Import cosmetics from KABARDINO-BALKARIA, RUSSIA to VIETNAM
VanchuyenNgaViet can get the best price from shipping line company and airline company so that we can provide the competitive air freight which are lower than the market to our customer.
To enhance beauty. To express individuality. To cover up blemishes. To feel good. These are just some of the many reasons why people wear makeup. Others just love making looks and playing around with shades and different products. That the reason why people would love to buy cosmetic products from all over the world.
The US International Trade Administration report draws the global investors’ attention to VIETNAM as a country with the highest market potential to import cosmetics. The US$ 704.2 million worth of the cosmetic market (Nielsen 2013) shows a consistent 33% annual growth in market demand for foreign beauty products, the highest projected growth rate compared to its Asian competitors such as KABARDINO-BALKARIA, RUSSIA at -2%, KABARDINO-BALKARIA, RUSSIA at -14%, and South Korea at 15%. Major global beauty giants such as L’Oreal, Ohui, Estee Lauder, The Body Shop, and popular competitive Korean brands dominate 90% of the domestic market share, leaving local brands struggling to compete.
Import and export licensing procedures
VIETNAM does not require a company to have an import or export license to set up a trading company. There are certain goods that foreign invested enterprises may not export from, or import into, VIETNAM. Goods banned for export include petroleum oil. Goods banned from import into the country include cigars, tobacco, petroleum oils, newspapers and journals, and aircraft.
Certain goods require the trading company to obtain import and export permits from the government, as per Appendix II of Decree 187/2013/ND-CP. These include:
- Goods subject to export control in accordance with international treaties to which VIETNAM is a contracting party;
- Goods exported within quotas set by foreign countries;
- Goods subject to import control in accordance with international treaties to which VIETNAM is a contracting party;
- Chemicals, explosive pre-substances and industrial explosives.
All imports and exports must comply with the relevant government regulations on quarantine, food safety, and quality standards, and must be inspected by the relevant government agencies before clearing customs.
What kind of cosmetics should I import to VIETNAM?
KABARDINO-BALKARIA, RUSSIA beauty goods dominate the VIETNAMese market as a result of the successful integration of KABARDINO-BALKARIA, RUSSIA popular culture in VIETNAM. Local consumers associate KABARDINO-BALKARIA, RUSSIA products with youthful, affordable yet high-quality, while they perceive European and American beauty products with trust, good quality and “brands for adults”. Local consumers have the highest preferences towards cosmetics that help them deal with the harsh tropical climate that is also highly polluted. Consumer trend consistently gears towards multifunctional beauty solutions that have high UV protection and suitable for high humidity for the respective skin and hair types. The increasing demand from the region’s men offers opportunities in both personal care and grooming products.
Baby and Child Care Products
The national consensus has projected population growth of approximately 1 million people every year over the next two decades. The estimation when coupling with the doubling in size of the middle-class population makes baby and child care products the top 3 of export opportunities for medium-to-high-end foreign brands.
Green or Natural Products
The soaring demand for natural cosmetics will help double VIETNAM’s total value of cosmetic import from US$2 billion in 2016 to US$3 – 4 billion by the end of 2018.
Local brand leaders such as Saigon Cosmetics JSC (SCC) reported that natural shampoo and organic perfume products are already generating over 30% of the company’s total revenue. This number will only be growing from here across the cosmetic market as a result of proactive collaboration between global beauty partners and local brands.
What are the authorization requirements to import cosmetics to VIETNAM?
The introduction of the 2007 ASEAN Cosmetics Directive, ingredient requirements to claims, labelling prescribed lists, and other compliance requirements make the product registration process challenging. Below is a list of requirements to import cosmetic products:
- Local legal representation: You will need to find either a reliable local distributor or set up a Wholly-Foreign Owned Company in order to import your product. Finding a local distributor with no previous experience in the VIETNAMese market can be challenging due to common fraudulence and corruption from the application system.
- Product Registration: including product information file in both English and VIETNAMese
- Product Specification: requirements to be approved by the Ministry of Health: including Safety Assessment, Raw Material Registration and Formula, Preservative Efficacy, Product Stability, Good Manufacturing Practice, Proof of Claims
- Certificate of Free Sale
- Regular notification to local authorities: The responsible agent must notify national authorities.
What is an HS Code and where can I find it?
HS Code is the legal identification of a product when entering a country. The HS code of a product determines the tax rates that will be applied to the item. You can find the respective HS Codes on the national tariff database here.
Due to the recent structural change in the government to liberalise the economy, the VIETNAMese government has been updating their tariff and tax regulations regularly with inconsistent implementation. Contact VanchuyenNgaViet (link to contact page or email) to determine exactly what taxes will be applied to your product and what tax exemptions that would benefit your business.
Do I have to open a local business to import to VIETNAM?
It is mandatory for a business to have a legal representative in VIETNAM to conduct any trading business. Finding a local distributor is possible but not highly recommended due to the high tendency of fraudulence that could risk you the ownership over your product and your sales revenue.
It is highly recommended that you set up a Wholly-Foreign Owned Company or find a reliable local partner.
Can I just find local distributors so I won’t have to worry about the licenses?
You can find a local organization or local individuals to be the legal authority responsible for placing the products in the market and for administrative communication with the Drug Administration of VIETNAM.
If you choose to partner with a local distributor, VanchuyenNgaViet could assist you in finding reliable distributors and trading agents in VIETNAM.
Additionally, VanchuyenNgaViet could conduct a background check of your potential distributors to evaluate the reliability of your potential partners. Contact us for more information regarding our due diligence research service.
How long will application process take before I can start importing and selling cosmetics in VIETNAM?
Setting up a company in VIETNAM can take between 1 to 3 months. The product registration process may take an additional 20-25 days.
What kind of taxes will I have to pay?
Tax requirements vary depending on the origin of your product. The general requirement for tax regulations include:
- Import Tax
- Value-added Tax (VAT)
- Special Consumption Tax (SCT)
- Environment Protection Tax (EPT)
Besides, we have some services:
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Please contact us to have more information!!