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P&G starts work on $100mn Gillette plant in Vietnam

P&G starts work on $100mn Gillette plant in Vietnam

Friday, March 27, 2015, 15:49 GMT+7

U.S.-based Procter & Gamble on Thursday broke ground on a US$100 million razor plant in southern Vietnam to mark its 20th anniversary of operating in the Southeast Asian country.

The eight-hectare Gillette facility is located in the Vietnam-Singapore Industrial Park II in Binh Duong Province, and is expected to generate more than 300 jobs upon completion, according to The Saigon Times Online.

The Vietnam plant will be one of three Gillette plants in Asia, and will have most of its production exported to the Asian market.

P&G, which is the world's No. 1 household products maker according to Reuters, was one of the first U.S. companies to enter Vietnam following the diplomatic normalization between the two countries in 1995, according to the Vietnam News Agency.

The company is distributing products under 14 brands in Vietnam, which it says has helped improve the everyday life of local consumers for the past 20 years.

P&G is the maker of popular brands including Ariel, Downy, Tide, Pampers, Gillette, Pantene, and Head & Shoulders in Vietnam.

The latest $100 million investment reaffirms the company’s commitment to a long-term operation in the country and active contribution to its eco-social development, Emre Olcer, general director with P&G Vietnam, said at the groundbreaking ceremony.

Olcer told The Saigon Times Online that P&G had been weighing whether to set up the Gillette plant in Indonesia or China.

Vietnam was the final decision thanks to its stable political situation, good infrastructure, young labor force, and the governmental support for P&G, the executive said.

P&G was also convinced by the success of two existing plants in the Southeast Asian country, he added.

P&G Vietnam is operating a plant that makes hair care products, detergent, and fabric softener and a diaper facility, both in Binh Duong, offering some 5,000 jobs to locals.

The company was one of the first foreign investors to begin production in Binh Duong, the Vietnam News Agency quoted the province’s chairman Tran Van Nam as saying.

In 2014 P&G was among the top ten foreign companies with the largest tax payment in Vietnam, thanks to five projects it operates in Binh Duong.

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