Nestle Vietnam ‘loses' $30m
Nestle Vietnam ‘loses' $30m
Nestle Vietnam has reported that after 18 years operating in the country it has suffered losses of US$30.8 million. The losses are cumulative from 1995 until 2012.
This figure was announced in a report on foreign direct investment (FDI) projects which have a registered capital of $100 million.
The figures were requested by the Ministry of Planning and Investment.
However, Vu Quoc Tuan, spokesman of Nestle Vietnam said that the company had made a profit in 2007, 2008, 2011 and 2012.
According to a market survey by the global market research company TNS, Nestle lead the instant coffee market in Viet Nam.
Trying to explain why this had not led to better business figures, Tuan said that "market share and profit are two entirely different stories".
The best reason he could provide for his company's losses over such a long period, was that "loss is normal".
Meanwhile, the spokesman told Viet Nam News that following positive recent business results, the company had expanded its operations in Viet Nam by investing $250 million in a new coffee factory in Dong Nai Province.
He said this move reflected the company's long-term vision and strategy in the country, the second largest coffee exporter in the world.
Nestle Vietnam Ltd was established in 1995. The first Dong Nai Factory has been operational since 1998. In July this year, a new Nescafe factory opened in Amata Industrial Park in Dong Nai Province, bringing the group's total investment in Viet Nam to $466 million.
vietnamnews
