In 2025, the group acquired an additional 1.2 hectares of land adjacent to its existing factory located about an hour from Ho Chi Minh City, enabling a 40 per cent expansion in production capacity. The investment is part of a broader plan to increase export output. At present, half of the products made in Vietnam are shipped to 18 markets.

“Vietnam plays a critical role for us, not only in manufacturing but also in innovation,” said Nitish Gupta, managing director of Kimberly-Clark Southeast Asia.

Despite continued investment, Kimberly-Clark has yet to reach the market leadership it enjoys elsewhere. According to Euromonitor, in 2023, Unicharm's Bobby held 25 per cent of Vietnam's nappy market, followed by Huggies with 22 per cent and Procter & Gamble's Pampers at 12 per cent.

Analyst Haikal Sufiyan noted that Unicharm benefits from a strong product range spanning affordable to premium segments, reinforced by frequent introductions of features tailored to Vietnamese parents, such as easy-to-change pants nappies.

Vietnam's fertility rate fell to a historic low of 1.91 children per woman in 2024, according to the General Statistics Office. Even so, demand for nappies is not limited to infants, and the three major players are expanding into products for adults with incontinence needs.

In Vietnam, Kimberly-Clark last year launched two such products as part of efforts to narrow Unicharm's competitive advantage. “This is how we can help improve people's quality of life through our products,” Gupta said.

Ageing populations across the region are also reshaping the hygiene and care market. World Bank data shows that in 2025, Singapore will become the first Southeast Asian country where people aged 65 and above account for 20 per cent of the population, followed by Thailand at 15 per cent and Vietnam at 9 per cent.

Sufiyan advised companies to offer larger pack sizes, between 10 and 20 pieces per pack, at competitive prices to meet evolving consumer needs.

To remain competitive in the digital age, Kimberly-Clark is also experimenting with new approaches, including partnerships with influential parenting communities and stronger e-commerce engagement.

“I believe Vietnam is becoming a key export base to a wide range of international markets. Our growth from this market has been remarkable,” Gupta added.