VietNamNet Bridge - With the consumption level of 3.8 billion liters of beer a year, the third highest in the world and the highest in SE Asia, Vietnam is a highly attractive market for brewers. 

Taiwan Tobacco and Liquor Corp (TTL), for example, plans to compete with Heineken and Budweiser in Vietnam, proof of the appeal of the local beer market.

The manufacturer from Taiwan plans to introduce three brands in Vietnam: Golden Medal Taiwan Beer, Taiwan Beer Sweet Touch and pineapple flavor beer, slated for October.

With the plan to launch fruit flavored beer, unparalleled in Vietnam, TTL hopes it will have the chance to increase the brand’s presence in Vietnam.

TTL plans to sell 38,000 tons, or 38 million liters a year, and hold one percent of Vietnam's market share in the next three years.

With the consumption level of 3.8 billion liters of beer a year, the third highest in the world and the highest in SE Asia, Vietnam is a highly attractive market for brewers.

Carlton & United Breweries (CUB) also is showing an interest in the Vietnamese market. 

At a meeting with Deputy PM Vuong Dinh Hue during his working visit to Australia on July 24, CUB’s CEO Jan Craps said the company is considering buying Sabeco and Habeco shares to become strategic shareholders, when the state divests its shares in the two breweries this year.

The enterprise is also considering expanding the brewery in Binh Duong province.

In 2015, Anheuser-Busch InBev from Belgium set up a Budweiser brewery with the capacity of 50 million liters a year in Binh Duong province and has raised the capacity to 100 million liters. 

Japanese Sapporo, which considers Vietnam the most important market in SE Asia, has raised the capacity of its brewery in Long An province from 40 million to 100 million. However, since its market share remains modest, Sapporo plans to acquire a stake in Sabeco and Habeco to boost sales in Vietnam.

Frans Eusman from Heineken said Vietnam is one of the markets which brings biggest profits to Heineken.

Danish Carlsberg, which has been in Vietnam since 1993, besides a brewery in Vietnam, holds 17 percent stake in Habeco which gives it priority to buy Habeco stake when the State divests shares.

In Vietnam, high-end products account for 7 percent of the market share, controlled by foreign brands such as Heineken, Tiger and Sapporo, while more common products account for 60 percent of the market share, controlled by Vietnamese brands including Habeco, Sabeco and Dai Viet.

Analyts say that the Vietnamese beer market is getting more cramped with the presence of over 30 international brands.

Habeco, Hue Brewery, Sabeco and Heineken NV are the four names which dominate the domestic market, making up 90 percent of the volume of beer consumed in Vietnam.

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