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 robust 30-year presence in Vietnam, is making headlines with its recent commitment to invest $400 million in the establishment of two new factories. These state-of-the-art facilities will be located in Ha Nam and Long An provinces, expanding PepsiCo’s footprint from its current five factories in the country. But this isn’t just about expanding capacity; it’s about embracing sustainability through the use of renewable energy solutions and aligning with the company’s ambitious 2040 net-zero emissions goal.
PepsiCo Embraces Green Energy
The new northern snack factory in Ha Nam Province is set to be a model of efficiency and environmental responsibility. Nestled in Dong Van I Industrial Park, this facility will span approximately 80,000 square meters with an impressive annual production capacity of around 20,000 tons. Scheduled for completion by the third quarter of 2025, the plant is expected to create around 1,000 new jobs across various sectors, including manufacturing, logistics, and agricultural partnerships.
PepsiCo plans to incorporate regenerative agriculture and digital technology, collaborating closely with Vietnam’s Department of Agriculture and Rural Development and local farmer cooperatives. This initiative aims to not only improve crop yields but also significantly reduce carbon emissions and bolster soil health, demonstrating PepsiCo’s commitment to sustainable sourcing.
Meanwhile, the second facility, a beverage factory in Long An Province, represents the company’s largest investment in Vietnam at over $300 million. Located in the Huu Thanh Industrial Zone, this factory—a joint venture with Japan’s Suntory—will be the largest of its kind in the Asia-Pacific region. Spanning 200,000 square meters, it aims to produce an astonishing 800 million liters annually while prioritizing renewable energy and eco-friendly “rPET” packaging materials.
Jahanzeb Khan, CEO of Suntory PepsiCo Vietnam, emphasized that this new facility isn’t just an investment; it sets a new benchmark in production and sustainability for the region. It reflects a profound shift towards prioritizing environmental initiatives while meeting consumer demand.
PepsiCo Foods Vietnam held a groundbreaking ceremony for its new plant in Ha Nam province on August 4. (Photo: PepsiCo Foods Vietnam)
Recent Emission Trends at PepsiCo
Operating in over 200 countries and territories and home to beloved brands like Lay’s, Doritos, Quaker, and Pepsi, PepsiCo has a complex supply chain that it is actively working to overhaul. The company’s commitment to environmental, social, and governance (ESG) goals has never been clearer. In 2020, PepsiCo joined RE100, vowing to rely on 100% renewable electricity by 2040. As of last year, a commendable 80% of the company’s global direct electricity needs were met through renewable sources.
PepsiCo’s net-zero emissions goal by 2040 outlines a clear path forward. The company’s plans include reducing Scope 1 and Scope 2 emissions by a staggering 75%, while aiming for over a 40% reduction in Scope 3 emissions by the end of 2030 compared to 2015 levels. In 2023, PepsiCo reported greenhouse gas emissions at 58 million tons, marking a 4% decrease from its baseline year in 2015—a promising step in the right direction.
For more information, please refer to The Investor, Reuters, and PepsiCo.