Turkish FMCG company Hayat officially announced the launch of its leading diaper brand Molfix in Vietnam. The launch is carried by the $250 million investment into the country announced earlier last year and aims to leverage the company’s factories in Vietnam to distribute both domestically and regionally.
With a 32-hectare factory located at Becamex Binh Phuoc industrial park which possesses a favorable geographic location for trading, Hayat expects that Vietnam will be our “ASEAN hub” that enables it to enter other markets of neighboring countries in the ASEAN region.
The company's plan is to export around 40 per cent of output in Vietnam to Thailand, Malaysia, and other regional markets via its locally established companies in these countries.
Cambodia, the Philippines, Laos, and Indonesia will be the next potential markets for the company. Hayat’s total value of export sales is estimated to reach $50 million per year. On top of the existing hygiene business, Hayat is planning to invest in a 60 thousand tons/year tissue mill and a 250 thousand tons/year detergent plant.
“In every new market Molfix enters, we manage to rank among the top local 2 players within two years from launch", said Chi Nguyen, Hayat's regional marketing manager.
Chi Nguyen reveal that the company had spent four years on the survey about the Vietnam market. Ninety per cent of the global population growth during the next 50 years will be in Asia and Vietnam's baby diaper market as one of the biggest potential markets of Asia is expected to grow by double-digit growth rates during 2021 - 2027.
Moreover, Vietnamese consumers' increasing income and intellectual level is an opportunity for Hayat with innovative, high-quality products.
Besides the market's potential, the investment environment of Vietnam is also a reason for Hayat's decision. The country has a young and innovative labor force. Vietnam, a politically stable country, is also an emerging country that has signed many free trade agreements with giant partners including the EU.
“Vietnam is an attractive destination to invest in and to support our regional expansion. Our high-tech plants, innovative products, and marketing investments are solid proof of how strongly we feel about Vietnam’s economic prospects", said general manager of Hayat Vietnam Cetin Murat.
Cetin Murat stated that Hayat would take a role in the continued success of Vietnam’s economy and in the development of its FMCG industry through employment opportunities, export capacity, technology transfer, and by laying the foundation for more Turkish enterprises to invest in Vietnam.
Hayat Vietnam is established with an investment amount of 100 million USD and now offers employment for more than 500 people. The company's factory has commenced its construction when the pandemic first broke out in Vietnam. Not once did it stop even for a single day despite facing numerous challenges along the way, especially during the early days and the recent stringent lockdown period in Vietnam.
In response to the fourth wave of the Covid-19 outbreak in Binh Phuoc, Hayat was one of the first factories in the province to launch the “three-on-the-spot” guidelines, working to protect employees and maintain operations.
"This is because we have set particular ambitious goals for the Vietnam market, and we will be working relentlessly to meet those goals", said Cetin Murat.
In the upcoming period, Hayat looks forward to receiving constant support from the Binh Phuoc province so that it can continue to plan to expand the second phase project in accordance with the commitment to invest all $250 million.
Board member of EuroCham Thue Quist Thomasen said it is critical that Vietnam keeps a strong focus on creating the best possible conditions for foreign direct investment companies as the country reopens. The successful investment of Hayat into Vietnam is a testament to the fact that conditions are improving.
"European businesses are sustainable, innovative, and the best long-term partners for Vietnam. With the EU Vietnam Free Trade Agreement, Vietnamese consumers will get access to world-class products while Vietnamese businesses will flourish from the access to the world’s biggest market", said Thue Quist Thomasen.