Amway tills manufacturing garden

Can you describe the potential of Vietnam’s direct selling market?

Amway’s sales in Vietnam have grown steadily since its expansion to the nation seven years ago. It has become an important market for Amway globally. Despite it being such a new place for us to do business, it has exhibited resilience and sustainability in its development over its nascent years.

The company now has more than 30 per cent market share in Vietnam, due to the hard work and diligence of its 300,000 distributors and the high quality of Amway products. With its young and energetic population, the direct selling market is poised to grow further as income levels rises and the middle class segment grows in size.

With support from the Vietnamese government, providing a favourable manufacturing environment and the recent developments in trade pacts regionally and globally, (e.g. the ASEAN Economic Community, or AEC), it could make exports of products made in our Vietnam manufacturing facilities viable and attractive to regional markets. As our manufacturing facilities in Vietnam manufactures products conforming to international quality standards, it could help to grow our local market size and boost exports as well in the years ahead.

Amway Vietnam’s second factory is set to begin operations, pumping out 23 million products per year

How will the second factory indicate that Amway is committed to Vietnam’s market?

In 2008, we built the first factory in the southern province of Dong Nai. To meet growing business needs, Amway decided to build the second plant in Binh Duong, with the investment of $25 million. This new facility focuses on producing Nutrilite health supplement products. Nutrilite is the world’s number one selling vitamin and supplements brand *.

Vietnam has begun to serve as a manufacturing base for Amway to export products to neighboring countries. With its high Goods Manufacturing Practice (GMP) standards and quality focus in both factories, we have started exports of Amway’s locally manufactured products to Thailand. We could utilise even more of the manufacturing facilities to increase the export volumes in the future.

As one of four markets where Amway chose to build factories, and one of the few direct selling companies with a factory in the Vietnamese market, we expect to welcome a large number of visitors to our Brand Experience Centre, which will also be sited in this new manufacturing facility. It will be open to government, media, distributors, and customers to visit and learn more about the high GMP standards in our manufacturing process and experience how our brands bring to life the high quality of our products.

Apart from the manufacturing plant, Amway is also committed to the Vietnamese market by establishing 12 branches throughout Vietnam and three distributor training centres in Hanoi, Can Tho, and Ho Chi Minh City.

Amway plans to grow Vietnam’s multi-level marketing sector

What will be the impact of this project on Vietnam, in terms of economic growth, talent development, product development, and economic sustainability?

Amway is a people-oriented company. We believe in helping people develop their potential to succeed in achieving their goals in life. With this new manufacturing facility in Bin Duong, there will be lots of opportunity for us to transfer new technology and develop our staff to upgrade their skills and capabilities. This is a continuous talent developing process as we continue to strive higher.

Amway’s core values are family, freedom, hope, and reward. Our business is simply about helping our distributors to be successful in their Amway business and being guided in all our actions by our core values. Hence in every community that we operate, we will always look to support the sustainability and the growth of the community. We also spend a huge sum annually on our global research and development facilities to develop new and innovative products to help people live better lives.

How will Amway contribute to developing the economy and also the multi-level marketing (MLM) industry in Vietnam?

Amway is the only company in Vietnam’s MLM industry with two factories. With these manufacturing facilities, Amway Vietnam has the capability to produce health supplements, personal care, homecare and beauty products. This capacity will boost the availability of quality products domestically to benefit local consumers and also could increase exports of these products to Asia.

Furthermore, Amway also wants to contribute to the socio-economic growth of Vietnam, creating employment opportunities and raising income for Vietnamese workers. We promise to continue to bring many benefits to the economy of Vietnam. This new factory will also help us serve our customers better and meet our planned business growth in the coming years and contribute towards the growth of the MLM industry in Vietnam.

* Source: Euromonitor International Limited; Vitamins and Dietary Supplements, World, GBN, Retail Value Sales RSP, per cent breakdown, 2013.