Introduction

Expanding into the Vietnamese cosmetic market requires compliance with local regulations, specifically registering cosmetic products with the Drug Administration of Vietnam (DAV). Businesses have two main options: establishing a company or using a Cosmetic Notification Holder service. This article analyzes the advantages, disadvantages, and key considerations to help businesses determine the best approach.

1. Establishing a Company in Vietnam

Advantages:

✅ Full Business Control – You maintain complete control over operations, distribution, and branding. ✅ Brand Recognition – A legal presence in Vietnam enhances brand credibility and trust. ✅ Direct Market Access – Easier collaboration with local distributors and retailers. ✅ Long-Term Expansion – Ideal for companies planning to invest and grow in Vietnam.

Disadvantages:

❌ High Setup Costs – Company registration, office rental, and legal fees can be expensive. ❌ Complex Legal Compliance – Requires ongoing tax filings, labor law compliance, and operational regulations. ❌ Time-Consuming Process – Registering a company and obtaining licenses can take months.

2. Using a Cosmetic Notification Holder Service

Advantages:

✅ Quick Market Entry – No need to establish a legal entity, allowing for faster product registration. ✅ Lower Investment – Avoid costs related to company setup, office space, and compliance management. ✅ Regulatory Compliance Support – Experts handle registration, ensuring adherence to Vietnamese regulations. ✅ Confidentiality & Security – Protects product formulations and supply chain information.

Disadvantages:

❌ Limited Control – The product registration is under the service provider’s name, not your company’s. ❌ Dependence on a Third Party – Requires ongoing coordination with the Notification Holder for regulatory updates and changes. ❌ Potential Branding Challenges – Some distributors may prefer working with legally registered local companies.

3. When Should You Register a Company?

• If you plan for long-term business expansion in Vietnam.
• When establishing direct partnerships with local retailers and distributors.
• If your company requires full control over branding, pricing, and distribution.
• When launching a physical presence, such as a local office or store.

4. When Should You Choose a Cosmetic Notification Holder Service?

• If you want to test the Vietnamese market before making a major investment.
• When focusing on importing and distributing cosmetics without local operations.
• If you prefer to avoid complex legal and tax procedures.
• For businesses looking for a cost-effective and hassle-free solution to enter the market quickly.

Conclusion

Choosing between establishing a company and using a Cosmetic Notification Holder service depends on your business goals, budget, and long-term strategy. If you aim for brand control and long-term expansion, setting up a company is the right choice. However, if you prioritize quick market entry and cost savings, a Cosmetic Notification Holder service is the best solution.

Get Expert Support for Your Business in Vietnam

Whether you decide to establish a company or use a Cosmetic Notification Holder service, our team can guide you through the process, ensuring smooth registration and compliance. Contact us today for a free consultation and start expanding your cosmetic business in Vietnam!

Related Articles:

• How to Start a Business in Vietnam: A Complete Guide for 2025

• Comprehensive Guide to Cosmetic Registration in Vietnam

• How to Import and Sell Cosmetics in Vietnam

• Comparison Between Establishing a Company and Using a Cosmetic Notification Holder Service in Vietnam