Kimberly-Clark is moving to significantly expand its presence in Vietnam with a major capacity upgrade at its production site in Binh Duong Province. 

 

The company has secured around 1.2 hectares of additional land adjacent to its existing factory in the Vietnam–Singapore Industrial Park (VSIP), about an hour from central Ho Chi Minh City, paving the way for a substantial scale-up of operations. Once the project is completed, the site’s production capacity is expected to rise by roughly 40%, reinforcing its role as one of Kimberly-Clark’s most important manufacturing bases in Southeast Asia. 

 

The Binh Duong plant already supplies both Vietnam’s fast-growing hygiene market and a wide network of export destinations. Around half of its current output is shipped to approximately 18 markets across the region, making the facility a central hub in Kimberly-Clark’s Asian supply chain. With the added land and new investment, the company aims to increase volumes and flexibility, supporting a broader product mix tailored to differing consumer needs and price points across neighboring countries. 

 

At the heart of the expansion is Kimberly-Clark’s strategy to strengthen its baby, feminine and adult incontinence care businesses. The Binh Duong site is a key production base for Huggies diapers and other personal care products, which are positioned to serve both domestic shoppers and export markets. 

 

Vietnam is one of the company’s most dynamic markets in ASEAN, although Huggies continues to face stiff competition in the nappy segment from established rivals such as Unicharm’s Bobby brand. By boosting capacity and leveraging Vietnam’s manufacturing cost advantages and improving logistics infrastructure, Kimberly-Clark aims to sharpen its competitiveness across the wider region. 

 

The expansion also reflects a broader demographic and strategic context. Even as global birth rates soften, Southeast Asia remains an important growth zone, with large cohorts of young families and, at the same time, ageing populations that are driving demand for adult incontinence products. 

 

Positioning Vietnam as a regional production hub allows Kimberly-Clark to respond more quickly to shifts in demand, adapt product formats and packaging for local preferences, and support innovation in categories such as baby diapers and feminine hygiene. 

 

The latest investment underlines the company’s long-term commitment to Vietnam, where it has steadily built up its footprint and now sees the country as a strategic platform for sustainable growth across Asia.