How Hashimoto Cloth Corp. Advances Global Demand for High-Performance Nonwoven Solutions

When we speak of Japanese manufacturing, words such as craftsmanship, durability, and innovation immediately come to mind. Yet your industry also faces growing challenges. Competition from China and India continues to intensify, particularly in the low-cost product segment. At the same time, trade policy uncertainty — for example, tariffs introduced under former U.S. President Donald Trump — has created volatility for exporters. Given this context, could you share your outlook for your sector over the next 12 months, and how your company is responding to these challenges?

Thank you. Our company specializes in the production of nonwoven consumable products. In our case, dependence on the U.S. market is relatively limited, so the impact of U.S. tariffs or similar measures is not as severe as it may be for some other sectors. However, the challenge we face is competition from companies that sell aggressively into the Japanese and Southeast Asian markets when they can no longer sell in the U.S. These competitors come from China, Vietnam, and other parts of Southeast Asia. For us, this means an increasingly tough battle. So, while geopolitical uncertainty is not our main concern, global competition most certainly is. And this challenge is not unique to us — many Japanese companies are facing the same situation.

Beyond global trade, Japan also faces domestic demographic pressures. We expect a 12% labor shortfall by 2040, and the national population may decline to around 100 million by 2050 or 2060. This presents a dual challenge: a shrinking domestic market and increased competition for labor. Your company was ahead of the curve in 2019 when you established a plant and sales office in Vietnam, positioning it not only as a cost-cutting measure but also as a strategic base for growth in Asia and for retaining skilled trainees. Six years on, how central is internationalization — both for your company and for Japan’s SMEs more broadly?

The decline in Japan’s labor force is undeniable. Our industry still requires significant human involvement, and younger workers are becoming scarce. That is why Vietnam has become so important to us. In addition to cost advantages, Vietnam offers a young and dynamic workforce. Vietnam also offers a strong base for sales. Many young professionals there are fluent in multiple languages — English, Chinese, Japanese — which makes international business far more effective than if we tried to manage everything from Japan. Vietnamese staff bring both capability and ambition; they are hungry to succeed, and that energy benefits our company enormously.

Out of curiosity, what percentage of your company’s sales currently comes from Vietnam?

Approximately 20% of our total sales come from products manufactured inVietnam. This figure includes items produced in Vietnam and sold both locally and in Japan.

Prototype of the mask charger

Do you have set targets for expanding that share — for example, raising it to 25–30% — or increasing your Vietnamese workforce by a set amount?

We do not set percentage-based targets or rigid KPIs. While Vietnam’s GDPis roughly one-tenth that of Japan, we do not believe our Vietnam-related sales should remain at one-tenth. Over the next decade, our aim is to grow Vietnam to a level comparable with Japan. To achieve this, we are actively expanding sales not only to local Vietnamese companies and Japanese firms operating in Vietnam, but also to other international companies based there.

Could your Vietnam model be replicated elsewhere in Asia? For example, would you consider opening a base in Malaysia, Thailand, or the Philippines?

At present, we have no concrete plans for another production base. However, we are closely examining India as a potential sales base. Many Japanese companies are now investing in India, and demand for consumable products there is growing rapidly. Unlike China, which already has high-quality local production, India still depends on imports for many essential consumables. This presents us with an opportunity, particularly to serve Japanese manufacturers operating in India.

Vietnam has clearly been an excellent hub for you. Are you also considering sourcing labor from other countries — for example, Indonesia, the Philippines, or India?

To be honest, we do not have such plans. In my experience, Japanese and Vietnamese people share a very compatible way of thinking. This cultural affinity makes collaboration much easier than with other countries. I have worked in the Netherlands and the U.S., where I interacted with many Indian colleagues, for instance. While they are excellent in scientific research, I found it more difficult to build cohesive production teams with them. For production, the cultural fit with Vietnam has proven ideal.

If you are not sourcing labor from other countries, are you addressing demographic challenges through digital transformation and automation — robotics, AI, and so on?

Absolutely. For our generation, automation and digitalization are simply a necessity. We collaborate closely with machinery manufacturers to improve productivity and speed. Warehouse automation, for example, is something we consider essential. Interestingly, while many companies are going fully digital, we often take the opposite approach in customer communication. Many of our clients in Japan are in their 50s and 60s, and they prefer physical documents over emails or digital references. So, while we adopt DX in our production, in sales we continue to rely on tangible paper-based communication, because that’s what our customers value.

99% naturally derived sustainable mask

Your company began in 1972 as a wallpaper exporter, pivoted to nonwovens after the Hanshin earthquake, and now operates across five segments: industrial wipes, cleanroom consumables, masks and protective wear, disaster-preparedness goods, and filters. Which segment represents the strongest business opportunity for Hashimoto Cloth today?

Without doubt, industrial wipes. People often assume wipes are simple, inexpensive commodities like toilet paper. But in reality, wipes for industries such as electronics and semiconductors must meet extremely high standards. Dust-free, highly efficient wipes are critical to these sectors. Japan’s strength lies in meticulous attention to detail, and our wipes reflect that. While Chinese companies may flood the market with cheap mass-produced wipes, our focus is on precision and niche applications. I believe demand for these high-quality wipes will continue to grow, both in Japan and internationally.

You have both OEM capabilities and your own branded lines, such as Miracle Wiper and Botanical Mask. How do you balance and create synergies between these two approaches?

Our product development often begins with direct requests from customers. For example, we once developed a specialized filter for factory control panels, responding to a very specific client need. Sometimes these solutions remain OEM products, other times we expand them into branded offerings if we see broader potential. The synergy lies in our ability to prototype quickly, respond directly to customer demands, and then decide whether the product should stay as a client-specific OEM or become a national brand.

Many of our readers are potential OEM partners. Why should they choose Hashimoto Cloth?

Our strengths lie in three areas. First, planning and speed — we excel at design thinking and rapid prototyping, responding faster than large corporations can. Second, our dual production base — we maintain detailed, flexible production in Japan, while our large-scale Vietnam factory allows for cost-effective mass production. Third, our expertise in nonwovens. Japan has very few specialists in this field. We conduct regular study meetings internally, keeping our technical knowledge fresh and deep. This foundation of expertise is rare and invaluable.

Congratulations on being the official mask supplier for the Osaka-Kansai Expo. What does this mean strategically for your company?

Thank you. Our products were used behind the scenes — in medical and rescue rooms rather than on display — but the partnership gave us visibility and credibility. The Expo logo on our business cards has already led to an increase in inquiries.

Hashimoto Cloth Vietnam Factory

Japan has a culture of disaster preparedness due to earthquakes, typhoons, and other risks. Do you see opportunities to collaborate internationally in this field?

Absolutely. Japan has developed a mindset of preparedness that many countries do not yet share. We produce absorbent products for floods and typhoons, but in places like Vietnam, awareness is still low. Local companies there are not yet interested. That said, governments and Japanese companies abroad understand the importance. We believe that as mindsets shift, there will be significant opportunities to expand disaster-preparedness goods internationally.

Your company collaborates with universities such as Tokyo and Stanford, and you have published peer-reviewed research on biodegradable filters. Could you tell us about this innovation?

Yes. We developed a sustainable mask made 99% from biodegradable plant-based materials — cotton for the base, and polylactic acid (PLA) for the filter. The pandemic highlighted two issues: shortages due to limited storage capacity, and environmental concerns from mask waste. Most masks lose filtering performance after 5–7 years in storage, and then must be discarded. This generates huge amounts of waste. We are developing technology, together with universities, to recharge masks by restoring the electrostatic charge on filters — the mechanism that catches and repels viruses. This means masks could be washed, recharged, and reused, significantly reducing both environmental impact and costs. We are now on our third prototype, with government support through NEDO funding. We expect to launch the product at the end of next year.

Finally, if we were to return five years from now for another interview, what would you like Hashimoto Cloth to have achieved by then?

In five to ten years, I want Hashimoto Cloth to be recognized as a truly global company, not one dependent solely on the Japanese market. We are proud to be based in Shiga, Japan, but we want equal accessibility to markets worldwide — in Southeast Asia, in Europe, and beyond. Equally important, I want us to be known for stability. Our products — whether masks, wipes, or disaster-preparedness goods — may seem small, but if they are unavailable, entire production lines or social systems can be disrupted. My goal is for us to continue providing a stable supply of these essential items, not just in five years, but in ten, twenty years, and beyond.

For more information, please visit their website at: https://www.hashimoto-cloth.com/

To read more about Hashimoto Cloth, check out this article about them.