Establishing Dong Nai City to drive urban upgrading and high value-added industrial growth

As one of Vietnam’s key industrial hubs, Dong Nai has attracted a large number of foreign direct investment (FDI) enterprises. Nestle ranks among the top 10 FDI investors in the province, having built one of Vietnam’s leading coffee production and processing value chains while taking the lead in digital transformation.

Recently, Khuat Quang Hung, Vice General Director in charge of External Affairs and Communications at Nestle Vietnam Co., Ltd., shared insights with Dong Nai Newspaper and Radio, Television. According to Hung, upgrading Dong Nai to a centrally governed city would elevate its urban status and create favorable conditions for the development of high value-added industries.

Khuat Quang Hung, Vice General Director in charge of External Affairs and Communications at Nestle Vietnam Co., Ltd.

A strategic production hub

As Dong Nai moves closer to becoming a centrally governed city, how do you assess the impact of this milestone on the investment environment and Nestle Vietnam’s operations?

Dong Nai’s aim to become a centrally governed city marks a significant milestone, reflecting a long-term vision in planning, infrastructure development, and institutional improvement. From the perspective of an FDI enterprise, this is a positive signal that helps reinforce confidence in a stable, transparent investment environment with stronger regional coordination capacity.

For Nestle Vietnam, Dong Nai serves as a strategic production hub within our global value chain. As the province’s status is elevated and foundational conditions improve, businesses will be better positioned to optimize operations, enhance production efficiency, and expand contributions to local socio-economic development.

As a large-scale coffee processing and exporting enterprise, what are your expectations regarding logistics infrastructure and supply chains as Dong Nai develops into a nationally significant urban center?

As a major coffee processor and exporter, Nestle places particular emphasis on the efficiency and integration of logistics infrastructure and supply chains. As Dong Nai advances toward a nationally significant urban center, we expect continued investment in modern, seamless, and sustainable transport connectivity, seaports, inland container depots, logistics centers, and digital infrastructure.

Such improvements would not only shorten delivery times and reduce transportation costs but also enhance supply chain reliability, an increasingly critical factor amid global market fluctuations. In the coffee sector, efficient logistics also helps ensure product quality, meet stringent export standards, and strengthen the global competitiveness of Vietnamese coffee.

What opportunities does urban upgrading create for enterprises to enhance value in Vietnam’s coffee industry, particularly in value-added processing and exports?

In our view, urban upgrading goes beyond infrastructure development; it creates new opportunities for innovation, attracts high-quality human resources, and fosters the growth of high value-added industries. These are key drivers for advancing deep processing in the coffee sector.

As Vietnam is currently the world’s second-largest coffee exporter, increasing the share of deeply processed products will play a crucial role in enhancing the overall value of the industry.

With its modern factory system in Dong Nai, Nestle Vietnam sees clear advantages in improved connectivity between raw material regions, production, and export markets. This will help build a modern, transparent, and sustainable coffee supply chain, gradually helping Vietnamese coffee move up to higher value segments.

Joining hands for sustainable development

From the perspective of an FDI firm, what further improvements would you like to see from Dong Nai authorities to better support enterprises in the next development phase?

We highly appreciate Dong Nai authorities’ efforts in improving the investment environment in recent years. Looking ahead, from the perspective of FDI enterprises, we expect the province to continue focusing on several key priorities.

First, further institutional reforms and administrative procedures should be enhanced in a transparent and consistent manner, enabling businesses to confidently plan long-term strategies. Second, human resource development should be aligned with practical business needs, particularly in technical labor, management, and experts in processing industries, logistics, and digital transformation. Third, infrastructure investment should follow a green and sustainable orientation, alongside supportive policies to help enterprises achieve emission reduction and sustainability goals.

We are highly honored to contribute to Vietnam’s development and proud of Nestle’s contributions over its path of more than three decades in the country. Moving forward, we aim to continue investing to create value and positive impacts for consumers, communities, and the environment, while supporting to Dong Nai’s sustainable development.

In your long-term strategy, does Nestle Vietnam plan to expand investment or upgrade its production chain in Dong Nai as the province becomes a centrally governed city?

Dong Nai has been a strategic investment location for Nestle Vietnam in recent years, and we remain committed to its long-term development. Within our long-term strategy, we continuously review opportunities to improve operational efficiency, adopt new technologies, enhance sustainability across the production chain, and increase the value of Vietnamese agricultural products.

Recently, Nestle has further contributed to Dong Nai’s development by expanding its investment.

In 2025, we announced an additional investment of nearly VND1.9 trillion to expand the Nestle Tri An factory in Dong Nai. As a result, total investment in the Tri An plant during the 2024–2025 period has reached over VND4.3 trillion.

This demonstrates Nestle’s long-term commitment to accompanying Dong Nai’s development in a modern and sustainable direction, while contributing to economic growth, job creation, and value enhancement in the local coffee supply chain.

According to Khuat Quang Hung, specific investment decisions in the coming period will depend on various factors, including policies, infrastructure, market demand, and overall development orientation. Should Dong Nai continue to improve its investment environment toward modernity, transparency, and sustainability, it will provide a strong foundation for enterprises like Nestle to further consider expanding and upgrading their production chains in the future.

By K.Minh – Translated by M.Nguyet, Thu Ha