Ho Chi Minh City, January 09, 2020

Since its inception, Coca-Cola Beverages Vietnam Ltd., (CCBVL) has focused on investing, creating local jobs, economic stimulus and shared value with local partners and customers. CCBVL has always conducted its business in Vietnam with integrity and respect for all local laws.

From March 2017 to December 2019, the General Department of Taxation (GDT) of Vietnam conducted an audit of CCBVL, looking into records spanning nine years from 2007 to 2015. CCBVL has cooperated fully with the GDT by providing the required information and documentation needed for the GDT to conduct its audit.

During the course of the audit, CCBVL has recognized that certain minor errors have been made and has fully settle the required obligations. As always, CCBVL is committed to ensure that it is fully compliant with all local tax requirements.

CCBVL disagrees with the vast majority of the GDT’s assertions and strongly maintains its position that it has operated in a compliant manner. CCBVL’s position has been clearly expressed to the GDT in all documentation and explanations prepared and submitted as part of CCBVL’s ongoing compliance as well as during the tax audit.  CCBVL also has filed an appeal to the GDT with respect to the disputed issues in accordance with the law and will continue working collaboratively with the government to resolve these issues consistent with its commitment to conduct business in Vietnam with the highest level of integrity and utmost respect for the law.  As such, CCBVL has paid under protest the tax amount assessed on the disputed issues as required during the pendency of the appeal and hopes to receive a refund of the amount paid.

Background on CCBVL’s business in Vietnam:

With a long-term commitment to invest in Vietnam, CCVBL has been committed to driving sustainable growth in the country since first entering the country in the 1990s. CCBVL has created an average of 2,300 direct jobs and 16,000 indirect jobs from 2016-2018 and provides high quality beverage products to Vietnamese consumers. Although CCBVL operated at a significant loss for more than 20 years while building its business, Coca-Cola has continued to invest and maintain a strong confidence in the country’s development.

Beyond its business activities, CCBVL has also engaged in corporate social responsibility initiatives to further connect and support local communities in Vietnam. CCBVL has invested significantly in sustainable development programs such as supplying clean water for local communities, empowering women and supporting SMEs, and local community capability development, well-being development for communities and people, and plastic waste management.

CCBVL’s actions have gained it various business recognitions, notable of which is the substantial contribution to government budget via kinds of tax payments in recent years. CCBVL has been cited as one of the top 2 sustainable companies by the Vietnam Chamber of Commerce and Industry in the consecutive years of 2018-2019, as well as named the No. 2 Employer of Choice in Vietnam and among the best places to work in Vietnam in recent years.