Coca-Cola invests additional $285 million

Total investment in Vietnam now exceeds $1 billion.

Coca-Cola has invested an additional $285 million in Vietnam, bringing its total investment in the country to $1 billion.

A representative from the beverage giant told VET that it will spend the funds on developing business activities.

The company is committed to long-term, stable investment in Vietnam. “We therefore decided to invest $285 million more, with total investment now reaching $1 billion at this time,” said Mr. Sanket Ray, General Director of Coca-Cola Beverages Vietnam Limited.

Coca-Cola has held the largest beverage market share in Vietnam but paid no corporate income tax in the country between its arrival in February 1994 and 2014. It has continually invested in build new beverage plants and expanding its market share, so tax authorities and the media have suspected the company uses transfer pricing methods to avoid its tax obligations.

“All US companies operating wherever in the world comply with the laws of the host country,” Mr. Sanket insisted when asked about the issue.

He added that there are no officially allegations about Coca-Cola engaging in transfer pricing activities.

After recording a loss for ten years, Coca-Cola then paid tax of over $20 million in 2014. Though not revealing its revenue and profit figures, it has paid tax of $37.5 million to date, primarily corporate income tax.

Coca-Cola is the world’s largest beverage company, refreshing consumers with more than 500 sparkling and still brands and nearly 3,900 beverage choices. These brands include Diet Coke, Coca-Cola Zero, Fanta, Sprite, Dasani, vitaminwater, Powerade, Minute Maid, Simply, Del Valle, Georgia, and Gold Peak.

by Hai Van / VET