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Growing consumer preference and awareness for natural products and ingredients continue to affect purchasing patterns and market trends in the cosmetics industry, and it seems that the big cosmetics companies will not be left out.

On June 18, 2020, cosmetics giant L’Oréal signed an agreement to acquire the heritage natural skincare brand Thayers Natural Remedies. Headquartered in Connecticut, with more than 170 years of heritage, Thayers Natural Remedies is one of the most well-known natural cosmetics brands in the USA. The brand is best known for its top-selling natural toner containing several different herbal ingredients such as Witch Hazel and Aloe Vera. Thayers has experienced amazing sales in the past few years due to its portfolio of natural products, and its multi-channel distribution strategy which sees its products on the shelves of natural grocery stores, mass beauty retails, drugstores and e-commerce platforms.

In a statement to the press, L’Oréal’s President of Consumer Products mentioned “We are thrilled to welcome Thayers Natural Remedies, a true “love brand” at the intersection of two major skincare trends: nature and health.”

Global consumer preferences towards cosmetics are rapidly changing, and strategic acquisitions are an important tool if your company is planning to stay ahead in the increasingly competitive cosmetics market. At CPC, we have supported multiple small, medium, and large-sized companies to identify strategic licensing and M&A targets to ensure long-lasting business success in multiple segments and international markets. Click here to learn more.

As one of the few winners against the pandemic with modest financial resources, is the Vietnamese pharma market ready for international investments and colaborations?

The Covid-19 outbreaks and Vietnam’s remarkable performance in containing its spread have proven that health is, and will absolutely continue to be, a priority for most Vietnamese and as well as for the government. 

The societal shift that is creating opportunities for Vietnam’s Pharma and OTC  industry

Like most countries identified as emerging markets, Vietnam is undergoing drastic changes in terms of demographic, social, and economic aspects. Most recently, there are some significant shifts that make Vietnam more and more competent in becoming a top-of-the-list for international companies that are looking to expand their business in emerging markets. 

 

The first and most important factor in this equation is the fast-growing middle class in the country. Vietnam currently has the fastest-growing middle-class population in South-East Asia. This has significantly boosted the demand for high-quality and specialized healthcare services.

 

Subsequently, due to higher demand and affordability, the health insurance and hospital systems are expanding. Vietnam has become a coverage ratio leader within Asia and it has set a goal of covering 95% of the population with Universal Health Service by 2025. The Hospital network is also fairly extensive and the government continues to finance the construction of new hospitals. At the same time, it is also increasingly looking at investment from the private sector and international firms. 

 

As a result, the country recently signed the European Union Vietnam Free Trade Agreement (EUVFTA). The agreement will remove tariffs for pharmaceutical products from the EU and allow foreign companies to import and sell pharmaceuticals to Vietnamese distributors and wholesalers. 

 

Furthermore, there was an Amended Law on Enterprise and Law on Investment, effective January 2021, that incentivizes investment in five key sectors including healthcare. Projects in these sectors will benefit from preferred enterprise income tax, exemption or reduction of land lease fee, and credit support.

Finally, investors should also pay attention to the development of Digital Healthcare in Vietnam. Recently, the Ministry of Health approved a five-year project on remote medical examination and treatment. Apps and medical services will be developed to manage files and knowledge systems, as well as helping patients find medical information, make their appointments, and consult doctors. These measures will accelerate the digitalization across Vietnam’s hospital network. 

Overall, investors can be optimistic about the future of Vietnam’s Healthcare Industry. The societal changes, as well as the government’s regulatory activities in favor of the development of the sector, have made Vietnam one of the most attractive go-to emerging markets for companies and individual investors. 

Ho-Chi-Minh City