Kimberly-Clark, the maker of Huggies diapers, is reportedly expanding its Vietnamese operations in an effort to position the country as a strategic manufacturing center within the Southeast Asian market. Earlier this year, K-C purchased a three-acre tract of land adjacent to its existing facility near Ho Chi Minh, where it will increase production capacity by 40%.

The increased manufacturing in Vietnam is part of K-C’s regional expansion efforts. Currently, the No. 2 manufacturer of baby diapers in Vietnam with its Huggies brand,  K-C hopes to steal marketshare away from market leader Unicharm, which has a 25% share with its Bobby brand, and Procter & Gamble, which has a 12% share with Pampers.

 Despite lower birth rates, the Vietnamese baby diaper market is seeing mid- to high-single digit growth supported by rising incomes, urbanization and increased hygiene awareness. K-C has already begun increasing its product offerings in Vietnam hoping to grow not just in baby care markets but also other personal care areas.

In addition to Vietnam, the expansion will allow K-C to expand its offering to neighboring countries throughout Southeast Asia. Currently, half of the products made in Vietnam are exported to 18 markets.

In September, Nonwovens Industry reported that K-C would transfer four production lines from Fox Crossings, WI to sites in Malaysia and Vietnam.

.