JavaScript is off. Please enable to view full site.

Da Nang rejects Coca-Cola expansion proposal

Da Nang rejects Coca-Cola expansion proposal

Thursday, December 13, 2012, 11:37 GMT+7

Coca-Cola Vietnam proposed to expand production of its Da Nang-based manufacturing plant in early Ocotber, but the city’s People’s Committee has turned down the demand. During a meeting with the city’s authorities, the soft drink manufacturer suggested it be allowed to lease a 4,700-square-meter land plot next to its current plant in Lien Chieu District to expand production, saying its products are enjoying good consumption in Vietnam, and the central part in particular. Coca-Cola Vietnam has recently undergone scrutiny from local tax authorities over possible transfer pricing, as the company has repeatedly reported losses and has not paid a single penny of corporate income tax due to those losses since its arrival in Vietnam. Moreover, the company is now demanding to lease more land area, yet it has only covered two-thirds of the 40,000-square-meter land plot it leased from the city. In response, Da Nang authorities said they appreciate the wish to expand production of Coca-Cola Vietnam, but added that the demand will not be accepted. Da Nang has created all necessary conditions for Coca-Cola to establish investment in the city, but has so far collected modest tax payments from the company, the authorities said. “So Da Nang will have to review the effectiveness of Coca-Cola Vietnam’s projects to consider leasing more land area to the company,” they said. Vo Duy Khuong, deputy chairman of the city’s People’s Committee, said not only Coca-Cola Vietnam, but all of the other foreign-invested businesses in the city will not be allowed to expand operation if they have a dubious financial status. “The city will not approve any expansion proposals if the companies have engaged in transfer pricing activities,” he said frankly.



Read more




‘Taste of Australia’ gala dinner held in Ho Chi Minh City after 2-year hiatus

Taste of Australia Gala Reception has returned to the Park Hyatt Hotel in Ho Chi Minh City's District 1 after a two-year hiatus due to the COVID-19 pandemic

Vietnamese woman gives unconditional love to hundreds of adopted children

Despite her own immense hardship, she has taken in and cared for hundreds of orphans over the past three decades.

Vietnam’s Mekong Delta celebrates spring with ‘hat boi’ performances

The art form is so popular that it attracts people from all ages in the Mekong Delta

Latest news