Kimberly-Clark Corporation (KMB) designated Vietnam as a key manufacturing hub for its Huggies diapers and other personal care products in Southeast Asia. The decision reflects both the nation’s growing consumer market and its importance in the household product company’s global supply chain realignment.
The company is concentrating production in Vietnam to serve not only the local market but also neighboring countries, leveraging lower costs, improving infrastructure, and favorable trade access in ASEAN. Notably, Vietnam’s baby diaper market is expanding steadily, supported by rising incomes, urbanization, and increased hygiene awareness, with recent research projecting mid- to high-single-digit annual volume growth over the coming years.
An important factor is that Kimberly-Clark (KMB) has acknowledged that the global baby boom is over and seeks growth in emerging Asian markets, where it is trying to close the gap with market leader Unicharm (OTCPK:UNICY) and Procter & Gamble (PG). Using Vietnam as a factory hub signals a long-term bet on Southeast Asia’s consumer growth even as birth rates slow, with the strategy hinging on scale, cost efficiency, and the ability to out-innovate rivals in a crowded diaper landscape.