HÀ NỘI — As the signing of a Memorandum of Understanding between Nestlé Vietnam and the Ministry of Agriculture and Environment marked a defining moment in the company’s commitment to Việt Nam’s sustainable development, it also signalled a new chapter in how global businesses can help shape the country's green transition.

The agreement formalises collaboration on sustainable agriculture, climate action, and capacity building – strengthening Nestlé’s role as a strategic development partner supporting the country’s socio-economic and environmental goals.

“Today’s MoU reflects our shared commitment to creating long-term value for communities and the nation,” said Remy Ejel, CEO of Nestlé Zone Asia, Oceania and Africa.

“It allows us to integrate our business objectives with Việt Nam’s socio-economic priorities, from sustainable farming to climate action, and to support the country’s transition towards a low-carbon, circular economy.”

Việt Nam is a fast-growing market that plays a dual role for Nestlé: as a vibrant local consumer base and as a regional hub for manufacturing and exports.

“The local market is very important to us,” Ejel said. “Việt Nam is becoming a strong regional hub – for exports, skilled talent, and innovation. We see immense potential for long-term investment, particularly in the coffee sector, which is central to our operations.”

Over the past decades, Nestlé has invested more than US$900 million in Việt Nam, spanning production facilities, research initiatives, and multilateral partnerships.

Coffee illustrates this strategy in action: every year, Nestlé purchases nearly $700 million worth of Vietnamese coffee for processing and export, making Việt Nam a pivotal node in its global supply chain.

“Việt Nam plays a central role in the NESCAFÉ Plan,” Ejel said. “But our commitment goes beyond procurement. We invest in farmers, agricultural practices, and technology to ensure sustainable growth and shared prosperity.”

Driving innovation

Nestlé Vietnam works with more than 20,000 smallholder coffee farmers, most operating plots between 0.75 and 2 hectares. Through a train-the-trainer programme, 120 farmer leaders educate 23,000 peers on regenerative practices, spreading knowledge rapidly across the Central Highlands. These practices reduce environmental impact while boosting yields and improving farmer incomes.

Partnerships with institutions such as the Central Highlands Agriculture & Forestry Science Institute support crop breeding, plantlet distribution, and applied research.

“Each year, we review and refine these practices to optimise water use, reduce pesticide reliance, and increase yields,” said Binu Jacob, CEO of Nestlé Vietnam.

“Farmers are receptive to innovation and willing to train others, creating a sustainable ecosystem across the region.”

Sustainability is embedded in every aspect of Nestlé Vietnam’s operations. From sourcing high-quality coffee beans to implementing efficient production processes, the company ensures environmental responsibility is integrated throughout the supply chain. This holistic approach benefits farmers, consumers, and the wider economy alike.

Climate change is among the greatest risks to food and beverage production. Nestlé has pledged to achieve net-zero emissions by 2050, with the Việt Nam operation accelerating the adoption of regenerative food systems at scale.

“Agriculture is a sector with measurable environmental impact,” Ejel said. “By leveraging science, technology, and best practices, we help farmers reduce emissions and improve resilience, while ensuring consistent supply and livelihoods.”

The new agreement aligns Nestlé’s activities with national climate and sustainability objectives, focusing on emissions reduction, sustainable agriculture, and transitioning toward a circular economy. This partnership exemplifies Nestlé’s Creating Shared Value philosophy, linking business growth with societal and environmental outcomes.

Building capacity

Việt Nam has set ambitious targets to become a high-income country by 2045. Nestlé Vietnam aligns its strategy with government priorities via four main pillars: driving economic growth and rural development; accelerating agricultural innovation and digitalisation; elevating standards and global competitiveness; and investing in people and future skills.

Jacob highlighted the company’s focus on youth and talent development. Many students in agricultural universities in the Central Highlands are hesitant to pursue farming, perceiving limited opportunities. Nestlé has partnered with several technical universities and plans to support agricultural students by providing hands-on training in modern agricultural methods and digital tools for crop management, such as apps for weather monitoring and irrigation planning.

“Science and technology are transforming agriculture,” Jacob said. “We want young people to see farming as an innovative and rewarding career. By equipping them with modern skills, we are nurturing a generation that can drive rural development and contribute to the economy.”

Through these initiatives, Nestlé helps address a critical challenge: retaining young talent in agriculture.

“Many graduates leave the sector for other industries,” Jacob noted. “Our goal is to make agriculture a viable and attractive path, combining technology, knowledge, and opportunity.”

Future prosperity

Nestlé Vietnam’s factories are among the most efficient in the world for coffee processing, reflecting the company’s commitment to operational excellence and global competitiveness. Advanced manufacturing, skilled labour, and local partnerships strengthen Việt Nam’s position as a regional and global hub for Nestlé’s operations.

“Our investments generate economic impact beyond our business,” Ejel said. “They support GDP growth, create jobs, and enhance rural development. Việt Nam offers a vibrant workforce, innovative capacity, and a supportive ecosystem -- factors that drive continued investment and shared prosperity.”

 

The MoU with MAE and ongoing collaborations with farmers, universities, and research institutes exemplify Nestlé Vietnam’s integrated, long-term vision. By combining sustainable agriculture, climate action, human capital development, and economic investment, Nestlé ensures its success contributes to broader societal goals.

“Our commitment to Việt Nam remains steadfast,” Ejel said. “We invest in today and, more importantly, in tomorrow. By working closely with the Government, local communities, and youth, we contribute to a sustainable, resilient, and prosperous future.”

From the coffee farms of the Central Highlands to modern production lines and university classrooms, Nestlé Vietnam demonstrates that multinational corporations can be strategic partners in shaping sustainable economic growth. Its integrated approach – linking business, society, and environment – provides a blueprint for shared prosperity in the new era.

Through its investments and partnerships, Nestlé Vietnam is helping the country achieve ambitious socio-economic goals while simultaneously building a low-carbon, climate-resilient, and globally competitive food and beverage ecosystem.

By aligning business objectives with national priorities, the company reinforces the principle that responsible, forward-looking investment benefits both the private sector and society at large. — VNS