World’s biggest jeweler Pandora to break ground on $150mn factory in Vietnam
World’s biggest jeweler Pandora to break ground on $150mn factory in Vietnam
Denmark-based Pandora, the world’s largest jewelry maker, will turn the first sod at its third factory worldwide in southern Vietnam with a total investment of over US$150 million in nearly two weeks, according to the Danish Embassy in Hanoi.
A solar-powered factory of Denmark-based Pandora, the world’s largest jewelry brand, in Thailand |
A groundbreaking ceremony for the new jewelry crafting facility, Pandora Production Vietnam Co. Ltd., will take place on May 16 at the Vietnam-Singapore Industrial Park 3 (VSIP 3) in Tan Uyen City of Binh Duong Province, about 40km from Ho Chi Minh City, the embassy announced on Friday.
The construction of the new factory is based on a memorandum of understanding signed between Pandora and Vietnam-Singapore Industrial Park J.V. Co. Ltd. (VSIP) in May 2022.
The new facility is set to run fully on renewable energy, aiming to meet the Gold certification level, the second-highest parameter of the Leadership in Energy and Environmental Design (LEED) green building rating system.
Once operational, the $150 million project is expected to generate employment opportunities for over 7,000 workers and manufacture approximately 60 million jewelry products annually.
Explaining their decision to choose Vietnam as the location for Pandora's third production facility globally and its first factory established outside of Thailand, the jewelry giant stated that the selection process involved careful consideration of 27 countries.
Vietnam has a rich history of craftsmanship and Pandora can find many skilled silversmiths and artisans in the Southeast Asian country, said Jeerasage Puranasamriddhi, chief supply officer of the company.
Both Binh Duong and VSIP 3 have good infrastructure and are ready for Pandora to build a factory, he commented.
Binh Duong's proximity to Tan Son Nhat International Airport in Ho Chi Minh City provides convenient transportation for the factory as most of its products will be exported, Puranasamriddhi said.
Moreover, Pandora has received ample support from the provincial government and the management board of VSIP 3.
“We are delighted that Pandora Group has chosen Binh Duong to establish a new manufacturing facility in Vietnam," Puranasamriddhi said on Pandora’s website.
The group, “with its reputation as the world's leading jewelry manufacturer and its European working standards, along with diverse career opportunities,” will bring a professional work environment to the province’s workforce, he affirmed.
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| A solar-powered factory of Denmark-based Pandora, the world’s largest jewelry brand, in Thailand |
The group announced that upon operation, the new factory will contribute to one-third of Pandora's global capacity.
“Expanding our production capacity is critical to meet expected demand, and we are ready and excited for our new chapter in Vietnam,” Puranasamriddhi said on Pandora’s website.
Currently, Pandora is running two factories in Thailand, both sourcing 100 percent of their electricity from renewable energy.
The jewelry giant said it is committed to cutting greenhouse gas emissions by 50 percent across its own operations and entire value chain of suppliers and business partners by 2030.
As the world’s largest jewelry brand, Pandora has about 33,000 employees worldwide and has sold its products to over 100 countries through 6,700 points of sale, including more than 2,600 concept stores, according to its recent report.
In the first quarter of 2024, Pandora’s revenue reached nearly $978 million.
Currently listed on the Nasdaq Copenhagen stock exchange, the group earned revenue of 3.8 billion euros (nearly $4.1 billion) last year.
Besides Pandora, VSIP 3 is also home to a $1.3 billion new factory of Danish toy maker LEGO Group, which is expected to be put into operation in the second half of 2024 as the group’s first carbon-neutral facility in the world.
As one of the largest European investors in Vietnam, Denmark now has 135 businesses operating in the Southeast Asian country, according to the Danish Embassy in Hanoi.
Besides Pandora and LEGO, many other leading businesses of the Nordic country have maintained a presence in Vietnam, including Scancom, Vestas, Carlsberg, Julie Sandlau, Copenhagen Offshore Partners, and Copenhagen Infrastructure Partners, among others.
Since establishing their diplomatic relations in 1971, Vietnam and Denmark have effectively developed their close cooperative relationship in various fields.
Currently, Vietnam is an important partner country of the Danish government in cooperation fields such as green growth, energy, water resources, health, education, food safety, culture, and trade, the embassy said.
