Amway invests a further $20m in Vietnam site

By Andrew MCDOUGALL

- Last updated on GMT

Amway invests a further $20m in Vietnam site

Related tags Ho chi minh

Direct seller Amway has continued to flex its financial muscle and invest further in manufacturing and R&D by injecting a further $20 million to build its second manufacturing site in Vietnam.

The new facility is part of more than $375 million in planned manufacturing and R&D expansion for the company, having been based in Ho Chi Minh for five years.

The move is all part of Amway’s global manufacturing expansion designed to meet growing global product demand.

The company expects the construction of the new facility in Binh Duong to be completed in 2015, and will produce the company's personal care products as well as its top-selling Nutrilitet brand of vitamin, mineral and dietary supplements, as well as personal care products.

This will take over from the existing Vietnam manufacturing site for Amway, located in the province of Dong Nai.

Big picture

Looking at the big picture, Amway plans $375 million in global manufacturing and R&D expansion in Vietnam, China and India as well as four US operations for manufacturing and processing its vitamins and supplements.

New research and development facilities, and pilot laboratories, are under construction in Buena Park, California.

In addition, a $10 million botanical research and experience center in Wuxi, China, will help integrate scientific knowledge used in product development with the historic use of traditional Asian plants.

Potential

Amway parent company, Alticor, reported record global sales of $11.3 billion for 2012 earlier this year, compared with 2011 sales of $10.9 billion; another consecutive year of growth for the company, with sales increases 12 out of the past 13 years.

For the first time in more than 20 years, sales increased in each of the top 10 markets for Amway, including China, India, Japan, Korea, Malaysia, Russia, Taiwan, Thailand, Ukraine and the United States.

"We're excited to announce another record year of sales performance at Amway,"​ said Steve Van Andel, Amway chairman.  "We see even more potential for growth in 2013.”

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