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Vietnam: Philippine beverage firm San Miguel Corporation (SMC) plans to invest US$100 million to build a new brewery in Southern Vietnam as part of its regional expansion plan that could also help boost the Philippine economy, Asia Pulse revealed on October 8. The company's plan was presented to Filipino reporters by SMC President Ramon Ang at the sideline of the ongoing 5th Asia-Europe Meeting (ASEM) held here.

Ang said the firm will invest around $700 million (P39.2 billion) over the next five years outside the Philippines in viable markets like Thailand, China, Vietnam, Indonesia, Malaysia, Autralia and Taiwan. "In Ho Chi Minh (formerly Saigon), a fast growing city in Southern China, we intend to build a new plant at a cost of $100 million for our non-alcohol beverage like water, juice, energy drink, coffee, tea and milk," he said.

The amount is on top of the $150-million investments of the SMC in Vietnam for the last 10 years, he noted. Ang said the huge investments of SMC in the region have been helping the Philippine economy. "Seventy per cent of our investments go the Philippines while the remaining 30 per cent go to other countries in the region. Our earnings from our investments abroad are reinvested in the Philippines which generate more taxes for the government," he said.

Ang said the Philippine government is expected to collect at least P20 billion in value-added taxes (VAT) from the company,s projected P200 billion sales revenue this year. The amount does not include taxes on its beer and hard liquor products and on importation of raw materials. Aside from tax revenue, SMC is also helping the government in its job generation efforts as it employs Filipinos for top positions in its businesses abroad, he noted.

Ang is among the members the Philippine business delegation here with President Gloria Macapagal-Arroyo in the ongoing ASEM Leaders, Summit here. The delegation participates in the 9th Asia-Europe Business Forum (AEBF) IX, an annual gathering of business leaders in Asia and Europe at the sideline of the summit.

The Forum is expected to report today its output to ASEM summit which outlines feasible measures to further intensify cooperation in trade, finance and investments. Trade Secretary Cesar Purisima, who leads a 12-member Philippine business delegation, noted that the Philippines together with other countries, is interested in strengthening the AEBF as an institution to ensure greater continuity of membership and initiatives. "Our delegation is quite an interesting mix. We have representatives from the SME (small and medium enterprises) sector, consulting, infrastructure, ICT (information communications technology), food processing, tourism and education," the trade chief noted.

Parallel to the ASEM, the Philippines, through the Department of Trade and Industry, is also participating in the ASEAN Trade Fair hosted this year by Vietnam. The Philippine pavilion features Philippine brands which have become market leaders in Vietnam.


10 October, 2004