return icon Vietnamnet.vn

Foreign cosmetics brands flock to Vietnam

With revenue of $2.35 billion in 2018 and an annual growth rate of 25-30 percent per annum, the Vietnamese market is highly attractive to foreign brands.

$2.35 billion is the value of the Vietnamese cosmetics market estimated by Yano Institute. It is expected that the growth rate of the skincare and make-up market will be 15-20 percent in the next 10 years.

 

{keywords}



A report shows that 16.3 percent of Vietnam’s population belonged to the middle class in 2018, while the figure is expected to increase to 33 million by 2020.

Women aged 25-45 with monthly income of at least VND20 million and more spend about VND500,000 a month on make-up.

The high growth rate of the industry has also conributed by the strong development of e-commerce. A survey by Q&Me found that 57 percent of make-up users bought products online and 72 percent bought via social networks.

The high growth rate of the industry has also conributed by the strong development of e-commerce. A survey by Q&Me found that 57 percent of make-up users bought products online and 72 percent bought via social networks.

Nguyen Manh Tan from Haravan cited a report as saying that in e-commerce, the revenue from cosmetics is just second to fashion products.

The attractiveness of the Vietnamese cosmetics market also comes from tax preferences. Vietnam is a member of many FTAs, in whuch tariffs have been that lower prices on products.

Since 2015, when the Vietnam-South Korea FTA took effect, the tariff has been cut to 0-5 percent, paving the way for more imports from South Korea to enter Vietnam.

The Vietnam Association of Cosmetics - Flavoring and Essential Oil reported that there are 400 cosmetic enterprises, including 100 foreign enterprises. Most global cosmetics brands, from middle- to high-end are present in Vietnam, such as L’Oreal, Kanebo, Ohui, Whoo, Theo Body Shop, The Faceshop, L’Occitane, Dior, Chanel and MAC.

In terms of market coverage, South Korean cosmetics are the most popular in Vietnam which account for 30 percent of market share. The products from the EU rank second with 23 percent, followed by Japanese 17 percent, Thai 13 percent, the US 10 percent and other countries 7 percent.

Observers said South Korean brands are favored because these are Asian brands, believed to be more suitable to Vietnamese skin. The products have more reasonable prices than European ones.

Both South Korean and European brands have been expanding their network in Vietnam and running sale promotion campaigns to lure more customers.

In June 2019, Clinique from France opened an authorized shop on Lazada website after it opened 11 physical shops in Hanoi and HCMC.

Chi Mai 

 

Japan’s cosmetics and drugstore chain to open in Vietnam

Japan’s cosmetics and drugstore chain to open in Vietnam

Vietnam’s Lotus Food Group and Japan’s Matsumoto Kiyoshi Holdings have inked a business cooperation deal, said the Japanese famous drugstore chain on July 16.

MORE NEWS

Planning and Investment Ministry releases round-up of business results

The Ministry of Planning and Investment (MPI) has just released the Enterprises White Book 2022, which confirmed the ratio of loss-making foreign-invested enterprises (FIEs) is much more than other sectors.

Putting Vietnamese silk on the world map

VN has a long tradition of silk production and silk weaving. However, the Vietnamese silk brand is faint on the world map, a silent shadow behind foreign big brands.

Facilitating capital flows

Vietnam’s stock and property markets are struggling with volatile capital flows. If the situation is not properly tackled, dire consequences would be unavoidable.

Young singers entertain fans with new content

Young Vietnamese singers have been busy bringing new music content to audiences from now to the year end.

PM inspects infrastructure projects in HCM City

PM Pham Minh Chinh on November 27 inspected a number of infrastructure projects in HCM City, including the expansion of Binh Hung waste treatment plant, the construction of Ben Luc-Long Thanh expressway and the upgrading of National Highway 50.

Tiny traditional houses provide cultural model

To teach future generations about the symbolic meaning of the traditional house, an artisan in Plei Kte Village in the central province of Gia Lai has weaved many miniature communal houses from bamboo wicker.

Authentic Korean flavour in Hanoi

Dalgoogi Makchang is located in the Nam Trung Yen urban centre in Cau Giay District, which is dubbed as “little Korea”, about 10km from central Hanoi.

VIETNAM BUSINESS NEWS NOVEMBER 27

Vietnam, UK yet to tap potential of trade deal

Vietnam’s products make their brands

Vietnam is considered one of Southeast Asia’s most booming high-end product markets, worth nearly US$1 billion. Recent years have seen the domination of foreign products through official agents and hand-carried goods.

Van Long Lagoon in pristine beauty

As the largest wetland nature reserve with imposing mountain ranges amid a vast lake, Van Long Lagoon in Ninh Binh Province has been recognized as “the largest natural picture in Vietnam” by the Vietnam Book of Records.

VIETNAM NEWS HEADLINES NOVEMBER 27

NA Standing Committee to consider important issues at 17th session

UN official visits Vietnam Department of Peacekeeping Operations

UN Under-Secretary-General for Peace Operations Jean-Pierre Lacroix on November 26 visited the Vietnam Department of Peacekeeping Operations as part of his visit to Vietnam.

Rice, drone and milling machines

For the first time, the Vietnam International Agricultural Trade Fair 2022, held in Can Tho City in the Mekong Delta on November 2, featured a variety of high-technology equipment for agricultural production.

Duy Nhat wins inaugral 60kg Lion Championship MMA belt

After five five-minute rounds, the judges scored the contest 48-47 46-49 49-46, crowning Dut Nhat Lion Championship’s first 60kg champion by split decision.

Agricultural sector aims to raise organic fertilizer proportion to 25% in 2025

The Ministry of Agriculture and Rural Development (MARD) has set a target of raising the proportion of organic fertilizer products authorised for circulation to 25% in 2025.
back_to_top