Some FDI companies talked about shifting manufacturing out of Covid-crushed Vietnam in September. This month, a Turkish enterprise is proud of its investment in Vietnam.
“Vietnam is still an attractive destination to invest in and to support our regional expansion. We position Vietnam as a regional production hub for Southeast Asia.” says Mr. Cetin Murat – General Manager of Hayat Vietnam.
Hayat – a Turkish FMCG company – officially announces today the launch of its diaper brand Molfix in Vietnam. The launch is carried by the 250 million USD investment into the country announced earlier last year and aims to leverage the company’s factories in Vietnam.
At this point, the company has to face certain challenges. According to Mr Cetin Murat – General Manager of Hayat Vietnam – many companies in the FMCG industry have been affected by the COVID-19 lockdown, in one way or another. The problem might be more acute for firms who have production facilities as their factories could not be up and running normally for a certain amount of time.
On a pandemic management perspective, when the fourth wave of COVID-19 broke out in Binh Phuoc province, 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.
However, Mr Murat maintains his positive outlook for the FMCG market in the upcoming months, particularly in Vietnam as the country prepares to enter the new normal and strict lockdowns are no longer an option. Although some restrictions still remain, he hopes that the uptake of the vaccine roll-out will lessen the impacts on business operations. On the demand side, he is likely to see no sign of decline in the demand for FMCG goods since the products produced are critical to many people’s lives.
But Hayat’s effort will need some booster. “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 Mr. Thue Quist Thomasen, Board member of EuroCham and CEO of YouGov Vietnam.”
Targeting ASEAN market
Hayat started its operations in 1987 under Hayat Holding, whose foundations date back to 1937 when Turkey was taking its first steps towards industrialization. Hayat’s total value of export sales is estimated to reach 50milion USD/year nowadays. The company’s move in Vietnam follows the success in Eastern Europe, the Middle East, and Africa throughout the last three decades. Currently, the group has more than 500 employees working in Vietnam.
Hayat’s high-tech plant in Vietnam is solid proof of how strongly this group feels about the country’s economic prospects. The new plant is designed to minimize its environmental footprint with zero emission, zero drainage and zero scrap and it plans to leverage its sustainable production systems with a 5,3 MWp solar energy investment. Specifically, the company sets to save 6,5 million MWh of electricity as part of its commitment to sustainability in Vietnam.
It will act as a regional hub and will dedicate 40% of its output to distribution in Thailand and Malaysia where Hayat has trading companies and organizations in the first phase. Cambodia, Philippines, Laos, and Indonesia will be the next potential markets for the company.
“In every new market Molfix enters, we manage to rank among the top local 2 players within two years from launch. In Vietnam we are aiming high and we plan to win a 30% market share of the baby diaper category by 2025, a major goal for a brand 100% Made in Vietnam” – Ms. Chi Nguyen – Regional Marketing Manager reveals Hayat’s ambitious vision.