16:24 | 18/08/2015 Companies
(VEN) - In 1995, P&G was one of the very first US companies to arrive in Vietnam after the normalization of US-Vietnam relations. Just a year later, it began work on its first production site in Binh Duong. This year, along with the two nations, P&G celebrates its 20th anniversary in Vietnam, having proven itself as one of the most successful US investors in the country. Vietnam Economic News’ My Phung spoke to P&G Vietnam General Manager Emre Olcer about the factors that have made the company a highlight of trade and investment ties between the two countries, its achievements and future plans.
What are your views on the development of FMCG (Fast-Moving Consumer Goods) in Vietnam in recent years, and how has P&G positioned itself in this growth?
Vietnam has become an increasingly important market for P&G. After joining the WTO, the Vietnamese economy has grown remarkably, and the FMCG industry has been part of this, recording strong growth, particularly from 2009-2011. The Vietnamese government has tried their best to create a more favorable investment environment for foreign businesses in terms of infrastructure, and protection of their interests, an improved law and regulation corridor, security and human resources. This provision of favorable conditions and incentives has allowed firms like P&G to invest and grow.
This climate has enabled P&G to increase production volume by 40 times. Our business has expanded 12 times and we have seen an average double digit growth rate in the last 15 years.
Could you share P&G’s major achievements over the last two decades in Vietnam?
Today P&G is among leading FMCG companies in Vietnam with 14 trusted and innovative brands that touch and improve Vietnamese lives every day, like: Ariel, Pampers, Downy, Pantene, Tide, Head & Shoulders, and Gillette.
As of this year, P&G has built three manufacturing plants in Binh Duong Province with a total investment of over US$360 million, helping establish a strong local supply base, stimulate the consumer goods industry, and contribute to the development of new industries like advertising and media. This has also led to the creation of 5,000 jobs for local Vietnamese, via direct and indirect employment opportunities.
P&G has successfully developed people and local talent - the two most important assets of P&G wherever they are in the world. Thanks to the “Promote from within” policy, 95 percent of P&G employees here are local Vietnamese. In leadership team and more senior roles, the ratio is 50 percent. P&G Vietnam is well regarded as an employer of choice, ranking second in “Vietnam’s 100 Best Places to Work” in 2013.
With its consistent business growth over the last two decades, P&G Vietnam has received multiple merit recognitions from the Government of Vietnam and local authorities, including the Second and the Third Labor Medals presented by the President of Vietnam.
What would you say are P&G’s core commitments in Vietnam?
We are committed to making P&G the most respected FMCG company in Vietnam. We will stay focused on getting understanding Vietnamese consumers and offering them innovative products to improve their daily lives.
The accelerated growth of Vietnam as an emerging economy and P&G Vietnam’s business performance (average double digit in the last 15 years) has placed it in P&G Asia and ASEAN’s priority market list.
For further business in Vietnam, P&G has expanded its investment with the Gillette manufacturing facility in Ben Cat, Binh Duong as another reflection of its commitment to long-term development of the local economy. P&G’s new investment will help increase Vietnam’s export volume, and enhance the nation’s image as a good investment destination, especially after the conclusion of TPP negotiations.