The company was ordered to pay VND433m (US$19,300) and ordered to recall a batch of its Samurai energy drink, which was found to contain less folic acid than claimed.
The ministry said that the inspection at three sites, in Hanoi, Saigon and Danang, had uncovered 13 products categorised as "food supplements” when Coca-Cola was only licensed to make soft drinks. Separate safety certificates are required in Vietnam to produce functional drinks.
On June 23 officials ordered Coca-Cola to suspend the production and sale of products including Minute Maid Nutriboost, a milk drink, Samurai, the Teppy and Splash Smooth Minute Maid lines, sports drink Aquarius and Dasani bottled water.
The Food Safety Administration later granted the company the necessary licences for the functional drinks, though news website Tuoi Tre reported the chief inspector as saying that the licences were not retrospective.
The inspectors also found that a batch of strawberry-flavoured Samurai contained less vitamin B9 than indicated on the label.
A spokesman for Coca-Cola Vietnam said the company “totally abides” by the health ministry’s action, and pointed out that the lower content of folic acid would not affect consumers’ health.
The ministry has recently ramped up its inspections of consumer food and beverage products in Vietnam. In May, it fined Filipino beverage firm URC over VND5.8bn ($260,000)—the biggest ever penalty for a drinks company—for producing and selling products with high lead content.
Officials said last year that they would inspect four major beverage companies this year. The remaining firms, Pepsi Vietnam and Wonderfarm are expected to be visited in the next few months.
More stories from Southeast Asia…
Indonesia sees jump in foreign investment in the F&B industry
Foreign investment in Indonesia's processed food and beverage industry is expected to have topped US$1bn in the first half of this year, marking a substantial improvement over a difficult 2015, when the figure only reached US$1.5bn for the entire year.
On announcing the increase, Adhi Lukman, general chairman of the Indonesian Food and Beverage Association (GAPMMI), said that investment was dominated by Asian countries, especially Japan, South Korea and India.
With a mostly Muslim population of over 255m, Indonesia offers a sizeable market that is growing fast, said Lukman.
Last year, the overall investment in the food and beverage market was sluggish due to concerns over an economic slowdown and a weak rupiah, which had a significant impact on an industry that is dependent on the import of basic materials, including sugar, wheat, milk and soybeans.
Investments now seem to have bounced back with 16% growth reported by GAPMMI. At this current rate, total investments are expected to reach US$3.8bn by the end of the year, compared to last year’s US$3.3bn.
Though purchasing power has weakened over the last two years amid slowing economic growth, Lukman predicted that the middle- and long-term picture remains positive as these factors are expected to accelerate starting from this year.
Nestlé announces new $43m Philippines plant to produce Milo ingredient
The Nestlé’s Philippines operation is investing PHP2bn (US$43m) in a new plant south of Manila to manufacture a key ingredient in its popular Milo fortified chocolate drink.
Opening in late 2017, it will be the smallest of only four Nestlé sites that process “Protomalt”, which is formed from carbohydrates extracted from cassava and barley.
The plant will be built in Batangas, alongside an existing plant which produces a range of powdered milk and coffee products. The Swiss consumer food and beverage giant operates four other facilities in the Philippines.
The Philippines is an increasingly robust market for Nestlé, which has invested nearly US$300m over the last five years to expand its production capacity in its eighth-biggest market.
With nearly US$2.6bn in sales last year, the country is second only to China in Asia, with Milo a “significant contributor” to its regional revenue, said Jacques Reber, chief executive of Nestlé Philippines.
“The Philippines is an important market [and this] PHP2bn investment is a clear demonstration that we believe in the potential of the Filipino market, of the Philippines and Nestlé Philippines,” said Reber, adding that the company intends to “continue to invest in a big way.”
With a claimed market penetration of over 90%, Philippines is also the second-biggest market for Milo after Malaysia. Developed in Australia eight decades ago, the drink is extremely popular in Southeast Asia, where it is marketed as a functional drink.
According to Nestlé, Protomalt and the other active ingredient in Milo drinks, Actigen-E, help to “energise the body and mind”.
Malaysian halal site eyes global expansion
Malaysian halal e-commerce site Aladdin Street will expand to Singapore by the year-end, with further international growth in 2017.
The startup launched in Malaysia in April and seeks to promote halal products as premium and healthy goods, even for non-Muslims.
The venture’s co-founder is Sheikh Muszaphar Shukor, who became the first Malaysian to go into space in 2007.
Dr Muszaphar said the company has plans to invest about US$100m over the next three years to expand its operations and marketing to over 30 countries worldwide including Singapore, Indonesia, India, China, the Middle East, and parts of Europe.
The firm currently has 20 employees in Singapore, a number that is expected to rise to 50 when it launches. Singapore and China are the two largest importers of Halal products from Malaysia.
Overall, the site aims to secure 1,500 merchants, with around 30,000 food, cosmetics and electronics products.
"Halal is not only for Muslims, but for everyone in search of a safer, healthier and more wholesome lifestyle," said Dr Sheikh.
He stressed all merchants are carefully vetted and have to be invited to sell their goods on the platform.
Aladdin Street’s expansion comes on the back of a number of new halal e-commerce ventures globally.
Last month UK Halal food brand Haloodies launched 16 lines with Amazon Fresh, while earlier this week the Indonesian Chamber of Commerce and Industry (Kadin) registered with the Malaysian Trade Ministry's halal e-commerce portal ehalal.com to endorse Indonesian halal products.
While the site does not directly sell goods, it directs buyers to verified suppliers or its e-commerce partners.