Korean cosmetics and food enterprises look for Vietnamese match
Korean cosmetics and food enterprises look for Vietnamese match
Korean cosmetic and food manufacturers see great potential in expanding their distribution channels in Vietnam by making direct contact with Vietnamese distributors, retailers, and manufacturers to benefit from the Vietnam-Korea Free Trade Agreement (VKFTA).
In the framework of the trading event organised by the Vietnam Chamber of Commerce and Industry (VCCI), in collaboration with Korea Complex Research and Development Institute (Dae-gu Technopark) on May 10, seven of the eight visiting Korean enterprises operate in manufacturing cosmetics and food.
“It is the second time I have come to Vietnam to find material suppliers. On my first trip, I found a suitable Vietnamese partner in Ho Chi Minh City. I visited their facility and attended working sessions to discuss co-operation methods. The two parties are completing the remaining procedures to officially sign a contract and expect to make a trade deal worth between $2 and $3 million per year,” said Kim Jong Woo, CEO of SLC Co., Ltd., a cosmetics manufacturing and trading company.
Kim Jong Woo said that the main criteria in choose suppliers were infrastructure and machinery. Notably, Vietnamese enterprises have to own factories equipped with modern infrastructure and machinery, meeting strict quality requirements.
“In my opinion, Vietnam is a potential market for Korean enterprises, especially cosmetics manufacturers due to the increasing demand’s for beauty care amongst Vietnamese people, while Korea is famous for its beauty industry. In addition, the VKFTA, through the provision of ample tax incentives, is an important opportunity helping Korean enterprises to penetrate the Vietnamese market,” Woo added.
According to a representative of Vision International Company, in recent times, both Thailand and Japan hastened efforts to set foot on the Vietnamese market, saturating the market with foreign products. However, SLC will differentiate itself by supplying biological products with natural origins.
Along with Korean enterprises’ expectations, Vietnamese distributors are also looking forward to distributing Korean products in the country.
Director of Van Thinh Phu Company Limited Dao Thanh Luu stated, “Having been a food importer and distributor for eight years, we find that the consumption of Korean food on the Vietnamese market is fast increasing. Korean food is a good match for the Vietnamese palate. Furthermore, due to the Korean wave’s influence, exerted by films, cuisine, music, and culture, Vietnamese people, especially the young, give priority to Korean products.”
“Korean food is expensive but it can compete with local products, even Thai and Japanese brands, due to the attractive packaging and high quality,” Luu added.
