Nestle Vietnam has started the construction on a new $70m facility at Thang Long Industrial Park II in Hung Yen province.
To be built on an area of 10ha, the factory will add a new product line to the company's portfolio.
The new plant is built not only to address the local demand but also to help the country expand its position in health, nutrition and healthy living.
Nestle Vietnam managing director Ganesan Ampalavanar said: "This factory will be the sixth factory of the Nestle Vietnam group of companies in Vietnam and the second one in Hung Yen province.
"The investment reflects our strong confidence in the rapid development of Vietnam economy."
Nestle aims to deploy modern technology and infrastructure at the factory in a bid to develop best quality products, as well as reduce environmental footprint while making the maximum use of natural resources.
Once operational next May, the facility will add 300 new jobs for the local residents.
The consumers in northern Vietnam will benefit from the new factory as they can enjoy an increased and easy supply of Nestle products.
Ampalavanar added: "We aim at creating shared value for the local community by opening up new employment opportunities, increasing more Nestle quality products made by Vietnamese, helping to meet growing Vietnamese consumer demand especially in the Northern part of Vietnam thus contributing to the Vietnam economy growth."
With five factories operating across the country, Nestle has seen significant rise in its investment in Vietnam over the last 20 years, from $24m in 1995 to $520m this year.
Last year, the Swiss company also planned to invest $137.93m in Egypt over the next few years to capitalise on growing demand.
