Cover On 20 May, Avery Dennison Corporation inaugurated its third factory in Cu Chi, Ho Chi Minh City, underscoring Vietnam’s pivotal role in the global textile and apparel supply chain (photo: Facebook/Avery Dennison Asean)
On 20 May, Avery Dennison Corporation inaugurated its third factory in Cu Chi, Ho Chi Minh City, underscoring Vietnam’s pivotal role in the global textile and apparel supply chain (photo: Facebook/Avery Dennison Asean)
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On 20 May, Avery Dennison Corporation officially opened its third factory in Cu Chi, Ho Chi Minh City, reinforcing Vietnam’s growing influence within the global textile and apparel supply chain.
Following the establishment of two earlier facilities in Bac Ninh and Long An, the joint venture between Avery Dennison Group (USA) and Shenzhou Group (China)—Avery Dennison Worldon Vietnam Joint Venture Company Limited—marked the launch of its latest factory within Dong Nam Industrial Park, Cu Chi District, Ho Chi Minh City, on 20 May 2025. With a total investment of US$4.7 million, the site spans nearly 4,000m² and boasts a processing capacity of up to 800,000 labels daily. The facility has been designed with flexibility in mind, ready to accommodate future expansion.
This latest venture does more than simply add to Avery Dennison’s production footprint. It also signals a progressive step with the integration of high-tech solutions, including RFID smart labels and Embelex digital identification products—technologies that promise greater transparency and efficiency across the supply chain. Vietnam’s ascent on the global textile map is evident, and this milestone illustrates a deepening model of transnational cooperation between industry leaders.
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Vietnam on the journey to become a global textile manufacturing centre
Above Mr Michael Barton, Senior Vice President and General Manager of Apparel Solutions at Avery Dennison Group, and Mr Ma, Chairman of Shenzhou Group, shake hands to mark the partnership between the two companies (photo: Facebook/Avery Dennison Asean)
Mr Michael Barton, Senior Vice President and General Manager of Apparel Solutions at Avery Dennison Group, and Mr Ma, Chairman of Shenzhou Group, shake hands to mark the partnership between the two companies (photo: Facebook/Avery Dennison Asean)
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Avery Dennison’s decision to expand its presence in Vietnam through the new Cu Chi factory is more than a corporate milestone. It echoes the shifting dynamics of global supply chains that are steadily placing Vietnam in a central role on the world’s textile and apparel production map.
Speaking at the inauguration, Mr Michael Barton, Senior Vice President and General Manager of Avery Dennison’s Apparel Solutions Division, noted: “Vietnam is playing an increasingly important role in the global supply chain with a solid manufacturing foundation and an abundant, dynamic and highly skilled workforce. Our continued investment here reflects our belief in the country’s potential as well as our long-term commitment to contributing to the sustainable development of Vietnam’s industry.” His remarks reflect the country’s appeal not only as a manufacturing destination but also as a strategic player in the global production network.
The selection of Cu Chi for this new facility has been described as a well-considered strategic move. The location balances industrial ambition with regional development foresight. Positioned at the northwest gateway of Ho Chi Minh City, the area offers logistical advantages, linking easily to major industrial zones and arterial transport routes. As costs rise within inner-city industrial hubs, Cu Chi presents a compelling alternative for investors seeking long-term viability without compromising on efficiency.
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“Leverage” creates momentum for comprehensive and sustainable development
Above Mr Michael Barton, Senior Vice President and General Manager of Apparel Solutions at Avery Dennison, spoke at the inauguration ceremony (photo: Facebook/Avery Dennison Asean)
Mr Michael Barton, Senior Vice President and General Manager of Apparel Solutions at Avery Dennison, spoke at the inauguration ceremony (photo: Facebook/Avery Dennison Asean)
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Avery Dennison is not only focused on developing its factories in Vietnam as a core hub but also on integrating research and development (R&D) into the group’s global ecosystem. This approach offers the potential to position Vietnam deeper within the global value chain, not merely as a processing centre but as a source of advanced solutions and technologies, unlocking numerous opportunities for broad and sustainable growth.
Mr Barton also highlighted the group’s commitment to advancing circular economy initiatives, reducing environmental impact and adopting Scope 3 emission measurement standards, a framework assessing emissions throughout the entire supply chain. These efforts mark an important step towards greening and modernising Vietnam’s industry, reflecting the company’s social and environmental responsibility within its development strategy.
Avery Dennison is striving for a deforestation-free future and remains firmly committed to meeting its sustainability targets.
The opening of the third factory significantly bolsters foreign direct investment (FDI), as Vietnam increasingly showcases its strengths in comprehensive infrastructure and a highly skilled workforce. Beyond expanding production capacity, this event energises strategic cooperation between Avery Dennison and the Vietnamese market, promoting sustainable economic growth and enhancing Vietnam’s standing on the global stage.
Coupled with a young, dynamic workforce adept at rapidly adopting new technologies, active support from local authorities further cements Vietnam’s appeal as a high-tech manufacturing destination. These advantages enable Avery Dennison to pursue its vision of transforming Vietnam into a leading innovation and high-tech manufacturing hub in the region, while growing its influence within the group’s worldwide value chain.
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The problem to be faced to realise the set goals
Above With a total investment of US$4.7 million, the factory covers nearly 4,000m², has a processing capacity of up to 800,000 labels per day and is designed with flexibility for future expansion (photo: Facebook/Avery Dennison Asean)
With a total investment of US$4.7 million, the factory covers nearly 4,000m², has a processing capacity of up to 800,000 labels per day and is designed with flexibility for future expansion (photo: Facebook/Avery Dennison Asean)
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Vietnam is emerging as a strategic manufacturing centre thanks to competitive labour costs and a favourable location in Southeast Asia, attracting multinational companies like Avery Dennison to scale up operations. Yet, amid global economic uncertainty and escalating trade tensions, supply chains face numerous challenges. Disruptions in raw materials, rising transport costs and new trade barriers could seriously affect the efficiency of these new factories.
Alongside efforts to maintain stable production, Avery Dennison sets ambitious sustainability targets, using eco-friendly materials and green technologies. Achieving these ambitions is demanding, especially in early stages, requiring heavy investment in modern technology and upskilling teams. Meanwhile, strict compliance with Vietnam’s tightening environmental regulations remains essential as the country moves towards a greener economy.
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The growth of international enterprises offers opportunities for local economic development and job creation. However, without rigorous oversight, industrial activity risks environmental pollution that could tarnish Vietnam’s reputation among global investors. To maintain its allure as a sustainable manufacturing destination, Vietnam must enhance regulatory controls and encourage clean technology adoption as a prerequisite.
Moreover, human resources present an urgent challenge for the domestic training system. Avery Dennison’s new factory operates on a high-tech platform, particularly in automation and RFID, requiring a workforce with specialised skills. This pushes Vietnam to invest more heavily in vocational education and workforce development. Without timely adaptation, parts of the current labour force risk exclusion from the high-quality labour market.
