Thailand earned 250 billion THB (nearly $7 billion) from the cosmetics industry in 2014, with made-in-Thailand becoming increasingly popular with Vietnamese consumers, notably young users of the products.
Indeed, according to Thai Consul General to Ho Chi Minh City Malinee Harnboonsong, Thailand exported $2 billion worth of cosmetics abroad in 2013, and as the popularity of the products grows in Vietnam, 26 per cent of this was to the Southeast Asia region.
Vietnamese consumers are particularly showing a preference for natural and organic products, and with Thailand having a huge resource of materials and production chain, it seems a link with the two companies will be beneficial for both.
Ketmanee Lertkitcha, President of the Thai Cosmetics Manufactures Association, has said that the ASEAN Economic Community is scheduled to be formed by the end of this year and will create a great opportunity for the country to expand its market to Vietnam, Laos, Cambodia and Myanmar as well as on a global scale. However, economists have suggested that Vietnamese and Thai businesses come together and pool their respective resources to capitalize on the growth opportunities. While Vietnam’s cosmetics market has clearly developed over the past years, Thailand has cutting-edge technologies, innovations in cosmetics production and personal care, as well as experience in spa and massage services.
With trade between the two companies having grown 13 per cent annually over the past five years, the first five months of 2015 reported a 9.8 per cent growth. And in a bid to further cement the relationship, Thailand has held trade shows in Vietnam, such as COSMEX, which features cosmetics manufacturing and packaging materials.