Vietnam: Vietnamese breweries produced about 13.7 million hl of beer in 2004, according to the Vietnam Beer and Beverage Association. The association estimated Vietnam beer production to rise to 15 million hl in 2005, a figure originally expected to be reached in 2010. At the current rate of investment, production capacity would reach 2.5 billion litres by 2010, Nguyen Van Kiet, chairman of the Vietnam Beer and Beverage Association, said. However, consumption is just below 10 million hl a year and exports, a modest 0.03 million hl.

In Vietnam 323 breweries located in 49 cities and provinces brewed beer in 2004. According to a news statement of Asia Pulse from March 7, large amounts of money are being pumped into new beer breweries, and with domestic demand not expected to rise any time soon, the market is set to be awash, Ho Chi Minh City market experts have warned.

Among the companies investing in expanding capacity is the Sai Gon Beer Company (Sabeco). Chairman Nguyen Ba Thi said the investment plan envisaged an increase in output by many of its affiliates. In 2004, the company's beer output was 403 million litres, of which 268 million litres were produced at its main brewery in Ho Chi Minh City and the remainder at affiliated plants, Thi said. The latter include Phu Yen (in Phu Yen Province), Dung Quat (Quang Ngai), Ha Tinh, Thanh Hoa, Nghe An, Ha Nam, Dong Xuan (Phu Tho), Viet Tri (Vinh Phuc), Huong Sen (Thai Binh), and Phuong Nam (HCM City), he said.

The Beer Can Tho and Beer Ha Tinh breweries are set to increase capacity from the current 15 million to 50 million litres a year each and the Beer Ha Tinh facility will increase capacity from 15 million to 30 million litres. The company is also planning to build many new large breweries. Among them would be a 100 million-litre brewery in Ho Chi Minh City's Cu Chi rural district, a 15 million-litre brewery in the southern Bac Lieu Province and a 50 million-litre brewery in Quang Nam, Thi said.

The Hanoi Beer and Beverage Corporation (Habeco) announced plans to build a 100 million-litre plant in the northern Vinh Phuc Province and expand its Thanh Hoa Brewery. The corporation also plans to acquire two beer companies in Hai Duong and Quang Binh provinces.

Foreign investors are in the race too - the Singapore-invested Beer Vietnam has already applied to the Government to increase production from 150 million to 230 million litres.

The Danish-invested Beer Hue Company has announced a project to build a new 50 million-litre brewery in the Phu Bai Industrial Park.

The Dong Ha-Huda Beer Joint Venture, between Vietnam and Denmark, plans to increase annual capacity by 30 million litres and Australia's Foster Beer Company will expand its plant in Da Nang to increase annual capacity from 45 million to 75 million litres.

Other famous foreign beer companies from the US, South America and Denmark have also researched the Vietnamese market and are all set to establish joint ventures with local firms to produce beer for both domestic consumption and export.

Recently, the Vietnam Milk Joint Stock Company also announced a VND300 billion (US$19.1 million) investment to build a brewery.

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