"I am excited about this project. With proven technology leadership and an established customer base, we are well positioned to repeat our success in Thailand, where our flexibles operation has tripled in size in five years and more than doubled its market share," said Huhtamaki CEO Timo Peltola at the company’s head office in Espoo, Finland.
In recent years, Vietnam has displayed a GDP growth of approximately seven per cent annually, while inflation has remained below five per cent. The country has a population of 80 million people, with a favorable demographic profile (58 per cent are of working age) and a literacy rate exceeding 90 per cent.
The new flexible packaging plant will be constructed near Ho Chi Minh City (formerly Saigon) in southern Vietnam. The city is the centre of the country’s growing food industry. Major multinational food and consumer products manufacturers, most of which are Huhtamaki’s customers in other markets, are rapidly strengthening their positions in Vietnam. The local packaging industry, by contrast, remains quite fragmented. The investment project will be managed by Huhtamaki Thailand.
"Vietnam offers growth, a large and educated population, as well as financial and political stability. The country has a great future as a food grower, manufacturing base and center for tourism," says Huhtamaki’s executive VP for Asia, Oceania and Africa Tony Combe.