PepsiCo commits $400 million to build new factories in Ha Nam and Long An
American food and beverage company PepsiCo Inc will inject an additional $400 million into the construction of two new plants in Vietnam.
The commitment was made by a company representative on March 21 at a meeting between Prime Minister Pham Minh Chinh and a delegation of 60 US businesses during their three-day working visit to Vietnam.
PepsiCo will build a food processing factory in the northern province of Ha Nam with a total investment of $90 million. It will also pour more than $300 million into building a beverage manufacturing factory in the southern province of Long An. Both factories will be powered by renewable energy.
In December 2023, PepsiCo obtained an investment registration certificate from Ha Nam People's Committee to develop the food processing facility. The Ha Nam factory will cover 80,000 square-metres within Dong Van I Expansion Industrial Park and specialise in producing PepsiCo's snack products. It aims to supply over 23,000 tonnes of snacks a year to the Vietnamese and Cambodian markets.
Construction is scheduled to begin in early 2024 and be completed by the second half of 2025. PepsiCo also plans to develop high-tech agriculture and sustainable programmes in the locality to apply regenerative agricultural methods, including digital technology, to help save water and protect soil.
Last July, Suntory PepsiCo, a joint venture between PepsiCo Inc. and Suntory Holdings Limited, also received an investment registration certificate from Long An People's Committee for a beverage manufacturing factory. The facility has an annual output of almost 800 million litres of products, including purified water, milk, and other beverages.
PepsiCo made its first foray into Vietnam in 1994 by forming a joint venture with IBC International Beverages Company. The company's first two products to hit the Vietnamese market were Pepsi and 7 Up.
PepsiCo now owns and runs five factories across five localities in Vietnam, including Ho Chi Minh City, Dong Nai, Can Tho, Bac Ninh and Quang Nam.
By Thanh Van
Source: VIR
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