Nestlé aims to transform Vietnam into world's food and beverage supply hub

Nestlé Vietnam has been steadily growing its role in the global group's supply chain

Nestlé Vietnam has announced an extra $132 million investment in its Nestlé Tri An factory in the southern province of Dong Nai early last month to increase its processing capacity of high-quality coffee lines. The investment aims to transform the Vietnamese market into a hub for producing and supplying high-value coffee for domestic and international markets.

Binu Jacob, managing director of Nestlé Vietnam, said that the Vietnamese market can become a production centre for packaged F&B products for the whole world because of the country's skilled workforce and great work ethics.

"Nestlé Vietnam is recognised as one of the most efficient and flexible operating systems in all markets where Nestlé Group is present," he added.

He added that Nestlé Tri An factory is one of Nestlé's largest production plants in Vietnam and also one of the group's largest and most modern coffee processing plants in the region. With a view to producing high-quality coffee products to serve the needs of Vietnamese consumers, the products made at Nestlé Tri An factory are exported to more than 25 countries around the world.

"The new investment in this coffee processing plant will help Nestlé Vietnam produce a wide range of products. With advanced production lines, equipment, and technology, Nestlé Vietnam continues to improve the value of Vietnamese agricultural products, especially coffee products, and at the same time increase the exports of 'Made in Vietnam' products to the region and the world," he noted.

Suan Win Lee, supply chain director of Nestlé Vietnam, said that the company has recognised opportunities to expand coffee production in Vietnam in the coming years. Nestlé is currently the largest coffee buyer with a total annual purchase value of about 20-25 per cent of Vietnam's total coffee output, which is equivalent to $700 million per year.

In addition, Nestlé products made in Vietnam are sold to over 25 countries around the world, including high-demand areas such as Europe, Japan, South Korea, the US, and Australia.

Nestlé Vietnam is one of the most efficient and flexible operating systems in the global Nestlé Group

In the first three quarters of 2021, Nestlé Vietnam has achieved double-digit growth of its coffee exports compared to the same period last year. This is a very positive result given that the fourth wave of the pandemic has affected the business activities and supply chains of Nestlé and its domestic and international partners.

“Vietnam is the world's second-largest exporter of Robusta coffee. Vietnam also ranks high in productivity. Therefore, in the near term, Vietnam should pay more attention to improvements in productivity, certification, and sustainable agriculture practices to meet the rising demand for coffee globally,” said Suan Win Lee.

Recently, Nestlé Vietnam has been awared the Prestigious Exporter of 2020 certificate by the Ministry of Industry and Trade. Nestlé Vietnam is the only foreign enterprise in the coffee industry recognised by the ministry.

Established in 1995, Nestlé Vietnam has continuously expanded investment and diversified products to serve the growing food and nutrition demand and improve quality of life for people today and for generations to come. As of present, Nestlé Vietnam has invested a total $730 million in Vietnam, employs 2,200 people and operates four factories.

The company was voted among the Top 3 Sustainable Enterprises in 2020 in the manufacturing sector by the Vietnam Business Council for Sustainable Development under the Vietnam Chamber of Commerce and Industry. Last year, Nestlé Vietnam was lauded by the Ministry of Finance for making significant contributions to Vietnam's state coffers.