Having been operating in Vietnam since 1994, the global Coca-Cola Beverage Company made positive contributions to the economy and supported sustainable social development through business investments, supply chains, distribution networks, human resources, and community activities.
According to the Audit Report prepared by PwC, Coca-Cola's contribution to the economy was made through value-added and employmen,t presented in 2015 report as follows:
1. Economic contributions: In 2015, a direct job at Coca-Cola was estimated to generate more than 30 indirect ones across the system and the total employment generated in that year from Coca-Cola Vietnam's activities was about 78,800, contributing about $ 356 million (equivalent to 9,434 billion Vietnamese dong) to the country's GDP.
2. Tax: In 2015, the total tax paid by Coca-Cola Vietnam, including tax payables and taxes, is USD 24.2 million (equivalent to 641.3 billion Vietnamese dong)
3. Social contributions: Coca-Cola and its partners have concentrated on practical programs to create "Shared Value" in its sustainable strategy with four key points including clean water, women, improved quality of life in community, and management and recycling of plastic solid waste (PSW) as follows:
Programs to improve the economic capacity of women
- Coca-Cola's Mekong Vitality Project, which has provided training courses in finance, community banking, and microenterprise development, has enabled more than 5,000 women with difficult conditions in Mekong Delta to become social entrepreneurs and leaders making a positive social impact right in their local community.
Community health & well-being programs:
- The "Happy Tet Holiday with Coca-Cola" campaign celebrated annually since 2007 has brought thousands of presents and joy to families with difficult conditions across the country.
- Since 2011, Coca-Cola has contributed more than USD 245,000 to the Disaster Relief Emergency Fund (DREF) of the International and Vietnam Red Cross Societies in disaster relief activities, and supported more than 42,000 flood victims in the Mekong Delta.
- EKOCENTER, a community program initiated by Coca-Cola to promote global public-private partnerships, has been in Vietnam since 2015. The project focuses on three main goals: clean water, local women empowerment, and community facilities including refined drinking water, necessities, skills training and online education, internet services, medical services and sports, etc.
Clean water and nature conservation projects:
- Coca-Cola has partnered with WWF in the Tram Chim Preservation Project, with CEFACOM in other projects, and with IUCN in the Monkey Cheek Project for flood water storage to reduce severe droughts and floods taking place in the Mekong Delta area, while providing sustainable flood-based livelihoods to the people of the Mekong Delta. EKOCENTER itself has been providing more than 3 million liters of clean water to people in 9 provinces and cities nationwide.
- Coca-Cola has supported International Coastal CleanUp (ICC), encouraged people to join in the coastal cleanup, and promoted to change the behaviors that cause marine pollution.
By the end of 2017, Coca-Cola's contributions have been updated as follows:
1. Economic contributions
• 2,500 direct jobs were created, followed by 6-10 times of indirect jobs from the supply chain
• VND 32 billion were invested in recruitment & development of human resources
2. Tax: Total taxes and other fees paid were VND 738,442 billion, in which the CIT paid in 2017 was VND 92,153.
3. Social contributions:
• Improving the economic capacity of women: By partnering with the Vietnam Women Entrepreneurs Council (VWEC) and the Vietnam Women's Union, Coca-Cola’s online e-learning courses with over 1,300 female participants have been organized to share business advice in terms of knowledge on start-up skills and complete financial planning that boost women’s confidence and readiness for implementing business activities to improve the family economy, develop local economy, create jobs, and contribute to sustainable social development.
• Providing support for small and medium enterprises (SMEs)’ capacity building: The company has invested over USD 100,000 and cooperated with the US – ASEAN Business Council (US-ABC) and the Vietnam Chamber of Commerce and Industry (VCCI) to build knowledge sharing platforms to contribute to capacity building through the local resources, especially SMEs. Then, it has helped improve capacity building in Digital Era and Industry 4.0, via training programs on supply chain, commercial innovation, and social responsibility.
i. In 2017, 12 Vietnamese enterprises participated in the Vietnamese SME support program.
ii. Eight potential businesses became Coca-Cola's suppliers for packaging, logistics, distribution, marketing, communications, technology, telecom, and PP packaging supply.
iii. The Knowledge Update Program on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) applied technology and promoted Business Logistics to prepare for the integration of Vietnamese SMEs in the Mekong Delta.
• EKOCENTER initiative: By the end of 2017, nine EKOCENTER centers have been established in Ho Chi Minh, Hanoi, Da Nang, Ha Long, Ben Tre, An Giang, Dong Thap, Hue and Ha Tinh. It is expected that 4 new centers will be built in 2018.
• PSW Management and Recycling: Coca-Cola Vietnam and its partners have launched the "Zero Waste to Nature" initiative, targeting four (04) objectives: (1) solving emerging issues from plastic waste; (2) building a procedure to form and promote sustainable business models; (3) developing a recirculation economy-oriented value chain, and (4) proposing a policy to facilitate roll-out of the recirculation economy in Vietnam.
Overview of Coca-Cola's contributions to Vietnam (updated 2017)