Nestlé Vietnam boosts investment, enhances value of Vietnam’s export products
Nestlé Vietnam boosts investment, enhances value of Vietnam’s export products
Seeking to transform Vietnam into a production and supply hub of high-value coffee for domestic and international markets, Nestlé Vietnam has been investing in intensive processing technologies and developing sustainable raw materials. The company operates four factories and two distribution centers with more than 2,000 employees in Dong Nai and Hung Yen provinces.
Nestlé Vietnam exports intensive processed coffee products to many markets |
In 2022, Nestlé Vietnam put into operation additional production lines for high-quality coffee exports to discerning markets, such as Japan and the US. This is part of an additional investment of US$132 million to double the processing capacity of premium coffee lines at Nestlé Tri An factory in Dong Nai Province. The products made at the factory are expected to export to more than 25 countries around the world, including demanding markets in Europe, Japan, the Republic of Korea, the US and Australia.
Binu Jacob, managing director of Nestlé Vietnam, said that the Vietnamese market can become a production centre for packaged F&B products for the whole world because of the country's skilled workforce and great work ethics.
"Nestlé Vietnam is recognized as one of the most efficient and flexible operating systems in all markets where Nestlé Group is present," he added.
Nestlé Vietnam not only continues to improve the value of Vietnamese agricultural products, especially coffee, it also increases the export of “Made in Vietnam” goods to the region and the world.
David Rennie (right) visits a coffee garden applying the regenerative agriculture model of the NESCAFÉ Plan project in Vietnam |
In addition to processing and increasing the value of Vietnamese coffee beans, Nestlé is currently also the largest coffee buyer with a total annual purchase value of about 20 to 25 percent of Vietnam’s total coffee output, which is equivalent to US$700 million per year.
Nestlé Vietnam has been pioneering regenerative agriculture through the NESCAFÉ Plan project |
Improving coffee bean quality
A sustainable coffee development project called NESCAFÉ Plan has been implemented since 2011 and has contributed to completing the value chain in coffee production from farmers to consumers.
Nestlé Group recently said it will invest more than one billion Swiss francs in NESCAFÉ Plan 2030 on a global scale. NESCAFÉ Plan not also brings about sustainable welfare for farmers, but also aims to become a “lighthouse” in regenerative and sustainable agriculture in Vietnam.
“Vietnam is an important growth driver in the Southeast Asia region for the Group. We see the potential in Vietnam’s future as a global and regional manufacturing hub and we will continue to expand our sustainable investments there, particularly in the coffee sector,” said David Rennie, Deputy Executive Vice President and Head of Nestlé Coffee Brands.
“Vietnam’s target to earn US$6 billion from coffee exports will be unachievable if the country only increases coffee farms. I think that in the years to come, coffee volume cannot be increased forever but the value of coffee. The more we develop sustainable agriculture, the higher the coffee prices. As a result, we will pursue the dual goals of NESCAFÉ Plan of the past 12 years,” David said.
| In 2022, Nestlé Vietnam was named in Top 1 the most sustainable business in Vietnam’s manufacturing sector by the Vietnam Business Council for Sustainable Development (VBCSD) of the Vietnam Chamber of Commerce and Industry (VCCI). The company was also awarded the certificate of “Prestigious export enterprise in 2020” by the Ministry of Industry and Trade. |
