After 20 years of losses the beverage giant's Vietnamese operations finally in the black.
Coca-Cola Vietnam has released a report on its investment, business, and tax obligations in 2014.
Taxable profits for the year stood at $16.6 million, double the $7 million reported in 2013.
Total taxes paid in 2014, including corporate income tax, license tax, environmental tax, and VAT, reached $20 million, while sales volumes increased 25 per cent.
The news has attracted attention as it comes after many years of the company reporting unprofitable business and follows suspicions being raised against many foreign companies, including Coca-Cola, that they have been involved in transfer pricing activities. No evidence was found in this regard against Coca-Cola.
Minister of Planning and Investment Bui Quang Vinh said recently that not all enterprises reporting losses yet expanding their investment activities were viewed as being involved in transfer pricing.
At a press conference in July 2013, Mr. Clyde C. Tuggle, First Vice President and Director of Public Relations and Communications at Coca-Cola, said it was not involved in transfer pricing.
Coca-Cola first arrived in Vietnam in 1960 and returned again in February 1994 after the US removed its trade embargo on Vietnam.