PepsiCo Inc. has announced an investment of $400 million to construct two new manufacturing plants in Vietnam, marking a significant expansion in the Southeast Asian country. These facilities, focusing on renewable energy use, include a beverage manufacturing plant in Long An province costing over $300 million and a food processing plant in Nam province with a $90 million investment. This initiative is part of PepsiCo's broader commitment to sustainable business practices and reducing its environmental impact.
The company's investment was revealed during a visit by a U.S. business delegation, including Suntory PepsiCo Vietnam Beverage, to Vietnam. While the specific timeline for the factories' commissioning was not detailed by the Vietnamese government, PepsiCo plans to begin operations at the Ha Nam facility by the third quarter of 2025. PepsiCo has been operating in Vietnam since 1994 and currently runs five factories in the country, with the new investments underscoring its long-term commitment to the Vietnamese market and sustainable manufacturing.
In addition to its Vietnamese expansion, PepsiCo's 2023 performance saw mid-single-digit organic revenue growth in its India operations, with strong performance in other developing and emerging markets. Countries like Mexico, Brazil, Egypt, Turkey, Poland, and Pakistan experienced double-digit organic revenue growth, while Saudi Arabia, China, and India reported significant growth as well. This growth reflects PepsiCo's successful adaptation and resilience across diverse global markets, contributing to its overall business performance.