U.S beverage giant PepsiCo will invest some $390 million to build two factories in the northern province of Ha Nam and the southern province of Long An, both powered by renewable energy.
The information was revealed by a company representative on Thursday during a meeting between Vietnamese Prime Minister Pham Minh Chinh and a business delegation organized by the U.S-ASEAN Business Council (USABC) and led by its president & CEO Ted Osius.
PepsiCo’s food factory in Ha Nam will cost $90 million and its Long An beverage factory has a price tag of $300 million, said the representative.
In December 2023, PepsiCo Foods Vietnam received an investment certificate for the Ha Nam facility.
The eight-hectare project in the Dong Van I Industrial Park is set to deploy in 2024, marking the 30th year of PepsiCo in Vietnam. It is scheduled to enter operation in the third quarter of 2025.
PepsiCo entered the Vietnamese market by forming a joint venture with IBC International Beverages Company in 1994. At that time, the company launched its first two products, Pepsi and 7 Up.
Currently, PepsiCo runs five factories across Vietnam, including Ho Chi Minh City, Dong Nai, Can Tho, Quang Nam, and Bac Ninh.
At the meeting, Osius, who is a former U.S. Ambassador to Vietnam, and representatives of more than 60 American investment funds and businesses congratulated Vietnam on its socio-economic development achievements in recent years, and appreciated its increasingly improved investment environment.
The USABC president also thanked the Vietnamese government for supporting and accompanying foreign-invested enterprises, including U.S. ones. On behalf of American firms, he committed continued strong investments in Vietnam in the fields of science and technology, electronics, aviation, electric vehicles, logistics, energy, healthcare, finance, e-commerce, food, and tourism.
The U.S. business community took note when Fitch Ratings’ upgraded Vietnam's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'BB+', from 'BB' in late 2023, and was pleased when the two countries upgraded relations to a comprehensive strategic partnership, he said.
They assess that Vietnam is increasingly asserting its role as a critical production hub and an important part of the global supply chain, added Ted Osius.