Suntory PepsiCo breaks ground on its largest Asia-Pacific plant in Vietnam

April 22, 2024 | 08:53
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Suntory PepsiCo Vietnam has broken ground on its sixth plant in Vietnam. CEO and general director Jahanzeb Khan told VIR’s Bich Ngoc about the significance of the facility.
Suntory PepsiCo breaks ground on its largest Asia-Pacific plant in Vietnam

What is the importance of the Long An plant to Suntory PepsiCo’s development strategy in Vietnam?

Suntory PepsiCo breaks ground on its largest Asia-Pacific plant in Vietnam
CEO and general director Jahanzeb Khan

The groundbreaking of the Long An plant, based in Huu Thanh Industrial Zone, has essential meaning to us. This state-of-the-art facility will not only increase the capacity to meet the increasing needs of consumers, but also pave the way for our long-term growth, setting new benchmarks for productivity and sustainability.

With the expected total investment of more than $300 million, the 20-hectare plant will be the largest investment in our history of 30 years in Vietnam.

Upon completion, the plant is expected to have an annual capacity of 800 million litres, solidifying our leading position in Vietnam’s beverage market. It is also poised to become the largest and most cutting-edge facility in the Asia-Pacific region.

Why did Suntory PepsiCo choose Long An province to build its largest plant in the region?

Vietnam is among the top-priority markets for both Suntory and PepsiCo, and we firmly believe in the potential and development of Vietnam’s economy, as well as how the government has been creating the environment to attract investment for business to develop.

The Long An plant is a strong testament to our continued investment and long-term vision of sustainable development in the country.

Recently, we were glad to welcome CEO of Suntory Beverage and Food, Makiko Ono, and PepsiCo global CEO Ramon Laguarta to Vietnam. Their visit signified the importance of the Vietnamese market to our group.

The decision to establish this plant in the Mekong Delta province of Long An is no coincidence. We believe in the growth of Long An thanks to its strategic location, thriving industrial zones, skilled workforce, and favourable investment policies. The focus of Long An on attracting high-tech and sustainability investment aligns with our vision.

We choose to build our cutting-edge facility here with the commitment to contribute to the local economic growth, upskill for talent, and support Long An in reaching its strategic goals.

What makes the new plant in Long An special, especially regarding the operation’s sustainability standards?

Firstly, this is not just our sixth plant, but it is the most special plant we will have. The investment will strengthen our capability to serve Vietnamese people and bring more sips of joy to inspire brilliance of lives. Secondly, it will be our most efficient plant from a productivity standpoint.

We believe that sustainability is critical, and we are committed to helping the Vietnam government achieve its pledge to reach net-zero by 2050.

Guided by our vision of Growing for Good, we are dedicated to conducting business in a way that benefits both people and the planet. This plant is a strong demonstration of our sustainability goals and efforts. Powered by renewable energy, such as biomass and solar power, this cutting-edge facility is expected to significantly reduce greenhouse gas emissions in its operations.

This will be the house of products with packaging made from 100 per cent rPET, along with other initiatives to save natural resources in its production. This is our bold move towards realising the sustainability commitments of the government of Vietnam.

How do you evaluate the impact of the new factory on the development of the local community?

Long An’s growth strategy is to strengthen investment promotion to attract technology-advanced and large-scale industrial development projects and especially focuses on manufacturing projects applying green technologies towards sustainable development. Our plant project meets these criteria, and is expected to contribute greatly to the socioeconomic development of Long An province in the coming years.

Through 30 years operating in the country, we have been a trusted partner of the Vietnamese government in advancing the sustainability agenda as well as contributing to the communities where we operate in line with our value of giving back to society.

As a company sustained by the gifts of nature and water, we have relentlessly worked to achieve water sustainability by ensuring reforestation across 159ha in watershed areas as part of our Million Green Trees programme.

We are continuously reducing water usage across our production and value chains. We are educating almost half of a million students in Vietnam on water protection and conservation and to enhance access to clean water for millions of students and teachers through our Mizuiku initiative since 2015.

We have also presented clean water constructions to primary schools in Long An, helping to enhance access to clean water and improve the quality of facilities as part of a scheme called “Mizuiku – I love clean water”. Previously, in 2023, the company planted 6,000 trees in Duc Hoa district of Long An with local people.

In addition, we are proud to make efforts towards the circular economy, and are a founder member of the Packaging Recycling Organisation Vietnam. We are also the first beverage company in Vietnam to launch products with packaging made from 100 per cent rPET and bottled water with the lightest weight in the system globally. Our innovations have focused not only on today’s growth, but future sustainability.

With a three-decade operation in Vietnam, spanning from its first manufacturing facility in Hoc Mon district of Ho Chi Minh City, Suntory PepsiCo remains committed to continuously investing and expanding its footprint nationwide with five plants in Can Tho, Dong Nai, Ho Chi Minh City, Quang Nam, and Bac Ninh, complemented by six offices strategically dispersed across the country.

The company has grown to a top position in the beverage market, created jobs for nearly 3,000 direct employees and tens of thousands of indirect workers, and has been recognised among the top taxpayers, contributing to the state budget for multiple consecutive years.

Suntory Group and MoET take action to preserve water resources Suntory Group and MoET take action to preserve water resources

Suntory Group, Suntory PepsiCo and the Ministry of Education and Training (MoET), together with the Central Council of Ho Chi Minh Young Pioneer Organisation, hosted a ceremony for a clean-water initiative in Hanoi on March 20.

Suntory Group deepens sustainable footprint in Vietnam Suntory Group deepens sustainable footprint in Vietnam

The “Mizuiku – I love clean water” programme is an education initiative for nature and water unique to Suntory Group designed for the next generation to realise the beauty of nature, which has brought benefit to more than 2.6 million people at all ages across Vietnam after eight years. VIR’s Ha Thuy has an exclusive interview with Masaaki Fujiwara, chief sustainability officer of Suntory Group.

Suntory Pepsico begins construction of $300 million plant in Long An Suntory Pepsico begins construction of $300 million plant in Long An

Suntory PepsiCo Vietnam commenced construction of its sixth plant on April 8. The new plant is located in Huu Thanh Industrial Zone, Duc Hoa district, Long An province.

By Bich Ngoc

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