Credit: stock.adobe.com/Askar

Credit: stock.adobe.com/Askar

Vietnam: Suntory PepsiCo Opens $300 Million Vietnam Plant, Its Largest in Asia

Suntory PepsiCo, a joint venture between Japan's Suntory Beverage & Food Limited (STBFY) and PepsiCo (PEP), has opened its largest manufacturing facility in Asia in southern Vietnam, backed by a $300 million investment, as the company bets on rising incomes and shifting consumer habits to drive long-term beverage demand.

The new plant, located outside Ho Chi Minh City, spans an area equivalent to 25 football fields and will eventually reach an annual production capacity of 1.24 billion liters. It will produce seven beverages, including Pepsi, Aquafina and 7Up, and houses the company's first fully automated warehouse in Asia.

Vietnam ranks among PepsiCo's top 10 growth markets. Suntory PepsiCo Vietnam CEO Ashish Joshi said the company is seeing faster growth in no-sugar products, bottled water, sports drinks and functional beverages, even as demand for traditional carbonated drinks softens. According to the company, a single production line at the facility can turn out 120,000 cans an hour, with robotic vehicles handling the movement of products between production and storage areas. Suntory CEO Josuke Kimura said the investment is designed to get ahead of expected demand growth as Vietnam's economy continues to expand. The project is expected to create roughly 3,000 jobs across the local supply chain and support broader economic growth in the region. The company also said it is working to reduce sugar content across its beverage lineup, expand healthier product options, invest in recycling programs and increase its use of renewable energy, amid growing concerns over plastic waste and rising health awareness among consumers.

More articles