Amway pours extra US$25 million into new facility
By Hung Le - The Saigon Times Daily
Amway leaders and delegates are seen at the groundbreaking ceremony of Amway’s second plant in Binh Duong Province last Friday - Photo: Hung Le
HCMC – Amway Vietnam Co., Ltd last Friday started work on its second factory in Vietnam at a total cost of over US$25 million, raising its investment capital here in the country to US$33 million.
The new facility will go up at Vietnam-Singapore II Industrial Park in Tan Uyen District in the southern province of Binh Duong. It will cover a total of 54,675 square meters, seven times larger than Amway’s first facility in Amata Industrial Park in neighboring Dong Nai Province.
Set for operation early next year, the plant will have three production lines having a combined capacity of 23,280 products, equivalent to US$200 million per year, and create jobs for over 170 locals.
According to Amway Vietnam, the project is divided into two phases with modern equipment and machinery meeting international standards. The first phase, expected to be up and running in next year’s first quarter, will focus on producing Nutrilite food supplement powder and pellets with a majority of materials imported from the U.S.
In the second phase, which is expected to go into operation in 2017, the plant will produce liquid products.
Doug DeVos, President of Amway, said that since it came to Vietnam in 2008, the firm has achieved steady growth here in Vietnam. This is why Amway has decided to continue its long-term investment pledge in Vietnam by building the second plant to meet the increasing demand of consumers, he added.
The construction of the second plant in Vietnam is part of Amway’s broader plan to export products made by Amway Vietnam to Southeast Asian countries in the near future.
Amway Vietnam reported sales revenues of over US$90 million last year and now has over 300,000 direct distributors.
According to Amway, which is known for its direct selling model, the firm has been in Vietnam for only five years but the Vietnamese market ranks 12th among over 100 countries and territories where Amway is present. With the new plant, Amway hopes Vietnam will become one of its top ten markets in 2016.