Grant Thorton – The Beer Market in Vietnam

Next Story

Vietnam 2016 Salary Guide

July 29th 2016

Saigon Beer Grant Thorton Vietnam Beer Industry Vietnam News Vietnam Advisors

Competition is getting tougher for domestic brewers as foreign rivals increased their shares within the country’s beer industry. With a population of 93 million and a beer-drinking culture, Vietnam is attractive to foreign investors because of the perceived growth potential of its beer industry. Indeed, foreign manufacturers, both newcomers and those who have been in country a long time, have rushed to scale up their production in Vietnam. Recent entrants include AB-In Bev from the USA and Sapporo from Japan.

Vietnam has a total of 129 breweries and an installed capacity of 4.8 billion litres whilst in 2015 production was 3.4 billion litres[1]. In 2015, Saigon Alcohol Beer & Beverages Corp (Sabeco) remained the biggest player with a production of 1.38 million litres followed by Vietnam Brewery Limited (VBL) brewers of Tiger and Heineken with 729 million litres[2]. The other big local player is Hanoi Beer and Beverage Corporation (Habeco) with a production last year of 667 million litres[3].

Sabeco and Habeco have long been investment targets from foreign investors but to date have remained state owned but their growth is said to be slowing and profitability is said to be much lower than thei9r closest rival VBL.

Domestic beer companies are preparing themselves for fierce competition from foreign beer companies after the signing of the Trans Pacific Partnership Agreement. Under the TPP, Vietnam will remove its tax on imported beer. This is expected to attract a further wave of new investments from overseas and  even fiercer competition and will increase the interest further from foreign investors in both Habeco and Sabeco.

Kenneth M Atkinson
Executive Chairman of Grant Thornton Vietnam

[1] Vietnam Beer Alchohol Beverage Association  (VBA) January 2016

[2] VBA January 2016

[3] VBA January 2016

More From the Author

  • Trans Pacific Partnership Sunset
  • The Income Disconnect
  • Grant Thornton: Fiscal Deficit And Divestment Strategy
  • Grant Thornton: Vietnam Retail in Top Three for Private Equity
  • Grant Thornton: Vietnam A Regional Investment Star
  • Green Energy in Vogue
  • Grant Thornton: Contributions to Vietnam’s GDP and Balance of Payments
  • Vietnam’s economic performance
  • Vietnam’s Agro Industry: A Neglected Value Opportunity
  • The Opportunity for Renewable Energy
  • Decree on Equitisation
  • Steady Growth Expected in Private Equity Investment
  • Mergers and Acquisitions Update
  • Grant Thorton – Vietnam Tourism Update
  • Vietnam’s Stock Exchange
  • Vietnam Startups Revisited
  • Leave a Reply

    Subscribe Today

    We will send directly to your inbox the latest Vietnam investment commentaries, travel tips and "in the know" tidbits! 
    Join the Vietnamese IN CROWD!
    First Name
    Email address