U.S. food and beverage giant PepsiCo has announced plans to invest an additional US$400 million in Vietnam
US$400 million in Vietnam to construct two new plants powered by renewable energy, as confirmed by the Vietnamese government.
The investment comes as part of PepsiCo’s long-term growth strategy, aiming to capitalize on the increasing demand for its products in Vietnam, a country with a rapidly growing economy and a burgeoning middle class.
According to the Vietnamese government, one beverage manufacturing factory will be situated in southern Long An Province, with an estimated investment of over US$300 million.
Another facility for food processing will be located in northern Ha Nam Province, with an investment of US$90 million.
The decision to invest in these new facilities underscores PepsiCo’s commitment to expanding its presence in Vietnam and meeting the needs of its growing consumer base.
Construction of the food processing facility in Ha Nam is slated to commence in early 2024, with completion expected by the second half of 2025.
The plant, covering 80,000 square meters within Dong Van I Expansion Industrial Park, will specialize in producing PepsiCo’s snack products and aims to supply over 23,000 tonnes of snacks annually to both the Vietnamese and Cambodian markets.
In addition to its manufacturing initiatives, PepsiCo plans to implement high-tech agriculture and sustainable programs in Ha Nam Province, employing regenerative agricultural methods and digital technology to conserve water and protect soil.
This significant investment follows PepsiCo’s ongoing expansion efforts in Vietnam. Last July, Suntory PepsiCo, a joint venture between PepsiCo Inc. and Suntory Holdings Limited, received approval for an investment registration certificate to establish a beverage manufacturing factory in Long An Province.
The facility, with an annual output capacity of nearly 800 million liters, will produce purified water, milk, and other beverages.
PepsiCo’s presence in Vietnam dates back to 1994 when it formed a joint venture with IBC International Beverages Company.
Since then, PepsiCo has steadily expanded its operations, currently owning and operating five factories across various localities in Vietnam, including Ho Chi Minh City, Dong Nai, Can Tho, Bac Ninh, and Quang Nam.
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