Danish jeweler Pandora has opened a new $150 million factory in Ho Chi Minh City, its first manufacturing site outside Thailand. The company says the plant will lift its total production capacity by roughly 50%, a significant step as it looks to meet global demand and reduce reliance on a single country for making its jewelry.
Historically, Pandora has produced everything in Thailand across three factories. The Vietnam site marks a major shift in its supply chain strategy. At full scale, the new factory can make up to 60 million pieces a year, compared with the 112 million pieces Pandora sold in 2025. CEO Berta de Pablos-Barbier told Reuters that Vietnam may start at about 15% of global capacity and rise to roughly one-third by 2030. Production there is meant to serve Pandora's worldwide demand, not just one export market.
Why diversify now?
Pandora's move comes as global supply chains face growing pressure from trade policy uncertainty, including potential US tariffs on goods made in Vietnam. By spreading production across two countries, the company aims to reduce operational risk. It also plans to use the new site to make more platinum-plated products, which could help reduce its exposure to volatile silver prices—a key cost input for the company.
The expansion is not just about making more jewelry. When production capacity is tight, companies often face a choice: leave demand unmet through out-of-stocks, or pay extra for overtime, outsourcing, and rush shipping to keep shelves stocked. Pandora's added capacity should ease those bottlenecks, especially during peak holiday seasons when demand spikes.
What it means for investors
For investors, the 50% capacity boost matters less for the sheer volume of jewelry and more for what it does to Pandora's margins. With more production capacity, the company can spread fixed costs—like equipment and staffing—across a larger number of pieces, potentially lowering the cost per unit. That could help Pandora convert US demand into shipped product more efficiently, which in turn supports operating profit.
As the Vietnam footprint grows from around 15% of capacity toward one-third, Pandora should be better positioned to keep up with demand during busy periods without resorting to costly fixes. This is a positive for the company's margin story, particularly in the US market, where Pandora has been investing heavily in growth.
That said, the new factory also introduces new risks. Vietnam is not immune to trade tensions, and any tariffs on Vietnamese goods could raise costs. Investors will be watching how Pandora manages those risks, as well as how quickly the plant ramps up to full production.
The broader context: Vietnam has been gaining attention as a manufacturing hub, though recent market upgrades have not always sparked foreign buying. Still, for a company like Pandora, the country offers a strategic alternative to Thailand.
For everyday investors, the key takeaway is that Pandora is making a long-term bet on supply chain resilience. If it pays off, it could mean steadier profits and fewer out-of-stock disappointments. If trade tensions escalate, however, the benefits could be delayed.
As always, this is not a recommendation to buy or sell Pandora stock. But understanding how a company manages its production can give you insight into its future profitability.
