Suntory PepsiCo Vietnam Beverage, a joint venture between Japan-based Suntory and U.S.-based PepsiCo, began building a $300-million factory in the southern Vietnam province of Long An on Monday.
Covering 20 hectares at the Huu Thanh Industrial Park, the project is among the biggest-ever foreign direct investment (FDI) projects in the province. It is set to be completely powered by renewable energy sources including biomass and solar power.
With an annual capacity of 800 million liters, Suntory Pepsico’s sixth project in Vietnam is set to become its biggest and most modern project in the Asia-Pacific region.
The factory will manufacture products packaged in fully recycled plastics, aiming to serve the nation’s sustainable growth aspiration, according to the firm.
An environmental impact report for the project prepared by the Ministry of Natural Resources and Environment (MoNRE) shows that the plant has an annual output of 796 million liters, all slated for domestic consumption. Its capacity includes 136.3 million liters of non-carbonated beverage, 424.1 million liters of carbonated drinks, and 235.6 million liters of drinking water.
Work on the project is scheduled for completion between the Q2/2024 and Q4/2025 and equipment installation is set to take place between Q3/2025 and Q1/2026. The factory is set to begin operations in Q1/2026.
In March 2024, PepsiCo said it would 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 food factory in Ha Nam and beverage factory in Long An will cost $90 million and $300 million.
In February 2023, Suntory PepsiCo Vietnam Beverage Company said it plans to invest $38.8 million more in its factory in the southern city of Can Tho to build new production lines for purified water and tea.