Tetra Pak Doubles Down on Southeast Asia with €97m Vietnam Plant Expansion

 

Tetra Pak inaugurated its second aseptic carton packaging production line at its Binh Duong facility in Vietnam on Thursday, marking a €97 million investment that positions the Swedish packaging multinational at the centre of Southeast Asia's rapidly expanding food and beverage sector.

 

The expansion more than doubles the plant's production capacity to over 30 billion packs annually and adds capability for 15 additional packaging formats.

 

This enhancement establishes the facility as one of the region's most advanced aseptic carton packaging operations and brings the total investment in Vietnam to €217 million since the plant opened in 2019.

 

The facility will supply key regional markets across Vietnam, Thailand, Malaysia, Singapore, Indonesia, the Philippines, Australia, and New Zealand.

 

With over 55% of production dedicated to domestic use, the plant will significantly strengthen Vietnam's packaging self-sufficiency and support its food and beverage sector.
 

 

 

Strategic Regional Manufacturing Network

The Vietnam expansion forms part of Tetra Pak's broader Asia Pacific manufacturing strategy, which includes facilities across key markets.

 

The company operates 38 factories worldwide, with significant operations in India's Chakan facility in Maharashtra, which can produce up to 32 billion packages annually, and a carton converting factory in Jeddah, Saudi Arabia, which exports to 24 countries across the Middle East, Europe and Asia.

 

Beyond Vietnam, Tetra Pak has established manufacturing presence in Thailand, where it operates a facility in Rayong focused on closures production, and maintains distribution centres in Indonesia to serve the broader Southeast Asian market.

 

 

 

 

"Today is a commitment to the customers and communities we serve in Vietnam and across Asia Pacific," said Adolfo Orive, President and CEO of Tetra Pak. "By expanding our capabilities at Binh Duong, we're helping food producers meet the needs of modern consumers with new, innovative and sustainable packaging solutions."

 

The investment reflects Tetra Pak's confidence in Vietnam's strategic importance.

 

"Six years after its first phase opening, this factory has become one of our top factories in the world," Orive stated. "It's delivered the best quality and efficiency in a very short time."

 

 

 

Market Dynamics Drive Investment

The investment comes as the Asia Pacific food and beverage market presents compelling growth prospects, valued at $667 billion in 2023 and projected to reach $900 billion by 2028.

 

This growth trajectory has prompted Tetra Pak to position Vietnam as its primary converting hub for Southeast Asian markets, including Thailand, Malaysia, Indonesia, Singapore, the Philippines, Australia, and New Zealand.

 

The expanded facility will serve more than 689 customers across the Asia Pacific region, with half of its production destined for international markets.

 

The plant has achieved World Class Manufacturing standards and holds LEED Version 4 Gold certification, incorporating AI-assisted quality control systems.

 

 

Innovation and Product Development Focus

Ratanasiri Tilokskulchai, Managing Director of Tetra Pak (Thailand) Limited, highlighted the strategic importance of the expansion for regional customers: "For our customers in Thailand, this means increasing access to innovative portfolio, particularly in response to the growth in plant-based and coconut-based products, as well as faster time-to-market."

 

 

The company has complemented its manufacturing expansion with innovation infrastructure, inaugurating a Customer Innovation Centre in Thailand in May 2025.

 

Looking ahead, Tetra Pak plans to establish a product development centre in Rayong, Thailand, scheduled for launch in the first quarter of 2026.

 

"We use Swedish technology, but it's all produced by Vietnamese people," Orive highlighted, emphasising the company's commitment to local talent development across the facility's 350-strong workforce.

 

 

 

 

Diversification into New Categories

Beyond traditional dairy and juice packaging, Tetra Pak is expanding into emerging categories including coffee, iced tea, and agricultural products.

 

The company recently launched its first corn-packing line in Vietnam, responding to consumer demand for diverse product offerings whilst supporting the country's agricultural sector.

 

"We are entering new categories like coffee, iced tea, and even packing corn," Orive revealed, noting how the expansion aligns with consumer preferences for products that prioritise food safety and quality.

 

This diversification strategy aligns with demographic trends across the region, particularly Vietnam's young population with an average age of 33 years and high technology adoption rates, creating favourable conditions for packaging innovation.

 

 

Sustainability and Technology Integration

The Binh Duong facility exemplifies Tetra Pak's commitment to sustainable manufacturing, with 70% of its packaging materials sourced from renewable resources.

 

The plant operates continuous improvement programmes aimed at reducing energy consumption, waste, and water usage.

 

Advanced manufacturing technology includes some of the world's fastest packing machines, capable of processing 40,000 packs per hour, along with QR code integration and digitalisation features for enhanced traceability throughout the supply chain.

 

Dilip Bhave, Factory Director of Tetra Pak Binh Duong, emphasised the facility's operational excellence: "The dedication and hard work of our team at this factory have been instrumental in achieving such recognition. It's a testament to our commitment to producing the highest quality products and ensuring the continuous development of our people, processes, and technology."

 

 

Regional Competition and Market Position

As a privately-owned company, Tetra Pak's long-term investment approach enables sustained commitment to regional growth despite economic uncertainties.

 

"That's why we're heavily investing in Thailand, Vietnam, and Indonesia," Orive explained, citing the region's high growth potential and consumer demand for quality food safety solutions.

 

The company competes primarily with Swiss manufacturer SIG Combibloc in the global market, with total sales of €11.5 billion recorded in 2019.

 

The Vietnam expansion reinforces Tetra Pak's manufacturing resilience, demonstrated during the COVID-19 pandemic when the facility maintained continuous operations to ensure food safety and supply chain reliability across the region.

 

 

Future Outlook

With the Southeast Asian market continuing its dynamic growth trajectory, Tetra Pak's expanded Vietnam operations position the company to capitalise on increasing consumer demand for convenient, safe, and sustainable packaging solutions.

 

The investment underscores the region's strategic importance in the company's global manufacturing network, particularly as plant-based products and premium beverage categories gain market traction.

 

"The basic need of food will always remain, and that gives us a strong foundation to continue doing good in the world," Orive asserted, reflecting the company's long-term perspective despite global economic uncertainties.

 

 

He reinforced Tetra Pak's core mission: "Our commitment is to make food safe and available everywhere. This has been our mission for over 75 years, and we will continue to do so with the utmost responsibility."

 

The company's commitment to remaining privately owned provides flexibility for continued long-term investment in the region, with potential for further expansion contingent on market development, particularly in high-growth markets such as Malaysia and Indonesia.

 

Tetra Pak, founded in 1952, is the world's leading food processing and packaging solutions company, operating across more than 170 countries with a mission to make food safe and available everywhere.