After gaining sweet fruits for years, giant beer and beverage companies in Vietnam are facing losses due to not only the ongoing health crisis, but also tightened drink-driving penalties. 

The Decree 100 which imposes heavy fines on drunk drivers as well as the fears amid Covid-2019 have affected the brewing industry.

Despite tripling expenses on advertisement and promotion programmes in the third quarter, Habeco still reported a decrease in net profit.

Vietnamese businesses have been warned of being taken over by foreign conglomerates.

VietNamNet Bridge - Sabeco, the biggest Vietnamese brewer, has fallen into Thai hands, while Carlsberg is stepping up the process to become a controlling stakeholder in Habeco. 

With 4 billion liters of beer consumed every year, Vietnam’s market is a promising one for investors. However, many of them have faced problems.

VietNamNet Bridge - Euromonitor, in its latest report, commented that Vietnam will be the next major battlefield for brewers. 

According to Ban Viet Securities (VCSC), the Vietnamese beer market is now controlled by Sabeco which holds 40 percent of market share, Heineken 25 percent, Habeco 18 percent and Carlsberg 10.8 percent. 

VietNamNet Bridge - Sabeco holds the largest market share, but it is Heineken which dominates the Vietnamese beer market. 

VietNamNet Bridge - Foreign investors have shown their intention to buy a stake in Habeco and Sabeco, but Vietnamese experts say that local buyers should protect the two brands.

VietNamNet Bridge - Many foreign investors that want to become strategic partners of large state-owned conglomerates are finding it difficult to negotiate prices. 

FTAs not only have helped reduce input costs of beer production, but have also turned Vietnam into a jumping board for foreign breweries to conquer the Southeast Asian and Asia Pacific markets, according to FPT Securities.

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. 

VietNamNet Bridge - Analysts believe that now is the the right time for the state to divest Sabeco shares because the shares are going for a good price.

VietNamNet Bridge - Beer companies have been prospering in Vietnam, a large market with 90 million people and consumption of 3.8 billion liters of beer in 2016.

While SCIC can sell only 60 percent of Vinamilk shares, the nation’s leading dairy producer, domestic investors are queuing up to buy shares of Sabeco, increasing the brewery’s share prices.

VietNamNet Bridge - Foreign brewers often set up joint ventures with Vietnamese partners and then take over the capital contribution from the Vietnamese partners. Why do they have to take this roundabout path to enter the market?

VietNamNet Bridge - The Vietnamese beer market is controlled by four big brewers, with each of them ruling unchallenged over an area for many years.

VietNamNet Bridge - After news about Sabeco’s listing was released, its share prices soared by twofold to VND130,000 on the OTC market.