PepsiCo expands investment in Vietnam with $400 million for renewable energy-powered plants
PepsiCo Inc., a leading global food and beverage company, has announced a significant investment commitment of an additional $400 million in Vietnam. Newswire Reuters reported quoting a Vietnamese government release that the funds will be used to build two new manufacturing facilities powered by renewable energy sources in the Southeast Asian nation.
The Vietnamese government’s announcement on March 22 coincided with a three-day working visit to Vietnam by delegations of more than 60 U.S. enterprises, including Suntory PepsiCo Vietnam Beverage.
The investment will see the establishment of a beverage manufacturing plant in Long An province, located in the southern region of Vietnam, with a projected cost exceeding 300 million. Additionally, a food processing facility will be built in the northern province of a Nam province with an investment of $90 million, the Vietnamese government said, according to the Reuters report.
While the Vietnamese government’s report did not provide specific details on the commissioning timeline for the two factories, PepsiCo had previously revealed plans to commence operations at the Ha Nam facility in the third quarter of 2025, after securing an investment certificate late last year.
PepsiCo, a prominent player in the Vietnamese market since its entry in 1994, currently operates five factories across the country. The company’s decision to invest in renewable energy-powered plants aligns with its commitment to sustainable business practices and reducing its environmental footprint.
Meanwhile, PepsiCo disclosed that its India operations delivered an overall mid-single-digit organic revenue growth in 2023, reflecting the diverse performance across its product categories, as per a Mint report
The company highlighted the strong performance of its developing and emerging markets, with several countries recording impressive double-digit organic revenue growth. Among these markets were Mexico, Brazil, Egypt, Turkey, Poland, and Pakistan. Additionally, Saudi Arabia witnessed high-single-digit growth, while China and India reported mid-single-digit growth.
PepsiCo attributed its organic revenue growth in 2023 to notable marketplace results across many of its key markets, underscoring the company’s resilience and adaptability in diverse geographic regions.
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Published: 22 Mar 2024, 10:53 AM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.