Vietnam beats out competitors in a boon to local workers.
The $100 million Gillette production factory in Binh Duong is part of Procter & Gamble's (P&G) long term investment plan in Vietnam's market.
The new factory has an area of 8ha and will be used for supplying shaving products in Vietnam and across Asia.
Mr. Elmere Olcer, General Director of P&G Vietnam, said that the parent company has been considering building a Gillette razor factory in a variety of developing countries in the region. Vietnam's advantages are its high speed of economic growth, young population and gradually improving incomes for employees, according to Mr. Olcer.
“Asia plays an important role in the future of P&G. Fast growing markets such as Vietnam are more prominent in the region due to potential consumers, many improvements and new opportunities," said Mr. Hatsunori Kiriyama, Chairman of P&G Asia. With investment tripled in the past years, P&G's brands are growing rapidly and the average growth rate of the business has reached double digits for years.
“At the new plant, we will use advanced production technology to create excellent products. The razors will be slimmer than surgeon's scalpels and the radius of the blade will be smaller than brain cells,” said Mr Max Menozzi, P&G Asia's Vice President of Shaver products.
It will be one of three Gillette factories operated by P&G in Asia. It is expected to be completed in the next 12 months and create 300 new jobs for local workers. The project is part of a long-term plan to build solid infrastructure for supplying its products in Vietnam and Asia.
As one of the first US businesses to invest in Vietnam after the two countries normalized relations, in its 20 years of operating, P&G Vietnam has become one of the leading brands in fast-moving consumer goods (FMCG). Many products have become familiar with Vietnamese consumers like Ariel, Pampers, Downy, Pantene, Tide, Head & Shoulders and Gillette. P&G was voted as being the most attractive FMCG employer in Asia and in the top three best places to work in Vietnam in 2013.