In December 2023, Savills Industrial Services successfully supported PepsiCo and Plaschem to reach an industrial land deal in Ha Nam Province. PepsiCo has expanded its manufacturing activities to the north of Viet Nam with an 80,000 sqm land plot within Dong Van I Expansion Industrial Park. The land will be used to establish a new production plant for PepsiCo’s snack food products.
Signing Ceremony between PepsiCo – Plaschem in Ha Nam
PepsiCo is a leading global food and beverage corporation with products in over 200 countries and territories. After almost 30 years in Viet Nam, PepsiCo now has factories in Ho Chi Minh, Can Tho, Quang Nam, Bac Ninh, Dong Nai, and Quang Nam. PepsiCo is committed to its production sites in Viet Nam and has selected Ha Nam as its next industrial base.
Savills industrial consultants helped PepsiCo to secure land in Dong Van I Expansion Industrial Park. The developer, Plastic Chemical Group Joint Stock Company (Plaschem), is a Vietnamese corporation specialising in industrial real estate developments. The industrial park offers synchronised infrastructure, suitable for manufacturing activities. Situated in Ha Nam, the southern gateway of Ha Noi, the park provides connectivity to key logistic links like the Cau Gie – Ninh Binh Expressway, National Road 1A and 38, Noi Bai International Airport, and Hai Phong Port, which all ensure the easy transportation of goods.
For PepsiCo, this industrial deal proves its continued commitment to strengthening manufacturing and agricultural activities in Viet Nam, especially in the northern region. For Ha Nam, this investment will create thousands of jobs, aiding economic growth and highlighting Ha Nam’s appeal as a destination for industrial investment.
“After almost a year of analysing the northern Viet Nam market for suitable options, stringent legal and technical due diligence, and negotiation, we are proud to announce this long-term land-lease transaction, which marks a very important milestone for both PepsiCo’s growing snack production and Plaschem JSC. The investment displays a continuing emergence of 2nd tier provinces as a hotspot for industrial FDI in northern Viet Nam. PepsiCo plans to develop high-tech agriculture and sustainable programs to apply regenerative agricultural methods, including digital technology to help save water and protect soil. Ha Nam Province is an appealing destination as it is only an hour to main consumer markets in Ha Noi with road transport infrastructure, favourable tax incentives and the potential for future expansion,” said Thomas Rooney, Senior Manager of Industrial Services at Savills Ha Noi and lead consultant for this long-term deal.
If you are looking for a suitable and cost-efficient industrial property, contact Savills Industrial Services for bespoke consultancy and solutions: https://industrial.savills.com.vn/contact/.
