Vietnam’s Hygiene Market Gains Traction, Foreign Investment Drives Local Production

Vietnam’s hygiene products market is eperiencing accelerated growth in 2026, fueled by a young population, rising disposable incomes, and increasing health consciousness. According to Statista, the market size reached 3.2 billion in 2023 and is projected to grow at a CAGR of 9.1% to hit 5.1 billion by 2028, making it one of the fastest-growing segments in Southeast Asia’s consumer goods sector.
The baby Diaper Segment dominates with 45% of the market share, supported by Vietnam’s high birth rate (1.6 children per woman) and growing urbanization—over 40% of the population now lives in cities. The menstrual hygiene segment is also expanding rapidly, with a CAGR of 11.2%, as government campaigns and private-sector initiatives raise awareness about safe and sustainable hygiene practices. Adult incontinence products remain a smaller segment but are growing steadily, driven by an aging population and improving healthcare infrastructure.
Foreign investment has been a key driver of Vietnam’s hygiene market growth. International giants like Unicharm (Japan), Kimberly-Clark (US), and P&G (US) have established manufacturing facilities in the country, leveraging Vietnam’s low labor costs and strategic location for exports to Southeast Asia.Unicharm Vietnam, which produces MamyPoko Diapers, recently invested $60 million to expand its plant in Binh Duong Province, increasing annual capacity by 30% to 3.5 billion units. “Vietnam is a strategic hub for us, offering access to both domestic and regional markets,” said Takashi Honda, General Director of Unicharm Vietnam.
Local manufacturers are also emerging as strong competitors. Vinamilk, Vietnam’s leading dairy company, extended its product line to include Baby Diapers under the “Vinacare” brand, leveraging its existing distribution network to reach rural areas. Another local player,Hygiene Care Vietnam, launched biodegradable menstrual pads made from bamboo fiber, capturing 8% of the premium segment within a year of launch. “Vietnamese consumers are increasingly eco-conscious, and we’re focusing on sustainable products to differentiate ourselves,” said Nguyen Thi Mai, CEO of Hygiene Care Vietnam.
Vietnam’s participation in free trade agreements (FTAs) like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA) has further boosted exports. In 2025, hygiene products exports reached $480 million, with key markets including Cambodia, Laos, Thailand, and the EU. Industry experts expect exports to grow by 15% annually over the next five years, as manufacturers enhance product quality to meet international standards.


