The move would enable SBVL to import flavors for carbonated softdrinks until such time that the local flavor producers can meet the firm’s quality standards. SBVL commenced operations in 1996.
The approval of the request will encourage SMC, which accounts for more than half of total Philippine investments in Vietnam, to further expand its operations in the country.
Aside from SBVL, other subsidiaries of SMC in Vietnam are San Miguel Phu Tho Packaging Co., which makes metal closures and caps, and San Miguel Yamamura Haiphong Glass Co., which produces and distributes glass containers.
Last year, SMC completed its purchase of TTC Vietnam Ltd., a company with hog farm and feed milling operations in Binh Duong.
To further strengthen its presence in Vietnam, SMC is eyeing a joint venture with Hormel USA for the establishment of a processed meat manufacturing plant.
SMC was earlier issued an investment license by the Dong Nai province in Vietnam.
Aside from Vietnam, SMC is also looking at Thailand, China, Indonesia, Australia, Malaysia and Taiwan for its regional expansion.
SMC expects its annual group revenues to increase by $300 million from sales generated in these markets.
The conglomerate has earmarked up to $700 million for planned acquisitions and investments in Asia, aimed at seeking offshore growth to complement its dominant foothold in the local beverage market.
SMC is hoping its increased presence in these Asian markets will allow it to keep posting double-digit sales growth even as economic activity in the Philippines remains sluggish.