Coca-Cola is looking for area in Hanoi to build its fourth factory in Vietnam, while simultaneously planning to open an additional factory in Ho Chi Minh City in 2020.
|President of Coca-Cola Calin Dragan meeting Prime Minister Nguyen Xuan Phuc|
Having a total investment capital of $300 million, the factory in Hanoi is expected to produce both traditional and nutritious products with higher added value, using local materials, while generating jobs for thousands of direct and indirect labourers and developing a distribution network.
President of Coca-Cola Calin Dragan at a recent meeting with Prime Minister Nguyen Xuan Phuc said that thanks to Vietnam’s policy of creating favourable conditions, the firm has enjoyed good growth and has become one of the 100 biggest tax payers in the country.
Coca-Cola Vietnam started investment in Vietnam with a project in Hanoi in 1994. The project is located in Duyen Thai commune of Thuong Tin district.
The Coca-Cola Vietnam system increased local manufacturing and distribution capacity with new filling lines and the installation of new cold-drink coolers at local stores,helping local businesses boost beverage sales. The company’s most popular beverages in Vietnam include sparkling brands Coca-Cola, Coke Light, Fanta, and Sprite, and still brands Minute Maid Teppy, Minute Maid Nutriboost, Samurai, Real Leaf, and Dasani.
The company was among the multinationals operating in Vietnam suspected of transfer pricing. According to numbers released earlier, since its establishment in February 1994 to the end of 2010, the company incurred a cumulative loss of VND3.768 trillion ($163.8 million), higher than the initial investment of VND800 billion ($34.8 million).
In 2011, 2012, and 2013 it continued to report losses. The reason for the loss, according to the company, is the very high cost of ingredients that it has to import from the parent company, and this expense accounts for between 70 and 85 per cent of the cost of production.
By Ha Vy
- Coca-Cola weighs global status against profit
- Coca-Cola Shaken up By Allegations in Vietnam
- We don't evade taxes: Coca-Cola vice chief
- Coca-Cola to up investment in Vietnam amid rivals' expansion
- Coca-cola plans fourth Vietnam factory worth US$300 million in Hanoi
- Vietnam’s green dream within reach
- Local developers unlock power of green building
- US’ FDI in Vietnam
- Building on prospects