The rise of Vietnam’s demand for skincare and beauty products highlights their strong position as a highly attractive destination for cosmetic businesses. Revenue in the Vietnam beauty and personal care market amounts to 2.3 billion USD in 2021, and the market is expected to grow annually by 6% (CAGR 2021-2025).

International brands (e.g., from South Korea, Europe, Japan, Thailand, US) account for 90% of the cosmetics market in Vietnam. They have a natural advantage in the market as high-quality imported cosmetics designed for young consumers are among the most in-demand products in Vietnam. On top of that, the government of Vietnam has made considerable efforts to sign trade agreements with many countries, through which taxes on imported cosmetics are to be reduced to between 0%-5% in hopes of fostering accelerated growth in the sector.

International brands dominate among local consumers, which emphasizes the exceptional opportunities for international cosmetics companies in this rapidly growing jurisdiction. However, it can be a challenging journey for business operators to enter the Vietnamese market, and to fully comply with local law, due to their strict and unique regulations. Cosmetic companies must register their products with the Drug Administration of Vietnam, each SKU needs a separate product registration, and any cosmetics advertisement in the media must be registered and approved by the local Department of Health before being shown publicly.

To navigate companies through key areas of local legal framework, leading Southeast Asian law firm Tilleke