PepsiCo has committed to investing $400 million in Vietnam to build two new plants. (Photo: iStock)
PepsiCo, the American snack and beverage giant with a 30-year presence in Vietnam, is expanding its operations with a $400 million investment in new factories located in Ha Nam and Long An province. PepsiCo currently operates five factories in Vietnam and plans to add two new facilities which will utilize solar and biomass energy and focus on reducing carbon emissions to advance the company's 2040 net-zero goal.
PepsiCo adopts green energy for new factories
The northern snack factory in Ha Nam Province will be located in the Dong Van I Industrial Park, covering approximately 80,000 square meters with an annual production capacity of around 20,000 tons. Scheduled for completion in the third quarter of 2025, it is expected to create 1,000 jobs across manufacturing, logistics, packaging, and agriculture.
PepsiCo plans to source ingredients through regenerative agriculture and digital technology, collaborating with Vietnam's Department of Agriculture and Rural Development and local farmer cooperatives to enhance crop yields while reducing carbon emissions and improving soil health.
The beverage factory in Long An Province, costing over $300 million, will be situated in the Huu Thanh Industrial Zone. This facility, a joint venture with Japan’s Suntory, will be the largest of its kind in the Asia-Pacific region, covering 200,000 square meters and producing 800 million liters annually. It will use renewable energy and employ eco-friendly "rPET" packaging materials.
Suntory PepsiCo Vietnam CEO Jahanzeb Khan highlighted that this factory represents the largest investment by Suntory PepsiCo in Vietnam, setting a new benchmark for production and sustainability.
PepsiCo Foods Vietnam held a groundbreaking ceremony for its new plant in Ha Nam province on August 4. (Photo: PepsiCo Foods Vietnam)
PepsiCo's 2023 emissions down 4% from baseline year
The company, which operates in over 200 countries and territories, including brands like Lay’s, Doritos, Quaker, and Pepsi, has a complex supply chain but is committed to its ESG goals. In 2020, PepsiCo joined RE100, pledging to use 100% renewable electricity by 2040. Last year, renewable energy met 80% of the company’s global direct electricity needs.
PepsiCo aims to achieve net-zero emissions by 2040, with plans to reduce Scope 1 and 2 emissions by 75% and Scope 3 emissions by over 40% by the end of 2030 compared to 2015 levels. In 2023, the company's greenhouse gas emissions were 58 million tons, a 4% reduction from 2015.
Source: The Investor, Reuters, PepsiCo
