Pandora opens $150 million jewelry factory in Vietnam to boost Asian growth

Danish jewelry giant Pandora has opened its $150 million manufacturing facility in Vietnam, betting on further growth in Asia as the company diversifies production beyond its longtime base in Thailand.

The move underscores Pandora's growing ambitions in Asia, where the company sees significant room for further expansion.

"We are clearly building the capacity today for the growth of tomorrow that we expect," President and CEO Berta de Pablos-Barbier told CNBC's "Squawk Box Asia" on Friday, adding that Asia remains a "very positive region" for Pandora after growing at 10% in the second quarter.

Its facility in Ho Chi Minh City is Pandora's first production site outside Thailand and is expected to increase the company's manufacturing capacity by around 50%. The factory can produce up to 60 million pieces of jewelry annually and will employ about 7,000 people when fully operational.

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The jewelry giant also sees growth opportunities elsewhere in Asia, particularly in Japan.

Pandora's Japan business has "pretty much doubled" in size over the only three years and continues to grow at "very high double digits," she added.

China, however, presents a different picture, with the company having seen three years of declines. However, Pandora expects to return to growth there this year.

"For the first time, we're starting to see growth coming back, and we are actually delivering better growth than we had in the previous year," Pablos-Barbier said, adding that she remains positive about the company's ability to continue growing in China.

Lab-grown diamonds

Pandora is also leaning further into lab-grown diamonds, as the jeweler sees growing consumer appetite for the more affordable alternative to mined stones.

"The consumer is making the choice based on a couple of criteria. The first one is sustainability," Pablos-Barbier said.

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She pointed to affordability and sustainability as factors driving consumers toward lab-grown diamonds. The stones cost less than mined diamonds, allowing Pandora to offer diamond jewelry at more accessible prices, while producing around 90% fewer carbon emissions, according to Pablos-Barbier.

She also pointed to younger consumers as being more environmentally conscious, though she said preferences can vary by geography.

The company's move into lab-grown diamonds was an "obvious" choice, Pablos-Barbier said, pointing to its use of recycled silver and gold as well as renewable energy at its new Vietnam facility.