By Martina Kao    Photo：CANVA

In recent years, Thailand has emerged as one of Asia’s leading cosmetic manufacturing hubs. Many international giants have set up factories in the country, while local brands such as Mistine and Srichand have already expanded their reach across ASEAN, and even to India and the Middle East. Thailand’s advantages go beyond its abundant natural herbal ingredients and cost-efficient labor. The country has also signed multiple Free Trade Agreements (FTAs), enabling exporters to benefit from reduced—or in many cases zero—tariffs. For businesses targeting markets like Vietnam, Indonesia, or the Philippines, Thailand’s strategic location offers an additional edge.

Of course, challenges remain. While Thai brands enjoy recognition within the region, breaking into Europe and the U.S. requires stronger global credibility. Regulatory requirements also differ across markets: the EU enforces strict EU Cosmetic Regulations, while Middle Eastern countries demand Halal certification. Pure OEM/ODM strategies often face margin pressure, so differentiation is essential—whether through unique product stories or highlighting Thai herbal, spa, and essential oil traditions.

With the support of FTAs, Thai-made cosmetics hold a stronger competitive position. As long as products undergo substantial transformation in Thailand and secure a Certificate of Origin (C/O), they can be exported to ASEAN or other partner countries under preferential or zero tariffs. This is one reason why more international brands are choosing to manufacture in Thailand under OEM or ODM models, before re-exporting to markets like Vietnam, Indonesia, and Malaysia. ODM factories even develop herbal-based formulas in-house, providing turnkey solutions for brand owners looking to tap into high-demand Halal markets such as the Middle East.

Key Considerations When Using Thailand as an Export Platform

1. Regulations and Certifications

• On the Thai side (exporting country):
  Products must be registered with the Thai FDA to ensure ingredient compliance and safety. Exporters also need to apply for a Certificate of Origin (C/O) and complete Form D in order to qualify for ASEAN FTA tariff preferences.
• On the importing side (ASEAN countries):
  • Vietnam: Importers must complete a Cosmetic Product Notification (CPN) and register with the Drug Administration of Vietnam (DAV).
  • Indonesia: Products must be registered with BPOM (Badan Pengawas Obat dan Makanan, the National Agency of Drug and Food Control), and must comply with Halal certification requirements, which will become mandatory in 2026.
  • Malaysia: Products must meet requirements set by the NPRA (National Pharmaceutical Regulatory Agency).
    Note: Halal certification in Malaysia falls under JAKIM (Department of Islamic Development Malaysia). While not legally mandatory, it is highly influential in market acceptance.
  • Philippines: All cosmetics must submit a Certificate of Product Notification (CPN) and receive approval from the FDA Philippines before import and sale.

Each ASEAN market has distinct rules on ingredients, labeling languages, testing, and certifications, which must be addressed individually.

2. Tariffs and FTAs

• If products meet ASEAN Rules of Origin (ROO), exporters can apply for a Form D Certificate of Origin, which allows goods to enter under zero or preferential tariffs.
• If significant portions of raw materials are sourced from outside ASEAN, exporters must ensure that processing in Thailand meets “substantial transformation” requirements; otherwise, FTA benefits will not apply.

3. Packaging and Labeling

• Language: Local language labeling is required (e.g., Vietnamese, Indonesian, Malay).
• Mandatory information: Product name, ingredients, manufacturer/importer details, batch number, and expiration date.
• Sensitive ingredients: Rules for preservatives, whitening agents, and colorants vary by country.

The benefits grow even stronger when products are processed within Free Trade Zones (FTZs). Raw materials and packaging can be imported tax-free, and finished products re-exported without incurring duties. FTZs also allow for value-added activities such as packaging, relabeling, or blending. As long as substantial transformation occurs, exporters can secure Thai C/O documentation and enjoy FTA tariff preferences.

From a logistics perspective, FTZs can serve as ASEAN distribution hubs. Companies can consolidate raw material imports, carry out processing or repackaging inside the zone, and then ship directly to Vietnam, Indonesia, or Malaysia under tariff advantages. This reduces tax and administrative costs, minimizes repetitive customs declarations, and benefits from electronic customs ledger systems for higher efficiency. Even better, businesses can adapt packaging before shipment—such as adding certified Halal labels or localized translations—ensuring compliance across multiple markets with greater flexibility.

In today’s highly competitive beauty market, Thailand’s strong industrial base, tariff advantages through FTAs, and the operational flexibility of FTZs are positioning the country as a strategic hub for ASEAN cosmetics exports. For businesses, this means not only lower entry costs into regional markets but also the ability to strengthen brand competitiveness under the “Made in Thailand” origin. Whether capturing short-term demand in ASEAN or building long-term global distribution networks, Thailand offers one of the most effective launchpads for beauty brands expanding across Southeast Asia.

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