Shiseido Completes Factory in Vietnam

Shiseido has completed construction of a cosmetics production factory in Vietnam. The factory, which has been under construction in Amata Industrial Park, Long Binh Ward, Bien Hoa City, Dong Nai Province, will become a production base mainly for products targeting the middle-income group in Asia, including China, where company executives expect major growth in the future.

Shiseido’s current Three-Year Plan, started in 2008, is attempting to make the company “a global player representing Asia with its origins in Japan.” Overseas sales accounted for around 38% as of the fiscal term ended March 2009, whereby Shiseido aims to expand this ratio to more than 50% by 2017. In line with this objective, strengthening its production system on a global level that particularly addresses China and other Asian markets, which are continuously expanding and growing, has been an urgent issue.

To this end, Shiseido has established Shiseido Vietnam Inc., a wholly owned manufacturing company, in April 2008. Construction of the new factory began in December 2008 in view of the fact that Vietnam is situated in the center of ASEAN countries and has beneficial conditions, including geographically and in terms of exports, as well as with regard to transportation costs, reduction of time and tariffs within the ASEAN region. The country also boasts a young and vibrant workforce.

The factory will commence full-scale operations from April following the completion of construction in February and primarily manufacture products such as men’s cosmetics, hair styling agents and facial cleansers for the Japanese market. As the main production base of Shiseido’s masstige business, which will be developed on a full scale in the next Three-Year Plan starting in 2011, the factory will manufacture products targeting the middle-income group in Asia expected to achieve significant growth in the future.