P&G invests $100m in Gillette razor plant
|Procter & Gamble (P&G) Vietnam yesterday (March 26) announced an investment of US$100 million to build a Gillette razor plant in Vietnam Singapore Industrial Park II, in Ben Cat District in Binh Duong Province, in a ceremony to celebrate its 20th anniversary in the country.
P&G was among the first US companies to enter Vietnam after the Vietnam – US normalization of relations. It has become one of the top fast-moving consumer goods (FMCG) companies in the country.
"Through this new investment, P&G re-affirms our commitment to growing business here over the long term and contributing to the socio-economic development of Vietnam," said Emre Olcer, general manager of P&G Vietnam, at the ceremony.
The new plant will employ state-of-the-art shaving manufacturing technology, strengthening P&G's reputation in spearheading innovation in the region. It will create 300 additional jobs for local residents.
Vietnamese technicians and engineers, who will manage and operate the production lines, have been sent to Poland for technology training, a testimony to P&G's other commitment to local talent development.
The new investment brings the company's total investment in Vietnam to US$360 million.
During the ceremony, the company also kicked off work for a project on a land lot of more than eight hectares. It will be the third production facility of the company in Vietnam when it becomes operational in 12 months.
Hatsunori Kiriyama, P&G Asia president said: "Asia is critical to the future of P&G, and fast-growing markets like Vietnam play an even more important role in the region as they are sources for new consumers, new innovation and new opportunities.
"We are counting on this plant for a big supply for domestic consumption and other markets," Hatsunori Kiriyama told Vietnam News, citing Japan, Indonesia and other ASEAN countries.
"I think Vietnam has the potential to be the top five countries in Asia for sure, if you continue growth like before," he said.
"We have around 70 – 80 global brands and Vietnam has now 14, so why not?" he said in reply to a question from Vietnam News on the company's further investment in the country.
"But we also have to look at business, because just bringing products and brands doesn't mean anything. We have to bring the capabilities to improve the lives of consumers. If the Government can really facilitate, I am confident we can invest more and create more jobs."
"Compared with 20 years ago, when we started business here, there have been many improvements in terms of the Government's help. The investment environment is one of the most competitive in ASEAN, but I think the country should not relax and it should further support foreign investors, and improve regulations and tax incentives," he said.
P&G Vietnam already runs now one plant for hair care and laundry products and another for baby care in Binh Duong, making items under 14 brands including Ariel, Downy, Tide, Pampers, Pantene and Head & Shoulders.
Commenting on this historic occasion, Hatsunori Kiriyama said: "This is truly a moment of great pride as we celebrate 20 years of realising our company's mission of touching and improving the lives of Vietnamese consumers for now and for future generations."
During its 20 operational years it has won recognition merits from the Government of Vietnam and local authorities, including a Third Labour Medal from the president.
Tran Van Nam, chairman of Binh Duong's People's Committee, said he appreciated the contribution of P&G Vietnam to his province's economy, saying it was among the top 10 FDI companies contributing to the State budget of Binh Duong.
"We are always willing to support foreign investors, including P&G, to help them have the most effective operation," said Nam.
Binh Duong has been one of the most attractive destinations for foreign investment. In the first two months of this year, it drew more than US$180 million in FDI.
The province has attracted more than 2,400 projects worth a total registered capital of around US$21 billion from 39 countries and territories. It is expected to have US$1 billion in FDI this year.