India eyes up Vietnam's markets for cosmetic chemical exports

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India eyes up Vietnam's markets for cosmetic chemical exports

Related tags: Investment, Economic growth

India is the latest country on the AP region to consider Vietnam an ideal location for its exported cosmetic dyes and chemicals thanks to the Southeast Asian country's upgrade in skillful workers and an average GDP growth rate of 5-6 per cent annually.

Vietnam has been attracting a lot of attention of late thanks to its efforts to create stable conditions which includes lining up its' legal frameworks with international best practices, updating technology and certifying materials and equipment.

According to the Indian Ministry of Commerce and Industry's statistics; India’s exports of these products to Vietnam have reached US$114.02 million in the last two years, an increase of 5.85 per cent compared to the preceding period.

Regional analysts report that various international companies have invested in training courses to improve the standard and efficiency of Vietnam’s workforce.

The minister of planning and investment, Bui Quang Vinh told VietNamNet that routine inspections are being put in place to identify potential or actual causes for detention.

Vinh also revealed that responsible organisations or individuals will be called upon to make necessary corrections or take precautions against future incidents.

The publication went on to report that a decree on public-private partnership (PPP) investment model is to be shortly announced, providing favourable conditions for the private sector to engage more deeply in the country’s growth process.

"Currently, the Government is working to complete a list of projects calling for investment in PPP form, to be made public soon,"​ he said.

Thailand has also been investing in Vietnam

Thai cosmetic businesses have also begun to see the value of investing in Vietnam.

A recent fair, ‘Vinexad’ attracted 100 companies from Thai food, cosmetics, garment, and electronic industries looking to partner with Vietnamese brands to boost future bilateral trade.

The ministry has also stated that it will continue to assist and strengthen its' support to businesses, especially in building and promoting their trademarks with a focus on private firms.

Domestic brands are struggling to compete though...

Currently, 90 per cent of Vietnam's cosmetics sector is comprised of foreign companies, due to widespread distribution channels.

Although having established many cosmetics brand names of its' own, the country's beauty market has been overshadowed by multinational brands due to a lack of innovation and promotional strategies.

The quality of Vietnamese-made cosmetics are not far from that of foreign-made ones but rather that manufacturers are not investing in strategies to develop their products as well as advertising campaigns that local consumers can relate to.

Related topics: Market Trends

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