A customer chooses cosmetic products. Việt Nam is an attractive cosmetic market, driven by its expanding middle class and stready economic growth. — VNA/VNS Photo Mỹ Phương

The Namdong National Industrial Complex in the Republic of Korea (RoK)’s Incheon city on Tuesday announced the establishment of a 15-company market research group to support local small- and medium-sized cosmetics firms to break into Việt Nam, one of the most dynamic markets in the ASEAN region.

According to the RoK’s Ministry of SMEs and Startups, the East Asian country gained $1.7 billion from cosmetics export in the third quarter, recording the largest year-on-year growth among its top 10 export categories. Notably, SMEs now account for over 65 per cent of the nation’s total cosmetics shipments.

Market analysis reveals Việt Nam’s growing appeal, driven by its expanding middle class and steady economic growth. The growing popularity of the Korean culture has helped improve consumer trust in Korean products. Việt Nam’s cosmetics market is the fourth largest in ASEAN, following Indonesia, the Philippines and Thailand.

Statistics from the Korea International Trade Association showed that Korean cosmetics export to Việt Nam surged 122 per cent in 2023 as compared to 2019, with an average annual growth rate of 22.14 per cent. As of 2022, the RoK’s cosmetics export to Việt Nam reached $327 million. Korean cosmetics products have had an increasing market share over rivals in this market. — VNS