Following the Memorandum of Understanding (MoU) signed between Nestlé and the Ministry of Agriculture and Environment on November 27th, Remy Ejel, CEO of Nestlé Zone AOA, shared insights into the company’s enduring vision for Vietnam and its dedication to collaborating with local farmers and communities. This partnership remains central to Nestlé’s operations within the country.
Nestlé’s Strategic Partnership with Vietnam
Nestlé Vietnam and the Ministry of Agriculture and Environment have formalised a strategic alliance. This collaboration aims to facilitate Vietnam’s transition towards a low-carbon, circular economy, aligning with global sustainability goals.
Assessing Nestlé’s Performance in Vietnam
Ejel expressed pride in Nestlé’s role in Vietnam’s growth narrative. He highlighted the company’s consistent expansion, fuelled by increasing consumer demand and significant investment opportunities.
Dual Role: Vietnam serves a dual purpose for Nestlé, functioning as both a crucial domestic market and an increasingly competitive export hub within ASEAN and globally. This includes not only finished products but also the growing contributions of skilled Vietnamese professionals supporting Nestlé operations worldwide.
* Recognition: Vietnam’s significance is fully acknowledged and valued across Zone AOA and within the broader Nestlé network. The company is committed to supporting the country’s ongoing growth and transformation.
Net-Zero Emissions Commitment
Nestlé has pledged to achieve net-zero emissions by 2050. Ejel elaborated on the company’s progress towards this ambitious target.
- Global Alignment: Nestlé is globally committed to the 2050 net-zero target, with Nestlé Vietnam playing a vital role in achieving this goal. This commitment aligns with Vietnam’s national priorities, contributing to the country’s broader sustainability initiatives.
- Agriculture at the Core: Recognizing agriculture as a major source of global emissions, Nestlé places it at the heart of its approach. Innovations in science and modern farming practices are enabling the company to help farmers significantly reduce their environmental impact.
- Roadmap and Progress: Nestlé’s net-zero roadmap is structured into distinct phases with measurable milestones. The company publishes its progress annually and is currently ahead of schedule.
- Research and Innovation: Research and innovation are fundamental to Nestlé’s progress. The company operates an extensive food research and development network, with environmental research as a key focus.
- Regenerative Agriculture: Nestlé is investing heavily in agricultural best practices, particularly regenerative agriculture. By sharing these techniques with farmers and supporting their implementation, the company is driving substantial and lasting environmental improvements.
Vietnam as a Key Investment Destination for Coffee
Ejel outlined several key factors that make Vietnam a prime investment destination for Nestlé’s global coffee operations.
- Strategic Location: Vietnam’s geographical position makes it an ideal hub for both regional and global supply chains.
- Skilled Workforce: The strength of Vietnam’s workforce, from farmers to factory workers to technical specialists, is a significant advantage. Their skills, dynamism, and eagerness to adopt new knowledge are crucial for the complex coffee industry.
- Processing Importance: While coffee discussions often focus on green beans, processing is equally vital. Vietnam plays a pivotal role in both sourcing and processing within Nestlé’s global ecosystem.
Shared Value Creation: Nestlé is committed to creating shared value through the NESCAFÉ Plan, collaborating with government agencies, universities, and farming communities to support farmers in raising productivity, improving livelihoods, and implementing environmentally friendly agricultural methods.
Vietnam as a Production and Export Hub
Nestlé’s decision to select Vietnam as a production and export hub is directly linked to the fundamental factors that attract and sustain investment.
- Favourable Ecosystem: Vietnam offers a highly favourable ecosystem for long-term growth, characterized by skilled talent, a committed workforce, policy consistency, and a supportive business environment.
- Investment and Commitment: Over the past decades, Nestlé has invested over $900 million in Vietnam. In the coffee sector alone, the company purchases approximately $700 million worth of Vietnamese coffee annually.
- Confidence in the Market: Close cooperation with government partners, local communities, and industry stakeholders reinforces Nestlé’s confidence in the Vietnamese market.
Navigating Global Economic Uncertainties
Addressing concerns about global economic and political uncertainties, Ejel emphasized Nestlé’s long-term resilience.
- Long-Term Vision: Nestlé’s model is designed for long-term resilience. With a history spanning nearly 160 years, the company has navigated numerous periods of global tension, crisis, and economic fluctuation, remaining anchored in a long-term vision.
- Contribution to Daily Life: Nestlé is proud of its longstanding journey in Vietnam and its contribution to the country’s development through products like Nescafé, KitKat, and Maggi, which have become integral to daily life for millions of Vietnamese households.
- Advancing Nutrition and Wellness: Nestlé’s ongoing priority is to advance nutrition, health, and wellness in ways that enhance consumers’ quality of life.
- Growth Engine in ASEAN: Vietnam’s role within ASEAN is expanding, with Nestlé Vietnam becoming a key growth engine in the region. The company is committed to being an active member of the communities where it operates.
- Collaboration with Farmers: Nestlé works closely with over 20,000 farmers, investing in research and development, farmer training, and support for regenerative agricultural practices that improve yields and reduce environmental impact.
- Confidence in Vietnam: Vietnam’s vibrant market, supportive policy environment, and strong network of partners reinforce Nestlé’s confidence in the country. By supporting farmers, improving productivity, and ensuring factory efficiency, the company contributes to long-term growth that endures beyond short-term volatility.
Ultimately, Vietnam holds a central and secure position in Nestlé’s long-term strategic roadmap, solidifying its importance as a key market and partner for the global food and beverage company.
