VIETNAM: Authorities reject Pepsi expansion plans

By Sarah Diston | 9 March 2001

Pepsi may have to put expansion plans for its Vietnamese production base on hold indefinitely after authorities refused to grant planning permission.

The Can Tho authorities has ordered its industrial park board not to give the joint venture with IBC, which Pepsi has a 96% share in, a licence to build on the bottling plant.

Claiming not to have been told officially of the decision by the authorities, general director at IBC, Pham Phu Ngoc Trai said: "We were taken by surprise and simply cannot understand why we are not allowed to implement our project in Can Tho."

It has been reported in the Saigon Times that for the past two years the project has been frozen after the Ministry of Planning and Investment (MPI) requested a delay on the grounds that the country had more than enough soft drink plants.

Head of the Can Tho industrial park management board, VoVan Luy, said in the report: "We are surprised at the province's decision and we want to make another appeal to the province and the MPI."

Trai said that IBC, which had signed a land lease contract worth $450,000 and another contract for equipment worth over $1m, has not considered the possibility of moving to another province.

Sarah Diston

Companies: Pepsi

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