Why Vietnamese Cosmetic Brands Easily Lose Everything in Foreign Markets
Many Vietnamese cosmetic brands once ambitiously set out to “bring the bell to strike abroad,” but eventually had to retreat in disappointment—losing ownership, being counterfeited, or even facing lawsuits in the very markets they aspired to conquer. Why does this situation happen? Is it because of the international market itself, or because Vietnamese enterprises do not fully understand the global rules of the game?
Misunderstanding Trademark Protection – The Biggest Trap in International Expansion
A common mistake among domestic cosmetic companies is assuming that registering a trademark in Vietnam is enough to safely bring their brand overseas. In reality, intellectual property protection follows the principle of territoriality—meaning a trademark is only protected in the country where it is registered.
Registering a Trademark in Vietnam Does Not Mean Global Protection
Businesses must understand that if they do not proactively register their brand in the target country, others may legally “snatch” it. In such cases, not only will they be unable to sell products under their own brand, but they may also face lawsuits for intellectual property infringement.
Legal Loopholes in International Expansion Strategies
When expanding abroad, especially into demanding markets such as the EU, US, or Japan, trademark protection alone is not enough. Companies must also deal with complex legal procedures related to import regulations, cosmetic product registration, safety standards, and labeling. Without a strong legal team familiar with local laws, the risks of product suspension, administrative fines, or lawsuits are significant.
The “Test-the-Market” Mentality Without Legal Preparation
Many local brands choose to “ship products abroad for trial sales,” or partner with foreign distributors without clear contracts, failing to define trademark ownership, distribution territories, and termination conditions. As a result, brands may lose control, face supply chain disruptions, or even lose ownership of their products in foreign markets.
What Should Businesses Do to Protect Their Brand Internationally?
To avoid bitter outcomes, Vietnamese cosmetic companies must prepare thoroughly from the start. Relying solely on good products or trustworthy partners is not enough—they need a clear, consistent, and strategic legal framework.
Register Trademarks in Target Markets: Identify potential countries in your expansion strategy and file trademark registrations before launching products. For multiple EU countries, consider registering with EUIPO to save time and costs. Monitor and respond to any third-party attempts to register identical or similar trademarks.
Establish Clear and Binding Commercial Contracts: When working with international distributors or agents, contracts should clearly define trademark ownership, distribution boundaries, termination conditions, and liability in case of disputes.
Ensure Compliance with International Cosmetic Standards: Prepare product dossiers tailored to each country’s requirements, ensuring labels, ingredients, formulas, and manufacturing processes meet global standards (ISO, CGMP, etc.). Keep track of regulatory updates in each target country.
Build a Long-Term Intellectual Property Strategy: Beyond trademarks, invest in protecting formulas, packaging designs, patents, or copyrights for creative campaigns. This creates stronger legal shields and adds value to the brand.
DEDICA – Your Legal Partner in Global Brand Expansion
DEDICA Law Firm has supported many Vietnamese brands, including cosmetic businesses, in building robust protection systems when going global. From trademark registration, infringement handling, to drafting international commercial contracts, DEDICA is a reliable legal partner for enterprises.
With a team of internationally experienced lawyers and experts, we not only ensure compliance but also provide proactive, flexible, and market-specific legal strategies.
International expansion is both a golden opportunity and a serious test of legal risk management. To succeed, businesses need not just quality products and strong marketing, but also a solid legal foundation.
Let DEDICA accompany you on your journey of brand globalization—with careful preparation and smart legal strategies for sustainable success.
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