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Vietnam抯 cosmetics imports double to US$6 billionThursday, January 25, 2018 > 09:18:54
Nguyen Van Minh, deputy chairman of the Vietnam Essential Oils, Aromatherapy and Cosmetics Association, said Vietnam has become an emerging market for cosmetics with average growth of 30% in recent years.
However, most cosmetics on the local market are imported. Domestic cosmetics production is still underdeveloped and Vietnamese cosmetics are mainly of low and medium grade. Last year, the country imported US$6 billion worth of cosmetics but exported only US$500 million, leading to a trade deficit of more than US$5 billion.
Many foreign cosmetic brands, especially from South Korea, Japan and Europe, have been present in Vietnam. The country has cut tariffs on cosmetics after signing a number of free trade agreements, making it even more appealing to foreign cosmetics manufacturers and retailers.
Minh said Vietnam’s cosmetics spending is much lower than in other Asian countries like Thailand and South Korea. However, along with strong economic growth, Vietnamese consumers are paying more attention to skincare and spending more on cosmetics, especially natural and organic products.
Informa Beauty division international director Claudia Bonfiglioli said Vietnam has great natural resources for organic cosmetics production and many foreign and domestic manufacturers have begun investing in this sector. However, the country has not had specific standards and ingredient requirements for, and definition of natural and organic cosmetics.
According to Minh, Vietnam has a variety of plants that can be used for cosmetics production such as aloe vera, turmeric and seaweed. Domestic businesses should use local ingredients to manufacture high-quality and safe products to increase their market share.
Bonfiglioli said using natural and organic cosmetics will become trendy in 2018. Therefore, the Mekong Beauty Show 2018 jointly held by Informa Beauty and Vietnam National Trade Fair and Advertising Company (Vinexad) in HCMC from June 14 to 16, 2018 will focus on these products.
Organizers expect to attract more than 200 cosmetic manufacturers from South Korea, Japan, Europe, Taiwan, Thailand and Singapore, among others.