Nestlé aspires to turn Vietnam into world’s food and beverage supply center

Nestlé Vietnam Company has recently committed to invest US$132 million in doubling the processing capacity of high-quality coffee lines at Nestlé Tri An factory in the next two years.

The investment is targeted at turning the Vietnamese market into a center of production and supply of high-value coffee for domestic and international markets.

Nestlé Tri An factory is one of Nestlé's largest production plants in Vietnam and also one of the group's largest and most advanced coffee processing plants in the region.

In addition to the goal of producing high-quality coffee products to serve the needs of Vietnamese consumers, products manufactured at Nestlé Tri An have been exported to 25 markets, including difficult markets in Europe, Japan, Korea, USA and Australia.

According to Binu Jacob, General Director of Nestlé Vietnam, Vietnam can completely become a production center for packaged food and beverage products for the whole world thanks to a workforce of professionalism and high work spirit.

In addition, Nestlé Vietnam's operating system is currently among the most efficient and flexible in all markets in which Nestlé Group is present, he added.

Suan Win Lee, Supply Chain Director of Nestlé Vietnam, said that the business has recognized opportunities to expand coffee production in Vietnam in the coming years. Nestlé Group is currently the largest coffee buyer of Vietnam with a total annual purchase value of about 20-25% of Vietnam's total coffee output, which is equivalent to $700 million per year.

Nestlé Vietnam's coffee exports in the first three quarters of 2021 achieved double-digit growth over the same period last year, despite the negative impact of the fourth wave of the Covid-19 pandemic on the business activities, supply chain of Nestlé, and domestic and international partners.

Lee added that Vietnam is the largest producer of Robusta coffee and the second-largest coffee exporter in the world. The country also ranks high in productivity.

Therefore, improvement in marginal productivity, certification and sustainable agriculture should be prioritized in the upcoming time as demand for coffee has been and will continue to increase globally, he said.

Nestlé Vietnam has recently been awarded the certificate of "Prestigious exporter of 2020" by the Ministry of Industry and Trade. Among the enterprises receiving this prestigious certificate, Nestlé Vietnam is the only foreign enterprise with direct investment in Vietnam’s coffee industry.

Established in 1995, Nestlé Vietnam has continuously expanded investment and diversified products to serve the growing food and nutrition demand and improve the quality of life for people today and for generations to come. As of the present, Nestlé Vietnam has invested a total of $730 million in Vietnam, employs 2,200 people and operates four factories.

The company was voted among the Top 3 Sustainable Enterprises in 2020 in the manufacturing sector by the Vietnam Business Council for Sustainable Development under the Vietnam Chamber of Commerce and Industry. Last year, Nestlé Vietnam was lauded by the Ministry of Finance for making significant contributions to Vietnam's state coffers.