Home » Investment » Coca-Cola to pour US$300 million more in Vietnam

The world’s largCoca-Cola to pour US$300 million more in Vietnamest beverage company Coca-Cola on Friday announced a new investment of US$300 million over the next three years in Vietnam to further capture growth opportunities in the local market.

The increased investment, which will begin in 2013, will raise the total amount Coca-Cola and its bottling partners will invest in Vietnam in the 2010-2015 period to US$500 million, said the company’s chairman and chief executive officer.

During a visit to Hanoi, Muhtar Kent, chairman and Chief Executive Officer of the company, said his company would focus on building new infrastructure, applying world-class marketing practices, creating new jobs, and developing stronger partnerships with local customers.

“Vietnam is an important growth market in Asia Pacific as we work to achieve our 2020 vision goal of doubling system revenues this decade,” Muhtar Kent said in a statement, adding “this new financial commitment is also an important acknowledgement of our belief in the long-term potential of this key market.”

Earlier, during his visit to Vietnam in 2009, Mutar Kent announced a US$200 million investment by Coca-Cola into the country in the 2010-2012 period.

The company’s most popular beverages in Vietnam include sparkling brands Coca-Cola, Coke Light, Fanta and Sprite.

The system also directly created 500 new jobs locally in Vietnam, with 99% of its total labor force filled by local Vietnamese employees. These direct jobs then generated an estimated additional 5,000 job opportunities in supporting industries.

Coca-Cola also has continued to invest in building sustainable communities in Vietnam with approximately US$1.5 million dedicated to local projects since 2010. These projects have included watershed conservation in partnership with the World Wildlife Fund (WWF), specific disaster relief programs in conjunction with Red Cross Vietnam, and Coca-Cola’s “Clean Water for Community” initiative.

In related news, the Suntory Holdings Limited earlier last week announced that it would acquire a 51% stake in PepsiCo’s Vietnam beverage business, while PepsiCo will be a 49% shareholder. It is part of a recent agreement between the two parties to form a strategic alliance which is expected to build on PepsiCo’s existing position in Vietnam and create new growth opportunities for PepsiCo and Suntory in the market.
(Sai Gon Times)

No comments yet... Be the first to leave a reply!