Suntory Pepsico Vietnam – pioneering in public–private partnership for sustainable development in Việt Nam

Jahanzeb Khan, General Director and CEO of Suntory PepsiCo Vietnam, shared efforts being made to address environmental and social challenges through strategic partnerships and innovative models. — Photo courtesy of the firm

The Ministry of Agriculture and Rural Development (MARD) and Suntory PepsiCo Vietnam have signed a memorandum of understanding for sustainable forest development, towards water replenishment and carbon offset.

Jahanzeb Khan, General Director and CEO of Suntory Pepsico Vietnam, talks about the company’s efforts in promoting sustainable development initiatives in Việt Nam.

Can you share the sustainability strategy of Suntory PepsiCo Vietnam?

Guided by the core value “Growing for good”, Suntory PepsiCo Vietnam has continuously strived to build and promote initiatives aiming at giving back to nature, communities and society, while delivering high quality products to our consumers. Our vision extends beyond being a leading market beverage company to becoming a trusted partner of the Vietnamese Government in advancing sustainability initiatives.

Our sustainability strategy focuses on six areas that benefit both the planet and people. First, we aim to create positive water impacts by addressing the water challenges in Việt Nam through reducing water usage in our production, implementing reforestation programme to cultivate and replenish water back to nature, and educating communities about water conservation. In line with the government’s call to action against climate change, we are committed to minimising greenhouse gas emissions. All five of our production plants now have moved out of fossil fuels, installing biomass steaming systems to reduce our carbon footprint.

We go beyond pushing for sustainable packaging innovations to reduce plastic waste and promote circular economy. This includes being the first beverage company in Việt Nam to introduce product with packaging made from 100 per cent recycled PET – Pepsi, and the first tea bottle made from 100 per cent recycled PET, the lightest water bottle in our global system – Aquafina. Addressing health and wellness concerns is another key focus for us, where we continuously innovate to offer a wide range of healthier choices for our consumers.

Additionally, we value diversity, equity and inclusion among our staff, and enriching the lives of the communities where we operate, which aligns with the government’s efforts to foster inclusive growth, equal opportunities, and overall community development goals.

The “Mizuiku – I Love Clean Water” programme aims to raise primary pupils’ awareness of water conservation and protection, initiated in 2015. — Photo courtesy of the firm

What makes the reforestation programme between MARD and Suntory PepsiCo Vietnam unique compared to other initiatives?

Forests are incredibly valuable to Việt Nam’s economy, ecology and biodiversity. We initiated our tree plantation programme in 2021, but we sought to level up its impact. Recognising this, we believe that the partnership we are establishing with MARD will bring the impact of the programme to the new height with significant progress.  

Our focus isn’t solely on reforestation, it’s about supporting reforestation efforts in a way that extends benefits to local communities by providing them with sustainable livelihoods. By integrating water replenishment and carbon offset initiatives, we aim to support the Vietnamese Government’s target of achieving net-zero emissions by 2050.

Suntory PepsiCo Vietnam is proud to be one of the first companies to engage in a public-private partnership with MARD in sustainable forest development. We hope to pave the way and inspire other companies to join in creating value for Việt Nam’s forests and developing new and effective models in forest management and protection.

General Director and CEO of Suntory PepsiCo Vietnam, Jahanzeb Khan, and Director of the Forestry Department, Trần Quang Bảo, signed the Memorandum of Understanding in sustainable forest development, towards water replenishment and carbon offset. — Photo courtesy of the firm

Can you share more about areas of collaborations between both parties?

Our co-operation includes several key activities. One of these is reforestation, which links to improving local livelihoods, conserving and replenishing water resources, enhancing carbon offsets, and protecting the environment. Another important initiative is the Forestry Semester Programme, a forest experience programme designed to educate participants about water resources and biodiversity, fostering a love for forests and water among students and national park visitors. Additionally, the National Forest Passport Initiative aims to develop the multi-use value of forests, promoting ecological and tourism value by encouraging people to explore and experience forests, thereby fostering an awareness of forest protection across 34 national parks.

Through these efforts, we aim to make Việt Nam greener and more sustainable, working hand-in-hand with the community and government to achieve our shared environmental goals.

What are Suntory PepsiCo Vietnam’s expectations for this public-private partnership in terms of its contributions to water conservation and carbon offsets?

The challenges of sustainable development are too vast to be addressed by a single sector or organisation. They require collaboration of both the public and private sectors. Driven by a shared vision of sustainable development and a commitment to making positive impacts on the environment and community, Suntory PepsiCo Vietnam has emerged as a pioneer in public-private partnership.

The programme aims to plant and enrich nearly 250 hectares of forests in upstream and protected areas across the country, including Lào Cai, Yên Bái, and Tuyên Quang in the Northern region; Nghệ An and Phú Yên in the Central region; and Cà Mau, Long An and Bình Phước in the Southern region. These forests will include large timber trees, indigenous species, and medicinal plants to improve local livelihoods.

Our goal is to conserve and regenerate groundwater resources, replenishing back into nature more water than we use in our production processes by 2050. Additionally, we seek to offset carbon emissions, mitigate climate change impacts, and support the Vietnamese Government’s net-zero greenhouse gas emissions goal by 2050, as outlined at COP26. Beyond ecosystem restoration, we are dedicated to creating livelihoods and employment opportunities for 500 local residents by 2050.

Could you share more about the company’s strategy to sustain business growth in Việt Nam?

Suntory PepsiCo has been committed to Việt Nam for over three decades, with a growth strategy closely tied to the country’s sustainable development.

Starting with our first plant in Hóc Môn, HCM City, Suntory PepsiCo has expanded nationwide and we now operate five plants and five offices across the country, providing jobs for over 3,000 direct employees and thousands of indirect workers.

Việt Nam is a key market in the Asia-Pacific region. In early April, we broke ground on our sixth plant in the country in Long An, marking our largest investment in Việt Nam to date. This plant will be our largest and most modern in the Asia-Pacific region, featuring automation technology and is expected to operate on renewable energy. This not only strengthens our leading position but also reaffirms our strong commitment to and investment in Việt Nam.