Coca-Cola Closes Ho Chi Minh Plant After 30 Years, Opens New Tay Ninh Facility
Coca-Cola is set to close its Ho Chi Minh City plant this Saturday, marking the end of a 30-year investment in Vietnam. Meanwhile, the company has opened a new plant in Tay Ninh province, equipped with five production lines and a capacity of one billion liters annually.
The closure of the Ho Chi Minh City plant follows the expiration of Coca-Cola's investment license, as required by Vietnam's 2020 Investment Law. The company had operated the plant since 1995, initially licensed in September of that year.
Vietnam has been a significant market for Coca-Cola. In 2024, Swire Coca-Cola recorded sales of 155 million unit cases in the country, making it the company's third-largest market globally. However, per capita consumption of Coca-Cola products in Vietnam was relatively low at 37 unit cases, the lowest among the six markets managed by Swire Coca-Cola.
In January 2023, Swire Pacific Ltd. completed its purchase of the entire Coca-Cola bottling subsidiary in Vietnam. There were no specific reports of an acquisition of a Coca-Cola bottling plant in Vietnam in January 2023, suggesting the transaction might have been a local or regional deal with limited publicity.
Coca-Cola's shift from Ho Chi Minh City to Tay Ninh signals a strategic move to modernize and increase production capacity in Vietnam. Despite the closure of the older plant, the company remains committed to the Vietnamese market, with plans to boost sales and consumption in the coming years.
