Kimberly-Clark taps Vietnam to drive Southeast Asian growth
Vietnam is emerging as a key export base for a wide range of international markets, with remarkable growth recorded from this hub.
VIETNAM – Kimberly-Clark has expanded its operations in Vietnam, positioning the country as a strategic manufacturing center for Southeast Asia as part of its broader regional growth strategy.
This year, the company acquired an additional 1.2 hectares of land adjacent to its existing factory, located about an hour from Ho Chi Minh City, allowing for a 40% increase in production capacity.
This expansion is aimed at boosting export output, with half of the products manufactured in Vietnam currently being shipped to 18 international markets.
Nitish Gupta, managing director of Kimberly-Clark Southeast Asia, emphasized Vietnam’s critical role not only in manufacturing but also in innovation for the company.
Despite continued investment, Kimberly-Clark still trails behind Unicharm’s Bobby, which held 25% of Vietnam’s diaper market in 2023, compared to Huggies’ 22% and Pampers’ 12%.
Analyst Haikal Sufiyan noted that Unicharm’s strong market position is due to its broad product range and features tailored to Vietnamese parents, such as easy-to-change pants nappies.
With Vietnam’s fertility rate falling to a historic low of 1.91 children per woman in 2024, demand for diapers is shifting to include adult incontinence products.
Kimberly-Clark launched two new adult care products last year to narrow Unicharm’s competitive edge and address changing consumer needs.
The ageing population trend is also reshaping the hygiene market, with Singapore, Thailand, and Vietnam seeing a rising share of people aged 65 and above.
Analysts recommend larger pack sizes at competitive prices to meet evolving consumer demands.
To stay competitive, Kimberly-Clark is partnering with influential parenting communities and strengthening its e-commerce presence.
These developments highlight Vietnam’s growing importance as a manufacturing and innovation center for the global hygiene and personal care industry.
Meanwhile, Kimberly-Clark recently announced a landmark agreement to acquire all outstanding shares of Kenvue Inc. in a major cash and stock deal valued at approximately USD 48.7 billion, based on Kimberly-Clark’s share price on October 31, 2025.
The acquisition price equates to an enterprise value multiple of about 14.3 times Kenvue’s last twelve months (LTM) adjusted EBITDA, or around 8.8 times when factoring in expected run-rate synergies of USD 2.1 billion after reinvestment.
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