VietNamNet Bridge – Experts have every reason to believe that
breweries are the most lucrative business field for any investors. Vietnam is a
vast market where the demand remains always high, even in the economic crisis.
The beer sales have been
reportedly decreasing dramatically in all the big markets of the world, but the
sales have been increasing steadily in Vietnam.
Though Vietnamese have to cut
down their expenses and only spend money on the most essential goods and
services, they still spend money on beer and parties. While enterprises in all
other business fields try to keep production at moderate level and dare not
think of expanding business at this moment, breweries in Vietnam are
considering scale up their production.
Euromonitor International, in its
latest report, pointed out that Vietnam is the biggest beer drinker in South
East Asia, with 2.6 billion liters of beer consumed in 2011. The position of
Vietnam has also been recognized by the Japanese Kirin Holdings which says that
Vietnam is among the 25 countries with the highest levels of beer consumption.
Breweries prosper even in crisis
When programming the development
of the drink industry by 2010, the Ministry of Industry and Trade predicted
that the beer output would reach 2.7 billion liters of beer by 2010.
Two years after the development
strategy was approved, the ministry raised the estimated beer output by 2010 to
3 billion liters after considering the real situation. With the adjustment, the
beer consumption per capita level of Vietnamese people is 28 liters per annum.
In 2001-2007, the brewery
industry developed so strongly with the growth rate of 13.11 percent per annum
on average. The output soared from 1.29 billion liters in 2003 to 2 billion in
2008. The consumption per capita level also increased from 10.04 liters in 2000
to 21.65 liters in 2007.
Even in 2008, the record high
inflation rate of approximately 20 percent could not force people to spend less
money on beer. The national economy has fallen into recession since 2009,
forcing people to fasten their belt. However, Vietnamese people never think of
giving up drinking.
Habeco in the north and Sabeco in
the south, the two big guys in the brewery industry, both have reported
satisfactory business results for the first half of the year. Habeco has
reported the 10.3 percent increase in turnover in comparison with the same
period of the last year, while Sabeco’s figure was nine percent.
Vietnam drinks 4.4 billion liters of beer by 2015
Economists believe that the
investments in the drink industry can bring the profits much higher than other
industries. In 2001-2015, the profit of the industry increases by four folds
with the growth rate of 32 percent per annum. In the drink industry, breweries
prove to be the most profitable enterprises.
Since beer products are imposed
with a luxury tax, local authorities all want to set up breweries in their
localities to have bigger local budgets from the incomes from breweries.
In the first year of the
WTO-period, Vietnam witnessed the boom of the brewery industry with a lot of
merger and acquisition deals carried out and a lot of new breweries established.
In the “brewery race,” some 10
local factories had to shut down one day, because they could not exist in the
market, causing the big waste of billions of dong in investment capital.
However, more investors still
want to jump on the bandwagon, because they can see the high demand in the
market. Meanwhile, Sabeco in June and September started the construction of the
two breweries in Ninh Thuan and Vinh Long provinces.
The watchdog agency has predicted
that by 2015, Vietnam would produce and consume 4.2-4.4 billion liters of beer,
which means every Vietnamese person would drink 45-47 liters of beer a year.
Ten years later, the figure would be 60-70 liters.
Kim Chi
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. Since we are currently changing the platform of www.yourvietnamexpert.com, you may contact us at: sbc.pte@gmail.com, provisionally. Many thanks.
No comments:
Post a Comment