The People's Committee of the central city of Da Nang has refused to permit Coca-Cola Vietnam to undertake its 5,000sq.m production line expansion project.

In a meeting with the local administration, Da Nang ’s Vice Chairman Vo Duy Khuong said the city had provided the company an area of 40,000sq.m at a preferential price of 0.647 VND per square metre a year since 2008, but the company had only developed two thirds of it.

He said the company should expand the production line on the remaining land.

Khuong also added that the company had reported losses since 2008 and that was the reason the city had refused the company's proposal.

Last year, the city earned a modest amount from the company including 4 billion VND (190,000 USD) in value added tax, natural resource tax of 73 million VND (3,500 USD) and 57.7 million VND (2,700 USD) from corporate income tax.-VNA