Breaking Into Vietnam’s Beauty Market: Your Guide to Cosmetic Registration

Vietnam’s cosmetics market is undergoing a dynamic transformation, fueled by rising consumer demand, a growing middle class, and increased interest in beauty and personal care across all age groups. As one of Southeast Asia’s fastest-growing markets, it presents exciting opportunities for both international brands and local players. However, with rapid growth comes a set of regulatory, pricing, and market-specific challenges that require strategic navigation. In this article, we provide a complete overview of Vietnam’s cosmetics industry, including key market insights, emerging trends, and the biggest hurdles facing brands today.

Need help with Cosmetic Registration in Vietnam? Check out InCorp Vietnam’s Product Registration Services now!

1. Vietnam’s Cosmetics Market Overview

Vietnam’s cosmetics market is entering a strong growth phase, with its value estimated at USD 2.5 billion in 2024 and projected to reach USD 3.2 billion by 2030, driven by a CAGR of 4.2% between 2025 and 2030. This upward trend is powered by a fast-expanding middle class, rising disposable incomes, and increasing consumer prioritization of personal care and beauty products.

In 2023, Vietnam’s middle-class population reached approximately 97 million, representing 13% of the population, and is expected to grow to 26% by 2026. With per capita income projected to rise to USD 7,500 by 2030, consumers are increasingly willing to spend on higher-quality, branded cosmetics. This growing demand has prompted major global players like L’Oréal and Unilever to strengthen their investment strategies in Vietnam, while local brands have broadened their product portfolios to remain competitive.

The market’s dynamism is also supported by a surge in cosmetics imports, which are forecasted to grow from USD 789 million in 2021 to nearly USD 934 million by 2026. Vietnam sources a wide range of beauty and personal care products from countries such as Singapore (USD 311 million), Thailand (USD 137 million), the EU (USD 108 million), and China (USD 82 million). Currently, 90% of the market is dominated by foreign brands, underscoring strong demand for international products and highlighting the opportunities for global entrants.

As Vietnam’s consumer landscape continues to evolve, the cosmetics sector offers a highly attractive environment for both established brands and new market entrants aiming to capitalize on the country’s expanding purchasing power and growing appetite for personal care innovation.

Read Related: An Ultimate Guide To Product Registration in Vietnam

2. Key Rules and Regulations For Cosmetics Registration in Vietnam

As Vietnam’s cosmetics retail sector experiences rapid growth, regulatory authorities are facing increased pressure to ensure product quality, consumer safety, and environmental compliance. Between 2012 and 2022, the Drug Administration Department significantly ramped up post-market surveillance, conducting inspections of 309 domestic and imported cosmetics manufacturers. These efforts led to the recall of over 3,310 products and the withdrawal of 519 items deemed substandard or non-compliant.

To strengthen regulatory oversight and keep pace with industry expansion, the Drug Administration Department under the Ministry of Health is drafting a comprehensive decree, scheduled for consultation and release by 2025. This new framework aims to bring Vietnam’s regulations in closer alignment with international best practices and the ASEAN Cosmetics Regulatory Scheme.

The upcoming decree is expected to introduce three key policy pillars:

1. Enhanced Pre-Market Controls: Regulations around product declarations will be tightened, with greater scrutiny of documentation relating to product claims, functionality, and overseas manufacturing. The objective is to elevate product standards and ensure alignment with global safety benchmarks.
2. Stronger Post-Market Surveillance: In response to technological advancements and evolving consumer expectations, the government will enhance post-market monitoring using digital tools. Plans include building a national cosmetics database, digitizing regulatory procedures through e-government platforms, and expanding legal authority for regulatory agencies to improve enforcement capabilities, balancing business facilitation with consumer protection.
3. Elevating Domestic Product Standards: To support the local cosmetics industry, the decree will introduce measures to strengthen manufacturing practices in accordance with ASEAN Cosmetic Good Manufacturing Practice (CGMP) standards. This includes improving traceability, refining product recall protocols—especially for online sales—and introducing a national cosmetic identification code to ensure authenticity and transparency.

These regulatory developments reflect Vietnam’s strategic push to formalize and modernize its fast-growing cosmetics sector, making it more competitive, consumer-focused, and globally aligned. Businesses looking to enter or expand in this market must prepare for a more structured compliance environment—one that rewards transparency, quality, and innovation.

3. Key Market Opportunities for Cosmetics Companies in Vietnam

Vietnamese people are becoming more health-conscious, and are paying close attention to the ingredients of beauty products in the market. This shift in consumer mindset is creating strong demand for organic and herbal beauty products, opening the door for both new market entrants and established brands looking to expand.

For investors, domestic production and distribution of organic cosmetics present a compelling opportunity. Vietnam offers cost-effective access to a rich supply of natural ingredients, including coconut (abundant in the Mekong Delta), turmeric, green tea, and aloe vera—native ingredients widely valued for their skin-healing and nourishing properties. This provides a solid foundation for companies seeking to formulate clean-label, locally sourced products.

Additionally, Vietnamese consumers, particularly Generation Z, are increasingly prioritizing quality and natural formulations in their personal care routines. This has led global players like L’Oréal and Beiersdorf (Nivea) to launch product lines featuring oil-based, ammonia-free, and natural skincare solutions in the Vietnamese market.

The rise of e-commerce platforms such as Lazada, Shopee, and Tiki has further fueled the growth of the beauty industry by making product discovery and purchase more accessible across the country. Combined with the growing preference for safer, ingredient-transparent products, Vietnam’s organic beauty segment is poised for sustained expansion—making it a promising investment landscape for forward-thinking cosmetic brands.

Read Related: FDI Company in Vietnam: Setting Up an E-Commerce Business

4. Key Market Challenges for Cosmetics Companies in Vietnam

Despite its rapid growth, Vietnam’s cosmetics market presents several challenges that businesses must navigate strategically. One of the primary issues is the market’s youth and volatility. A major demand driver is the Korean wave (Hallyu), which heavily influences consumer preferences. However, trends originating from Korea shift rapidly, often driven by celebrity endorsements, making local demand highly reactive and unpredictable. As a result, product popularity can fluctuate dramatically, posing risks for brands that rely on trend-based appeal.

The market is also highly price-sensitive, particularly among its largest demographic—young consumers with limited disposable income. These consumers often gravitate toward affordable, mass-market products over premium offerings. To remain competitive, brands must align their pricing strategies with local purchasing power without compromising perceived value.

Additionally, western brands face perception challenges. Many Vietnamese consumers believe Asian-made products are more suitable for their skin type due to shared climatic and biological characteristics. However, this bias can be overcome if foreign brands demonstrate a clear commitment to product quality, safe ingredients, and tailored formulations, which are increasingly prioritized by discerning Vietnamese buyers.

Another significant barrier is Vietnam’s high import tariffs on cosmetics, which add layers of cost for foreign brands and reduce product competitiveness. In 2024, imported beauty and skincare items face tariffs ranging from 10% to 33%, depending on the product type. For example, anti-acne treatments and face creams are taxed between 10% and 15%. These charges, alongside VAT, import duties, and other fees—not only raise prices for consumers but also discourage foreign investment and limit product diversity in the market.

To succeed in Vietnam’s evolving beauty landscape, brands must be agile in responding to trends, price-conscious, and deeply committed to product integrity while navigating a regulatory environment that remains cost-intensive for imports.

Read Related: Key Insights on Import and Export Industries in Vietnam

5. Cosmetic Registration Process in Vietnam

To register a cosmetic product in Vietnam, the following documents must be included in the application :

• Proclamation report of cosmetics
• Company registration certificate
• Power of attorney from the product owner
• Free sales certificate

Additionally, a product registration file must contain four key components:

• Product descriptions and administrative documents summary
• Product quality details
• Material quality information
• Safety and efficiency evaluations

5.1. Cosmetics Safety

Manufacturers and product owners are required to ensure the safety of their cosmetic products in line with the safety guidelines and standards set by the Association of Southeast Asian Nations (ASEAN). Annex 06-MP specifies limitations on heavy metals and microbial content, while the ASEAN Cosmetic Treaty provides additional safety criteria. These rigorous regulations are designed to prevent health risks, given that cosmetics are applied directly to the human body. Consequently, all cosmetics, whether produced domestically or imported, must complete a proclamation procedure before they can be marketed in Vietnam.

5.2. Cosmetics Labeling

5.3. Cosmetics Claims

In Vietnam, it is essential that every cosmetic product, whether manufactured locally or imported, has substantiated claims before it can be marketed. Claims must be supported by evidence and reports, especially for medicinal or therapeutic benefits, which require individual assessment by national authorities.

Prohibited claims include:

• Elimination of scars and reversing aging (for skin products)
• Reversal of hair loss and permanent dandruff removal (for hair products)
• Prevention of sweating (for deodorants)

5.4. Cosmetics Advertising

Cosmetic advertisements in Vietnam, whether on radio, television, the internet, newspapers, magazines, posters, or events, must comply with Vietnamese law and be approved before public dissemination. The content must be accurate, non-misleading, and reflective of the product’s effectiveness, safety, and quality per the ASEAN Cosmetic Directive.

To obtain approval for cosmetic advertising, the following documents are required:

• Completed advertisement application
• Copy of the cosmetic product registration with the owner’s or organization’s seal
• Copy of the enterprise registration certificate with the seal
• Authorization letter from the product owner for the advertisement registrant
• Advertisement scenarios detailing music, pictures, and content
• Substantive materials if the advertised properties and utilities differ from those in the product proclamation report

5.5. Timeframe and Fees

The state charge for cosmetic product registration in Vietnam is VND 500,000 (approximately US$20) per item, with each product requiring separate registration. The registration process takes 15-30 working days from the application submission date, and the registration is valid for five years.

Register Your Cosmetics in Vietnam with Assistance from InCorp Vietnam

InCorp Vietnam has a track record of successfully assisting numerous clients in entering the Indonesian market through a comprehensive range of business solutions. Expanding its services to Vietnam, InCorp Vietnam is equipped with a team of legal specialists and professional consultants ready to help you navigate the cosmetic product registration process. Additionally, we offer support for clients aiming to establish a cosmetic business in Vietnam, from company formation to compliance and market entry strategies. Partner with us to leverage our expertise and ensure your success in the thriving Vietnamese cosmetics market.

By understanding and adhering to these detailed processes and regulations, foreign investors and cosmetic companies can efficiently and safely enter the burgeoning Vietnamese market, tapping into its significant potential and growing consumer base.