Hold up Starbucks, the Swiss want in too. Familiar food and drink maker Nestle just announced that it’s pouring $270 million into building another coffee factory in Vietnam.
According to the Wall Street Journal, the factory will be built in Dong Nai province, in southeast Vietnam. Nestle plans to source most of its beans from local farmers in a measure to cut cost, engage the local community and support sustainable farming. Additionally, the new factory, which Nestle hopes to be fully operational by 2013 (the same year that Starbucks wants a visible presence in Vietnam), would create around 200 immediate jobs and continue to contract with local farmers in the long run. Nestle currently operates four factories in Vietnam and employs 1500 people nationwide.
You might say Starbucks and Nestle aren’t exact competition in Vietnam–Starbucks wants to build demand in the Vietnamese consumer market, while Nestle is tapping into Vietnamese resources—but there’s bound to be overlap as Nestle rolls out its products too.
Regardless, with more multinationals investing in Vietnam, that’s +2 for capitalism?
come on Trung Nguyen, be ready to fight with those huge competittors. Plssss dun get lost in ur local market!!!
Vietnam need to regulate those big players. There are problems with tea re-importers already which keep the price high as they buy a big amount of tea and sell to foreign market and re-import tea. The local brands aren’t able to compete with them and aren’t able to afford the high tea prices which is offered by the big MNC. Don’t make the same mistake with coffee. Vietnam is the top coffee exporter but don’t forget the local demand.
I used to work for Nestle when I was in Vietnam. This is a good company with the logo “GOOD FOOD, GOOD LIFE”.