The domestic cosmetics market has never been as vibrant as it is at present, with Vietnam having joined various free trade agreements which slash import tariffs on cosmetics to 0 – 5 percent.
The assessment was released at an event to introduce the Mekong Beauty Show 2017 in Ho Chi Minh City on February 23.
Statistics show that Vietnam’s cosmetics market is potential with revenue of 26 trillion VND (1.14 billion USD) in 2015 and has maintained a double-digit growth rate for several years.
While Vietnamese consumers’ spending on cosmetics is still four-five times lower than other regional countries, the middle class, which has high demand for beauty products, is growing strongly and forecast to double its current size to 33 million people in 2020.
Ly Nguyen Lan Phuong, a representative of the Saigon Cosmetics Corporation, said despite such huge potential, domestic businesses’ technological capacity and financial strength remain modest. As a result, the local market is still dominated by foreign brands.
Claudia Bonfiglioli, International Director of Informa Beauty, said to compete in the domestic market, aside from improving quality, cosmetics producers of Vietnam should keep innovating.
Nguyen Van Minh, Vice Chairman of the Vietnam Association of Oils, Aroma and Cosmetics, said to help promote the industry’s development, the association has carried trade and investment promotion activities.
Among those efforts, the Mekong Beauty Show 2017 is aimed to connect Vietnamese enterprises with other domestic and foreign partners to seek cooperation opportunities. It is also expected to become a leading trade forum on cosmetics and beauty products in the region.
The show is slated for June 15-17 with the participation of more than 200 companies from the EU, the Republic of Korea, Thailand, Malaysia and Singapore.