products from reliable sources. They were willing to spend more on branded ones with high quality. These factors help to boost retail value sales in beauty and personal care in 2017.

Registration and License

According to Vietnam Law, cosmetic products must be registered with Ministry of Health before import. You must have a subsidiary company or an importer in Vietnam to apply for the cosmetic product registration. The manufacturer/the owner shall authorize the importer in Vietnam to handle the registration.This partner will hold the product registration. If you wish to change the importer, you must re-apply new registration with new Importer. 

Imported cosmetic Products imported into Vietnam must be compliant with Asean harmonized cosmetic regulatory, in which, some specific ingredients shall subject to limitation of ratio or prohibition. You will have to check with the regulations.

It takes about 30 days from submission of application dossier to the competent authority in a straightforward case to register. If your cosmetic products have CO from countries that have FTAs with Vietnam. Your products shall enjoy preferred import duty. It also happens if you export your products from Vietnam to surrounding countries.

Documents for registration:

  • Filling the form of notification of cosmetic product (MOH form)
  • Authorization letter of the manufacturer to the Client in Vietnam, authorized to carry out all necessary procedures to notify the cosmetic products at Drug Administration – Ministry of Health. This document must be legalized by the Consulate of Vietnam in the host country.
  • A notarized copy of Business Registration Certificate of the Client in Vietnam, the business aspect: “cosmetic trade” must be available.
  • Certificate of Free Sale (or Permit of Circulation) 

 

514 thoughts on “Export to Vietnam – Cosmetics market values US$2 billion, dominated by foreign brands

  1. Jackie says:

    I am not sure where you’re getting your information, but great topic.
    I needs to spend some time learning much more or understanding
    more. Thanks for excellent info I was looking for this info for my mission.

  2. Tamera says:

    When I initially commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get several e-mails
    with the same comment. Is there any way you can remove me from that
    service? Thank you!

  3. Maryann says:

    I’m amazed, I have to admit. Rarely do I encounter a blog that’s both educative and engaging, and without a doubt, you’ve hit
    the nail on the head. The problem is something which not enough people are speaking intelligently about.
    I’m very happy I found this during my hunt for something relating to this.

  4. Ramiro says:

    Woah! I’m really enjoying the template/theme of this blog.
    It’s simple, yet effective. A lot of times it’s challenging to get
    that “perfect balance” between superb usability and visual appearance.
    I must say you’ve done a very good job with this.

    Additionally, the blog loads super fast for me on Internet explorer.
    Excellent Blog!

  5. Azucena says:

    You really make it seem so easy with your presentation but I find this topic to be really
    something which I think I would never understand.
    It seems too complicated and extremely broad for me.
    I’m looking forward for your next post, I’ll try to get the hang of it!

  6. Muoi says:

    I’m really enjoying the theme/design of your weblog.
    Do you ever run into any web browser compatibility issues?
    A handful of my blog visitors have complained
    about my website not operating correctly in Explorer but looks great
    in Safari. Do you have any solutions to help fix this problem?

  7. Francine says:

    This design is spectacular! You obviously know how to keep a
    reader entertained. Between your wit and your videos,
    I was almost moved to start my own blog (well, almost…HaHa!) Excellent job.

    I really loved what you had to say, and more than that, how you presented it.
    Too cool!

  8. Yetta says:

    Today, I went to the beach with my kids. I found a sea shell and gave it to my
    4 year old daughter and said “You can hear the ocean if you put this to your ear.” She placed the shell
    to her ear and screamed. There was a hermit crab inside and it
    pinched her ear. She never wants to go back!
    LoL I know this is completely off topic but I
    had to tell someone!

  9. Jocelyn says:

    I’m really enjoying the design and layout of your site. It’s a very easy on the eyes which makes it
    much more pleasant for me to come here and visit more
    often. Did you hire out a designer to create your theme?
    Outstanding work!

  10. Kristi says:

    Hmm it appears like your blog ate my first comment (it was extremely long)
    so I guess I’ll just sum it up what I had written and say, I’m thoroughly enjoying your blog.
    I too am an aspiring blog blogger but I’m still new to everything.
    Do you have any helpful hints for first-time blog writers?

    I’d certainly appreciate it.

  11. Lenora says:

    Hi there, I discovered your blog by means of
    Google at the same time as searching for a comparable matter, your site came up, it
    looks great. I have bookmarked it in my google bookmarks.

    Hi there, simply changed into aware of your blog through Google, and found that it
    is truly informative. I’m gonna be careful for brussels.
    I will be grateful in the event you proceed this in future.
    Many folks will be benefited out of your writing.
    Cheers!

  12. hi says:

    Hi there, I discovered your blog by way of Google while searching for a related topic, your website got here up, it appears to be like good. I’ve bookmarked it in my google bookmarks.

  13. Shelly says:

    I was wondering if you ever thought of changing the
    structure of your blog? Its very well written; I love what youve got to say.
    But maybe you could a little more in the way of content so people could connect with it better.
    Youve got an awful lot of text for only having one or two images.
    Maybe you could space it out better?

  14. Bette says:

    Hello There. I discovered your blog the use of msn. That is a very well written article.

    I’ll be sure to bookmark it and return to read extra of your useful information. Thanks for the
    post. I will certainly return.

  15. Arron says:

    Hey I know this is off topic but I was wondering if you knew
    of any widgets I could add to my blog that automatically
    tweet my newest twitter updates. I’ve been looking for a
    plug-in like this for quite some time and was hoping
    maybe you would have some experience with something like this.
    Please let me know if you run into anything.
    I truly enjoy reading your blog and I look forward to your new updates.

  16. Yvonne says:

    Greetings! Quick question that’s completely off topic.
    Do you know how to make your site mobile friendly? My website looks weird when viewing from my iphone 4.
    I’m trying to find a theme or plugin that might be able to resolve this issue.
    If you have any recommendations, please share.
    Thank you!

  17. Gita says:

    I’m extremely impressed with your writing skills as well as with the layout on your weblog.
    Is this a paid theme or did you modify it yourself? Anyway keep up the excellent quality writing,
    it is rare to see a great blog like this one these days.

  18. Juli says:

    I’ll right away snatch your rss as I can not in finding your e-mail subscription hyperlink or e-newsletter service.
    Do you’ve any? Kindly permit me understand in order that I could subscribe.
    Thanks.

  19. Bailey says:

    Hey there! I’ve been reading your website for a while now and finally got the courage to go ahead and give you a shout out from Atascocita Texas!
    Just wanted to tell you keep up the fantastic work!

  20. Genie says:

    Can I simply say what a comfort to uncover
    someone who genuinely knows what they’re discussing on the internet.
    You actually know how to bring a problem to light and make it important.

    More and more people need to look at this and understand
    this side of your story. It’s surprising you
    are not more popular since you definitely possess the gift.

  21. Lavern says:

    Nice blog here! Also your website so much up very fast!

    What host are you the use of? Can I am getting your associate link on your host?
    I want my site loaded up as quickly as yours lol

  22. Claire says:

    I loved as much as you will receive carried out right
    here. The sketch is attractive, your authored subject matter stylish.
    nonetheless, you command get got an edginess over that you
    wish be delivering the following. unwell unquestionably come more formerly again since exactly the same nearly a lot often inside case you
    shield this hike.

  23. Jared says:

    I’ll immediately snatch your rss feed as I can’t in finding your email subscription link or newsletter service.
    Do you’ve any? Please let me understand so that I may just subscribe.

    Thanks.

  24. Theresa says:

    Its such as you read my thoughts! You seem to grasp
    a lot approximately this, like you wrote the guide in it or something.
    I feel that you could do with some p.c. to pressure the message home a little bit, however other than that, this is magnificent blog.
    A fantastic read. I will certainly be back.

  25. Jimmie says:

    Definitely believe that that you said. Your favorite justification appeared to
    be on the net the simplest thing to have in mind of. I say to you, I certainly get annoyed at the same time as other people think about concerns that they
    plainly do not recognise about. You controlled to
    hit the nail upon the highest as neatly as defined out the whole thing with no need side-effects , other people can take a signal.
    Will likely be again to get more. Thanks

  26. Jaclyn says:

    Just wish to say your article is as astounding. The clearness in your post is simply spectacular and i can assume you are an expert on this
    subject. Fine with your permission allow me to grab your RSS feed to keep updated
    with forthcoming post. Thanks a million and please keep up
    the gratifying work.

  27. Stella says:

    Hola! I’ve been reading your weblog for a while now and finally got the courage
    to go ahead and give you a shout out from New Caney Tx! Just wanted to mention keep up the
    fantastic work!

  28. Donny says:

    Hey I know this is off topic but I was wondering if you knew of any widgets I could add to my blog that automatically tweet
    my newest twitter updates. I’ve been looking for a plug-in like this for quite
    some time and was hoping maybe you would have some experience with something like
    this. Please let me know if you run into anything.

    I truly enjoy reading your blog and I look forward to your new updates.

  29. Renee says:

    I really like what you guys are usually up too. Such clever work and coverage!
    Keep up the awesome works guys I’ve incorporated you guys to my personal blogroll.

  30. Shirleen says:

    I don’t even know how I ended up right here, however I believed this publish
    was once good. I do not understand who you might be but definitely you’re going to a famous
    blogger in case you aren’t already. Cheers!

  31. Guillermo says:

    Hi there, just became aware of your blog through Google, and found that
    it’s really informative. I am going to watch out for brussels.

    I will appreciate if you continue this in future. A lot of people will be benefited from
    your writing. Cheers!

  32. William says:

    Hello There. I found your blog using msn. This is an extremely well written article.
    I’ll make sure to bookmark it and return to read more of your useful info.
    Thanks for the post. I will definitely comeback.

  33. Halley says:

    You’re so interesting! I do not suppose I have read through
    something like this before. So good to find someone with a few unique thoughts
    on this subject matter. Really.. thanks for starting this up.
    This web site is something that is needed on the
    internet, someone with a bit of originality!

  34. Trey says:

    Hi just wanted to give you a quick heads up and let you know a few of the images aren’t
    loading properly. I’m not sure why but I think its a linking issue.
    I’ve tried it in two different web browsers and both show the same results.

  35. Delila says:

    Hi there, There’s no doubt that your website could be having browser compatibility issues.
    Whenever I take a look at your website in Safari, it looks fine but when opening in I.E., it’s got some overlapping issues.
    I merely wanted to give you a quick heads up!
    Other than that, excellent website!

  36. Allen says:

    You can certainly see your skills in the article you write.
    The arena hopes for even more passionate writers such as you who aren’t afraid to say how they believe.
    All the time follow your heart.

  37. Steve says:

    Hi, I do believe this is an excellent blog. I stumbledupon it 😉 I may come back
    yet again since i have book marked it. Money and freedom is the best way to change, may you be
    rich and continue to help other people.

  38. Kendall says:

    I am really loving the theme/design of your weblog. Do you ever run into any browser compatibility issues?
    A small number of my blog visitors have complained about my website not operating correctly
    in Explorer but looks great in Chrome. Do you have any solutions to help fix this problem?

  39. Pingback: bahis siteleri

  40. rama says:

    whoah this blog is wonderful i really like reading your articles. Keep up the great paintings! You realize, a lot of people are hunting round for this info, you could help them greatly.

Trả lời

Email của bạn sẽ không được hiển thị công khai.