The US-based soft drink maker Coca-Cola in Vietnam and other retailers have spent around US$894,000 since the beginning of this year to import the drink to Vietnam to increase profits.
The imported soft drink, mostly Cambodian-made 1.5-liter PET bottles, is much cheaper than local products since the after-tax cost of each imported box of Coca-Cola is around VND80,000 ($4), half the retail price in the domestic market.
Although has three plants in the country, Coca-Cola Beverages Vietnam Co has spent over $99,500 on import 404,000 boxes of the soft drink this year, according to the Ho Chi Minh City Customs Department.
No Coca-Cola products were imported into Vietnam last year, according to Vietnam News Agency.
Since the consumption of the products in the local market was growing faster than expected, so several firms chose to import some to meet demand, said Martin Gil, general director of Indochina Coca-Cola.
The three Coca-Cola plants in the country produce a total of 608 million liters and the company is installing two more production chains in its factories in Hanoi, and upgrading facilities in HCMC and Danang.
“The imports will be fully stopped at the end of next year when we complete the upgrade of our production capacity,” Gil told Tuoi Tre.
Apart from Coca-Cola, the soft drink Red Bull is also imported from Thailand, despite the fact that it is also produced in Vietnam.
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