Vietnam’s counterfeit surge sparks stricter cosmetic controls as beauty grows

Authorities in Ho Chi Minh City, Vietnam, have ordered an urgent tightening of oversight on cosmetics. The crackdown comes as the country’s beauty industry expands, and rising cases of counterfeit and unsafe beauty products pose a growing threat to public health. 

The city’s People’s Committee announced the directive during a meeting focused on the country’s socio-economic performance. Officials at the event highlighted the growing counterfeiting risks linked to the boom in beauty e-commerce and social media sales of cosmetics.

At the end of last month, weeks before the meeting, a multi-province investigation dismantled a large-scale cosmetics distribution ring that sold counterfeit Chinese-made cosmetics through Facebook and e-commerce platform Shopee. 

Vietnamese police seized approximately 25 metric tonnes of products during the emergency searches at residences and storage facilities in Hanoi and Ninh Binh. The officers confirmed that the goods had no invoices or legal documentation.

According to Lien T. To, a Vietnam-based expert with the Environment and Social Development Organization (ESDO), Vietnam’s current regulatory model is primarily focused on notifications of transgressions rather than pre-market authorization. 

“This model places substantial reliance on post-market inspection capacity, which creates enforcement pressure when product volumes and distribution channels expand faster than inspection and laboratory testing capacity,” she tells Personal Care Insights.

“In that sense, regulators are not absent — rather, they are operating within a system that was designed for a smaller and more formalized market environment.”

As part of the country’s newly announced measures to tighten cosmetic rules, the Department of Health and the Department of Culture and Sports will lead surveillance initiatives online and offline.

Counterfeit cosmetics were sold through Facebook and Shopee at unusually low prices to attract buyers.The Department of Industry and Trade will work directly with e-commerce platforms to review product listings and remove vendors who sell illegal or unsafe cosmetics more swiftly.

However, as the initiatives remain post-market focused, regional expert To underscores the importance of digital traceability systems, inter-agency data sharing, and risk-based inspection models to ensure that oversight keeps pace with market expansion.

Beauty boom

The crackdown on cosmetic regulations comes as Vietnam’s beauty market is seeing rapid growth, driven largely by online retail. According to local reporting, beauty products generated the highest gross merchandise value across e-commerce sites Shopee, TikTok Shop, Lazada, and Tiki over the past year.

Vietnamese consumers spent nearly VNĐ74.5 trillion (US$2.91 billion) on over 560 million beauty products through the online platforms in 2025. The figure marks an annual increase of nearly 30% in value and over 6% in volume.

Prominent beauty industry players are also witnessing a growing regional appetite for cosmetics. L’Oréal reported in its 2025 Q3 financial report that the SAPMENA–SSA region (South Asia Pacific, Middle East, North Africa, Sub-Saharan Africa) remained its fastest-growing region. It delivered €3.07 billion (US$3.56 billion) in sales, up 11%, with Vietnam one of its top markets.

Growth outpacing safety

Vietnamese authorities note that the surge in cosmetic sales has coincided with a wave of large-scale counterfeiting violations. The January investigation into the cosmetics counterfeiting ring revealed that suspects sourced the fake goods through contacts near the Chinese border in the Quang Ninh Province.

The suspects marketed the products at unusually low prices on Facebook, labeling them as “hand-carried goods,” “domestic products,” or “company clearance stock” to attract price-sensitive consumers.

The group used electronic anti-counterfeit stamps and false shipping addresses to build consumer trust and conceal warehouse locations.

Ho Chi Minh City has ordered stricter oversight of cosmetic production, sales, and advertising.“Rapid import growth through informal channels and online markets increases the likelihood of hazardous substances, such as mercury, corticosteroids, and hydroquinone, entering the market undetected,” Dr. Shahriar Hossain, secretary general of ESDO and executive VP of the World Alliance for Mercury-Free Dentistry, tells Personal Care Insights.

Hossain explains that regulators and the industry must prioritize risk-based post-market surveillance, expanded laboratory testing, and digital product traceability. Moreover, cross-border coordination and targeted consumer awareness campaigns are equally important to “protect consumers while supporting healthy market growth.”

“These measures are essential to safeguard public health while allowing compliant businesses to operate safely,” he says.

Vietnam’s new measures will see the Department of Health collaborating with local authorities to monitor manufacturing facilities and retailers. The inspections will focus on those players suspected of regulatory violations or selling unverified products online.

Meanwhile, the Department of Culture and Sports will strengthen scrutiny of digital advertising and monitor cosmetics promotions on online platforms. The department aims to detect misleading claims and non-compliant marketing that may deceive consumers earlier.

The Department of Industry and Trade and market surveillance forces will double down on their checks to detect cosmetics of unknown origin, counterfeit goods, and substandard products, focusing on both physical and digital markets.

“Vietnam remains a high-growth market with strong consumer demand. However, the compliance environment is becoming more enforcement-driven and data-informed,” To says.

“The long-term trajectory [of these enforcement actions] is likely to involve greater digital integration, stronger inter-agency coordination, and more visible enforcement activity — which, if implemented consistently, will enhance consumer protection while preserving market dynamism.”