Nafoods, a major Vietnamese fruit processor, completed the second-phase construction of its fruit-processing plant in Gia Lai province in April 2026 and will bring it on line from June. With a total investment of 744 billion dong (about US$28.25 million, about 4.4 billion yen converting at 156 yen to the dollar) and an annual processing capacity of 100,000 tonnes, it aims to be Asia's largest passion-fruit processing base. Passion-fruit concentrate and puree are also a procurement target for Japanese beverage and confectionery makers, and a further expansion of supply capacity is a move buyers cannot overlook.
The second phase brings processing to 100,000 tonnes a year
Nafoods' fruit-processing plant had its first phase (104 billion dong) completed in August 2022. This second phase invests 640 billion dong (about US$24.29 million), finishing construction in April 2026 and starting operation in June. The site is over 1.3 hectares, and after the second phase is completed the annual input processing capacity reaches 100,000 tonnes.
Besides passion fruit, the processing targets are pineapple, dragon fruit and soursop. It has about 1,000 tonnes of cold-storage capacity and is expected to consume about 65,000 tonnes of raw material a year in passion fruit alone.
The vision of 'Asia's largest passion-fruit base'
Nafoods sets out a policy of growing this plant into 'Asia's largest passion-fruit production and processing base.' The company states that 'at full operation, it can process up to 100,000 tonnes of passion fruit a year.'
Passion fruit is surging as a Vietnamese export commodity, Q1 exports to Europe rose 73% to US$30.5 million, taking the top spot among fruit to the EU and this is the background to the expansion of processing capacity. Gia Lai province is a main passion-fruit producing area in the Central Highlands, a location that brings raw-material procurement and processing close together.
An organization of investment and capacity
| Item | Details |
|---|---|
| Total investment | 744 billion dong (about US$28.25 million / about 4.4 billion yen) |
| First phase | 104 billion dong (completed August 2022) |
| Second phase | 640 billion dong (construction completed April 2026 / operation June) |
| Site | Over 1.3 hectares |
| Annual processing capacity | 100,000 tonnes |
| Passion-fruit raw-material consumption | About 65,000 tonnes a year |
| Cold-storage capacity | About 1,000 tonnes |
| Processing targets | Passion fruit, pineapple, dragon fruit, soursop |
* Yen conversion at US$1 = 156 yen.
Backing from results, and reactions
The expansion investment is supported by strong results. Nafoods' net sales in the third quarter of 2025 were about 628 billion dong (about US$23.84 million), up 75% year on year, and net profit about 44 billion dong, up 56%. For January–September it posted sales of 1.66 trillion dong and profit of 115 billion dong.
The company operates in over 70 countries across five continents, including Europe, the US, Japan, South Korea, the Middle East and Australia, and within the industry there is an assessment that 'a large processing base adjacent to the raw-material producing area raises supply stability by a notch.' The parent, Nafoods Group (founded 1995), holds 99.86% of the processing subsidiary Nafoods Tay Nguyen.
Impact on Japanese buyers and distributors
Passion-fruit concentrate and puree are raw materials in demand in Japan's beverage, dairy and confectionery sectors. If a processing base on the scale of 100,000 tonnes a year operates, the stability and volume of supply to Japan become easier to secure.
A location adjacent to the raw-material producing area has the advantage of shortening the time from harvest to processing and curbing quality variation. Having cold-storage capacity also contributes to leveling supply in the busy season.
Ripple effects on the industry
In central Vietnam and the Central Highlands, fruit-processing investments are coming one after another, AIG breaking ground on a second coconut-processing plant in the Mekong Delta and the like, and the flow of processing primary products domestically to capture added value is spreading. Nafoods' expansion is a symbolic example of it.
The harder a commodity is to keep as fresh fruit, like passion fruit, the more the fullness of processing bases determines export competitiveness. One of Asia's largest processing capacities may push Vietnam up into a hub of passion-fruit processing.
Summary
Nafoods' Gia Lai second phase is a large investment aiming for 'Asia's largest passion-fruit base' with a processing capacity of 100,000 tonnes a year. It captures the surging demand to the EU and reconciles quality and quantity through processing adjacent to the raw-material producing area. For Japanese beverage and confectionery buyers, one more stable procurement source for concentrate and puree gains thickness.
