PepsiCo announces $400 million Investment for two new plants in Vietnam

PepsiCo Vietnam investment: US-based food and beverage giant PepsiCo Inc. has unveiled plans to inject an additional $400 million into Vietnam's economy, earmarked for the construction of two new manufacturing plants fueled by renewable energy sources, according to the Vietnamese government's announcement on Friday.

The commitment from PepsiCo comes as part of a visit by delegations representing over 60 US enterprises, including Suntory PepsiCo Vietnam Beverage, during a three-day work trip to Vietnam this week.

One of the plants, dedicated to beverage manufacturing, will be situated in the southern Long An province, requiring an investment exceeding $300 million. The second facility, focusing on food processing operations, will be located in the northern Ha Nam province and will entail an investment of $90 million, the Vietnamese government disclosed.

While the report did not specify the exact timeline for the commissioning of the two factories, last year PepsiCo disclosed its receipt of an investment certificate for the Ha Nam facility. Initial projections suggested that the plant would commence operations in the third quarter of 2025.

PepsiCo's footprint in Vietnam dates back to 1994, with the company currently operating five factories across the country. This latest investment underscores the company's commitment to bolstering its presence in the Vietnamese market and expanding its manufacturing capabilities to meet growing demand.

The move also aligns with PepsiCo's broader sustainability goals, as the new plants will be powered by renewable energy sources, reflecting the company's commitment to environmental stewardship and responsible business practices.

Investments of this scale not only signify confidence in Vietnam's economic growth trajectory but also underscore the country's attractiveness as a key destination for multinational corporations seeking to capitalise on the region's burgeoning consumer market and favorable business environment.

(With Reuters inputs.)