Our Advantages
Full-chain advantages from RCEP tariff benefits to CGMP production standards, delivering measurable cost savings and superior quality for your brand
Why Vietnam
RCEP trade agreement + demographic dividend + geographic proximity to China, creating unique competitive advantages
Under the Regional Comprehensive Economic Partnership (RCEP) framework, the majority of cosmetics originating in ASEAN member states enjoy duty-free or significantly reduced tariff treatment when exported to China. This represents a structural cost advantage over non-RCEP origin manufacturing.
Vietnam's labor costs in manufacturing are approximately 40%-60% lower than China's coastal manufacturing hubs. For labor-intensive cosmetics production (filling, packaging, quality inspection), this translates directly to lower unit costs.
Vietnam shares a land border with China, enabling land, sea, and air multi-modal logistics. Shipping time to southern China ports is only 3-5 days, significantly faster than trans-oceanic alternatives.
Estimated total cost savings of 25%+ through Vietnam contract manufacturing — combining tariff exemption under RCEP, labor cost advantage, and reduced logistics time for China-bound exports.
Tariff Comparison
Choosing Vietnam for contract manufacturing helps brands significantly reduce trade costs
| Origin | Destination | Tariff Rate | Agreement | Notes |
|---|---|---|---|---|
| China | USA | 25% (Sec 301) | N/A | Section 301 tariff applies |
| Vietnam | USA | 0%-6.5% | WTO MFN | WTO standard tariff |
| China | EU | 0%-6.5% | WTO MFN | Standard tariff |
| Vietnam | EU | 0% (most) | EVFTA | EU-Vietnam FTA duty-free |
| China | China (domestic) | N/A | N/A | Domestic production |
| Vietnam | China | 0%-5% | RCEP / ACFTA | RCEP duty-free or minimal tariff |
Quality Assurance
Stringent quality systems ensure every batch meets the highest international standards
In addition: factory holds a valid Business Registration Certificate (Vietnam Ministry of Planning and Investment) for cosmetics manufacturing and export. Additional certifications are being pursued for expanded market access.
Supply Chain
From South Korea, Japan, France, the UK, and Taiwan — ingredients sourced from the world's top beauty industry leaders
Whitening actives
Fermented extracts
Sheet mask fabrics
Amino acid
surfactants
Emulsifiers
Film formers
Natural extracts
Sunscreen agents
Botanical oils
Specialty
performance
ingredients
Quality silicone
precursor
materials
Cost Advantage
From labor to scale, every link reduces costs for your brand
40%-60% lower than China's coastal manufacturing hubs, directly reducing per-unit production costs
Continuous factory upgrades: from 2,000m2 (2014) to 20,000m2 (2024), reducing marginal cost per unit
No intermediary margins, direct from factory to brand — transparent pricing throughout the supply chain
Service Advantage
Zero-communication-barrier cross-border manufacturing services
Dedicated Chinese-language business team — from initial inquiry through delivery, all communication in Chinese, with zero language barrier
From formula R&D to sampling, production, and logistics — every stage is tracked, with regular progress updates to clients
Environmental compliance, political stability (Vietnam), and raw material supply-chain resilience for long-term production stability
Advantage Summary
Ready to Leverage These Advantages?
Contact us for a tailored analysis of how much you can save by manufacturing in Vietnam.
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