Throughout 30 years, Suntory PepsiCo Vietnam has grown from an early FDI company into a leader in the beverage industry in the country. On the occasion of the company’s 30th anniversary, CEO and General Director Jahanzeb Khan remarks on company evolution to lead in both business and sustainability, strengthening its commitment to growing for good and contributing meaningfully to Vietnam’s progress.
The Saigon Times: As the company is celebrating its 30th anniversary in Vietnam, what defining milestones demonstrate the company’s commitment to growing alongside Vietnam?
Jahanzeb Khan: 2024 marks a significant milestone as Suntory PepsiCo Vietnam celebrates 30 years of our presence and operations in the country. Since Vietnam’s economic opening in 1994, we were among the first FDI companies, with Pepsi being one of the first internationally branded products locally manufactured in Vietnam.
Over these 30 years, we have grown alongside the nation’s remarkable development. We have evolved to lead the beverage industry, and maintaining this leadership for over two decades. Vietnam is among the top priority markets where we continuously introduce breakthrough products, making an evolution to our product portfolio from the first Pepsi and 7up to 13 diverse brands serving millions of Vietnamese consumers annually. This has also been a hub for innovation, where products like Sting, Revive Salty Lemon — researched and developed based on Vietnamese consumer insights—which have grown globally. Through continuous innovations, we marked a significant milestone in 2022, reaching 1 billion US dollars, notably overcoming the challenges post Covid-19.
We are reinforcing our long-term commitment to Vietnam through the extensive operations in six plants spanning nationwide, located in Can Tho, Dong Nai, Hoc Mon (HCMC), Quang Nam, Bac Ninh, and the upcoming Long An plant. The Long An plant, set to begin construction, is a project equipped with technology and a focus on sustainability. With a production capacity of up to 800 million liters annually, it is not only the largest facility in Asia-Pacific but also represents our most significant investment in Vietnam to date.
Alongside developing and leading the business, Suntory PepsiCo has been a pioneer in sustainability programs and initiatives to give back to society. We remain as a trusted partner in Vietnam’s progress—driving economic growth while laying the foundation for a more sustainable future.
What has been the key to sustaining a leading position in a competitive beverage market?
The Vietnamese beverage market remains intensely competitive, with over 300 beverage brands present in the country, with an influx of 20-30 new products annually across categories like soft drinks, energy drinks, and tea. Consumer trends also shift quickly, creating challenges for companies to innovate and adapt swiftly.
In this dynamic environment, we remain steadfast in putting consumers’ diverse and evolving needs at the core of our strategy, innovating and offering a wide range of products. Continuous innovation is embedded in every aspect of our operations and enables us to be the first mover in many areas.
Product innovation has been a key driver, as the demand for healthier beverage choices grows. Since 2021 we have responded by expanding our portfolio to include sugar-free, low sugar-sugar, and vitamin-added drinks. These products not only cater to the increasing demand for healthier choices but also reflect our ongoing commitment to improving the lives of our consumers.
Innovation extends beyond just products; it also applies to our sustainability strategy. Suntory PepsiCo is the pioneer in sustainable packaging through proactively promoting recycled PET, and reducing the amount of virgin plastic used. We are the first beverage company in Vietnam to introduce 100% recycled PET (rPET) bottles. In 2022, we launched the rPET Pepsi bottle, followed by the Oolong TEA+ in 2023. In reducing the virgin plastic usage, we launch the lightest bottled water in the global system – Aquafina. With these initiatives, the company reduces an average of over 5,000 tons of plastic annually, equivalent to a reduction of 23,000 tons of carbon emissions into the environment.
None of this would have been possible without the people behind Suntory PepsiCo Vietnam. From the beginnings of 100 employees 30 years ago, we’ve grown into a strong team of over 2,800 individuals, with 99% of them being Vietnamese. This growth highlights our belief that investing in talent is the foundation of our success. From the factory floor to the sales networks across the country, every single team member has played a role in our achievements. They are the heartbeat of this company and the driving force behind our continued leadership in the market.
Above all, our unwavering commitment to investing in Vietnam has been pivotal to our success. Over the past decades, we have consistently expanded operations, we have created thousands of jobs, directly and indirectly. We have become one of the top taxpayers in the country for eight consecutive years, significantly contributing to the national budget. We have been recognized as one of the most reputable beverage companies in Vietnam for the past seven years.
While Suntory PepsiCo Vietnam leads in the beverage industry, how does the company contribute to Vietnam’s development?
Alongside growing the business, Suntory PepsiCo Vietnam has been a pioneer in sustainability programs and initiatives, aligned with our core value of “Giving back to society”.
In the last 30 years, we have grown with Vietnam in addressing critical challenges about environment, social and community, in line with the Vietnamese Government’s commitment toward sustainability. As Vietnam transitions to a new phase of development, we have also evolved our sustainability strategy. We focus on six core pillars, aiming to create positive impacts for people and the planet.
As a company sustained by the gift of water, we adopt a two-fold approach to ensure the water sustainability in the present and future. We optimize water use within our plants through water circularity and replenishing water back to nature through program planting forest in watershed areas nationwide in public – private partnership with the Ministry of Agriculture and Rural Development. We have not only secured the water sustainability in the present, but also implementing water education program named “Mizuiku – I love clean water” in strategic partnership with the Ministry of Education and Training to nurture the awareness and love among pupils nationwide toward water conservation.
Aiming toward reducing greenhouse gas emissions in operations and across value chain, we have explored technology and transition from fossil fuel to renewable energy across our plants by installing biomass in 5 out of 5 plants in Vietnam.
Creating positive impact is deeply embedded in our company’s culture. Through initiatives like Helping Hands – an employee driven charity program helping to build tens of happy schools nationwide to “Bring Tet Home” program – helping underprivileged people reunion during Tet occasion and, Golf Friendship Tournament – a shared values platform supporting pediatric cancer patients and education, those have strongly affirm our long-standing commitment to giving back to society.
As the leading beverage company, we recognize the ripple effect of our actions – how we influence our partners, inspire other businesses, even our consumers, and contribute to the broader efforts to build a more sustainable future. And we are proud that in this journey, we are able to work alongside the Government of Vietnam to scale up our impact, create shared values and inspire others to take action.
What is Suntory PepsiCo Vietnam’s vision for its development in the coming years?
Suntory PepsiCo has been committed to Vietnam for over three decades, with a growth strategy closely tied to the country’s sustainable development.
We understand that with our business’s leading position comes profound responsibility and impact. Our vision of “Being the leading beverage company by caring for a better Vietnam through every sip of joy” compels us to grow and transform in a way that benefits not only our company but also the world around us. We are committed to growing our business for good, delivering high quality products to our consumers in simultaneousness with empowering people, and “giving back to society” in meaningful ways.
