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BUSINESS REPORT

Open to the latest

Vietnam has retained its appeal among foreign F&B brands
as a market of some potential given its positive attitudes towards
environmental and sustainability measures.

| By AN CHI

PHOTO: NESTLÉ VIETNAM

estlé Vietnam announced an addi- ment to Nestlé’s long-term investment tons of snacks for the Vietnamese and
tional investment in the opening commitment in the country. “When the Cambodian markets.
N month of 2024 of $100 million to project comes into operation, the factory’s PepsiCo Foods Vietnam now operates
boost capacity at its Nestlé Tri An factory capacity will increase and meet domestic 14 factories and distribution centers around
in southern Dong Nai province, bringing demand and effectively exploit export the country, employing 13,000 people. Pop-
total investment in the site to more than potential, making Vietnam a center for ular products include Lay’s, Poca, Doritos,
$500 million. The new capital will help supplying high-value coffee to the world,” Quaker, Pepsi, 7 Up, Aquafina, and Sting.
raise capacity to meet growing demand for he added. “At the same time, through the Meanwhile, Suntory PepsiCo, a joint
coffee, and will continue to make Vietnam project, we also hope to create many jobs venture between PepsiCo Inc. and Suntory
a center for producing and supplying high- and continue to expand our long-term Holdings Limited, is also injecting an addi-
value coffee to the domestic and world mar- investment in Vietnam, contributing to tional $185 million into building a new
kets. Products from the Nestlé Tri An factory sustainable economic development and factory in the Mekong Delta province of
have been exported to more than 29 countries prosperity in the country.” Long An, with an annual output of almost
and territories around the world. 800 million liters of products, including
Nestlé has now invested nearly $830 VIBRANT MARKET purified water, milk, and other beverages.
million through the Nestlé Vietnam Co., At the end of last December, the Ha South Korea’s HiteJinro Group also
Ltd., with four factories and two distribution Nam Provincial People’s Committee granted decided to invest an expected $100 million
centers. It is also the largest coffee purchaser an investment certificate to PepsiCo Foods in the construction of a beverage pro-
in the country, outlaying up to $700 million. Vietnam to invest VND2 trillion ($82.2 duction plant in northern Thai Binh
In Dong Nai province alone, it operates million) in building a factory in the northern province. Covering an area of 8.2 ha, the
three factories, of which Nestlé Tri An is province. Construction of the 8-ha project plant will be located at the Lien Ha Thai
one of its largest in Vietnam. It also has at the Dong Van I Industrial Park is set to Industrial Park, and will provide a step-
the most modern scale and technology of get underway in 2024, as PepsiCo marks ping stone in the Group’s foray into the
all the Nestlé factories in the region. its 30th year in Vietnam, and is scheduled Southeast Asian market.
Mr. Binu Jacob, General Director of to enter into operations in the third quarter Previously, Lotte Vietnam Co., Ltd., under
Nestlé Vietnam, said the project is a testa- of 2025. It aims for annual output of 23,000 South Korean conglomerate Lotte, inau-

32 | VIETNAM ECONOMIC TIMES | MARCH 2024 en.vneconomy.vn