PepsiCo, a major player in the food and beverage industry, is making a significant investment in the Asian market with the construction of a new snack production facility in Vietnam. The company plans to invest around $90m in building the new facility, indicating their strong commitment to growing their presence in the region.
The new factory will be constructed in the Dong Van I Expanded Industrial Park in the Ha Nam province, covering an extensive area of 80,000 square metres. This strategic move is geared towards supplying more than 23,000 tonnes of PepsiCo snack brands annually to meet the demands of the Vietnamese and Cambodian markets, highlighting the company’s focus on expanding their market presence.
Construction of the facility is expected to commence at the beginning of 2024, with completion anticipated by the second half of 2025. This bold step to expand their production capacity in the region demonstrates PepsiCo’s forward-thinking approach to business expansion in the ever-evolving food and beverage industry.
In support of the new project, Nguyen Viet Ha, general manager of PepsiCo Foods in Vietnam, stated, “Despite the general economic difficulties after the Covid-19 pandemic, PepsiCo Foods Vietnam has made remarkable strides.” This emphasis on resilience and adaptability showcases the company’s readiness to navigate challenging global economic conditions.
Going beyond facility investments, PepsiCo is also looking to invest in sourcing ingredients from Ha Nam and northern provinces, expanding its potato contracting system with the adoption of “regenerative agro practice and digital technology.” This multi-pronged strategy underscores their commitment to sustainable and technologically advanced practices in the food and beverage business.
Additionally, PepsiCo is rolling out its Greenhouse accelerator programme in the Asia-Pacific region, aiming to support entrepreneurs promoting sustainability and the circular economy. The initiative provides successful applicants with financial support of $20,000 along with a business development programme, exemplifying PepsiCo’s dedication to fostering innovation and sustainability in the food and drink industry.
In line with their commitment to sustainable practices, PepsiCo’s focus on regenerative agro practices and digital technology, as well as the roll-out of their Greenhouse accelerator programme, reflects their proactive stance on tackling key industry challenges.
PepsiCo’s endeavors in Vietnam and the Asia-Pacific region signify their drive to remain at the forefront of the food and beverage industry, positioning themselves as industry leaders who are dedicated to innovation, sustainability, and consumer-centric growth.
