The cosmetic market has great potential
According to Statista data, the scale of the Vietnamese cosmetics market in 2024 is estimated to reach more than 2.4 billion USD, an increase of 3.4% compared to 2023. It is forecasted that by 2027, this market will reach about 2.7 billion USD, equivalent to a compound annual growth rate (CAGR) of more than 3.3% in the 2023-2027 period. These figures show the great appeal and potential of the cosmetic industry in the context of increasing beauty demand from people.
A notable feature of the Vietnamese cosmetics market is the absolute dominance of imported products. Currently, more than 90% of cosmetics circulating on the market are imported goods, with import value increasing steadily over the years.
Along with that, the distribution channel structure is clearly shifting. About 20% of cosmetics are consumed through online channels, mainly through e-commerce platforms such as Shopee, Lazada and Tiki; while about 80% are still sold through traditional offline channels. However, the trend of online cosmetic shopping is expected to continue to increase sharply in the coming time thanks to the explosion of e-commerce and social networks.
According to Dr. Ta Manh Hung - Deputy Director of the Department of Drug Administration (Ministry of Health), data from the World Health Organization (WHO) shows that fake cosmetics on the internet are a major challenge for pharmaceutical and cosmetic management in many countries, including Vietnam.
In addition to high profits that make cosmetics the target of counterfeiting, the flourishing situation of homemade, handmade, and homemade cosmetics also makes it difficult to control. The psychology of a part of consumers being attracted to cheap goods supports the consumption of cosmetics of unknown origin, which poses many potential health risks.
The rapid expansion of cosmetic production, trading, circulation and use also poses many challenges for state management. In reality, the situation of cosmetics not ensuring quality, counterfeit goods, goods of unknown origin and false advertising tends to increase, affecting the rights and health of consumers.
Strengthening management and inspection
Not only in Vietnam, the problem of fake cosmetics is also a difficult problem on a global scale. According to EUIPO and OECD reports, in 2024, the scale of the world cosmetics market is estimated to reach about 600 billion USD, of which counterfeit goods account for 4-10% depending on the region. In the ASEAN region, many countries such as Indonesia and Thailand have also discovered cases related to the business of counterfeit and smuggled cosmetics.
In this situation, the work of ensuring quality and fighting against the production and sale of counterfeit cosmetics has always received the attention and close direction of the Government, as well as relevant ministries and branches such as the Ministry of Health, the Ministry of Industry and Trade and the People's Committees of provinces and cities. However, in recent times, the authorities have discovered many cases related to the business of counterfeit cosmetics, showing the complexity and sophistication of this type of violation.
The Drug Administration of Vietnam also requires strengthening inspection of drug and cosmetic business activities on e-commerce platforms and social networks. In case of detecting violations, it is necessary to promptly handle and report to relevant ministries and branches to coordinate in resolving them; resolutely handle them strictly, without forbidden areas, without exceptions, and transfer them to the investigation agency when there are signs of crime.
During the implementation process, localities need to proactively coordinate and promptly report difficulties and problems to the Department of Drug Administration to ensure effective pharmaceutical and cosmetic management, health protection and consumer rights.
In addition to perfecting the legal framework, it is necessary to strengthen inter-sectoral coordination, promote market inspection and control and raise consumer awareness. Only then can the cosmetic market develop sustainably, ensuring harmony between economic growth and social safety.
To limit counterfeit cosmetics, the Drug Administration has proposed strengthening post-inspections, tightening sanctions, transparency in traceability; at the same time, supporting the development of domestically produced cosmetics, raising consumer awareness and promoting inter-sectoral coordination and international cooperation in cosmetic management.
