Swire Pacific Ltd. has completed its purchase of the entire Coca-Cola bottling subsidiary in Vietnam, marking the Hong Kong conglomerate’s first expansion into the Southeast Asian beverages market.
Swire Coca-Cola Limited of Hong Kong-based Swire Pacific is the new owner of Coca-Cola Beverages Vietnam Ltd., which has three operational bottling facilities in the country.
Swire Coca-Cola started its acquisition of the Coca-Cola Company’s bottling operations in Vietnam and Cambodia for $1.02 billion in all last July to drive regional expansion.
The buyer completed buying Cambodia Beverage Company Ltd., with one bottling plant, last November.
Swire Coca-Cola announced the completion of the Vietnam deal on Monday, saying it owns and operates three beverage production facilities, 18 production lines and six distribution centers across Vietnam with a direct and indirect workforce of over 3,500 people.
“We are delighted to step up our presence in Southeast Asia with our investment in Vietnam and looking forward to welcoming our new colleagues on board,” Swire Coca-Cola chairman Patrick Healy said in the announcement.
Claudia Lorenzo, president, ASEAN and South Pacific, Coca-Cola, said: “Swire Coca-Cola brings the expertise, capabilities and passion to further accelerate the tremendous growth of the Vietnam market.”
Vietnam is one of the fastest-growing economies in Southeast Asia, posting pre-pandemic 2022 GDP growth of 8.02%. The market is home to a rapidly urbanizing population of nearly 100 million.
Swire’s Vietnam acquisition deal does not include Coca-Cola’s latest plant, the giant’s fourth and largest in the country, currently under construction in the southern province of Long An.
Coca-Cola Beverages Vietnam started work on the largest factory last October, aiming at improving productivity and optimizing resources in production by applying a smart factory model and modern techniques.
The $136-million facility will cover 19 hectares in Ben Luc district bordering Ho Chi Minh City, Vietnam’s economic powerhouse. The first phase is set for completion by 2027 with six production lines, while the second phase would be developed from 2027 to 2039 with a total annual capacity estimated at 1 billion liters of products.