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Vietnam: Vietnam the market to focus on, instead of boosting export, Sabeco CEO says
Vietnam, among the countries with largest beer consumption, is the market that Sabeco focuses on, instead of boosting exports, said its CEO Lester Tan Teck Chuan.
Export currently accounts for only 1% of Sabeco's revenue, Lester Tan told the company's 2025 AGM on April 24.
The Vietnamese beer industry is now under enormous pressure from declining consumer demand, surging input costs, fierce competition, and the risk of the U.S imposing reciprocal tariffs on some imported materials, he noted.
Sabeco will continue to focus on exploiting the domestic market as a foundation, while improving operational efficiency and promoting innovation initiatives to seize new growth opportunities, the executive added.
Sabeco, the largest brewer in Vietnam, has made use of the declined prices to buy aluminum cans before the enforcement of U.S. reciprocal tariffs.
Lester Tan said one of the major challenges that Sabeco is facing is the risk of U.S. imposition of reciprocal tariffs on aluminum, an important raw material for production of beer cans.
Last year, aluminum prices rose sharply, by about 18%, exerting pressure on production costs. However, since the beginning of 2025, the price has shown signs of cooling down.
Sabeco has proactively signed futures contracts with suppliers to lock in prices, avoiding being passive in the face of market fluctuations.
"Currently, other raw materials have not fluctuated significantly and are guaranteed to meet expectations," said the CEO.
Along with its localization strategy, Sabeco has completed the acquisition of an over 43% stake at Saigon-Binh Tay Beer Group Joint Stock Company (Sabibeco), the owner of the Sagota brand.
Lester Tan said the deal brings three benefits: increasing the output of canned beer and optimize the advantage of its six strategically located plants; improving the profit margin; and expanding its portfolio of affordable products.
In its orientation, Sabeco will focus on four goals: adjusting the product portfolio, improving the efficiency of the supply chain, improving the brand, and ensuring sustainable growth.
The company plans to pay a high dividend in 2025, following the dividend rate of 50% of par value in 2024.
In addition to traditional beer, Sabeco said it has noted the trend of consumers shifting to low-alcohol products. Some products such as 333 Pilsner, Chill and Lac Viet have been launched with alcohol content below 5%.
Although the non-alcoholic beverage market is still small, the company is monitoring the segment and ready to expand it at a suitable time.
Sabeco is focusing on the medium and near-high-end product segments; its products do not focus on the high-end segment, according to the CEO.
In 2024, the company achieved net revenue of VND31,872 billion ($1.22 billion), up 4.6% year-on-year and completing 93% of the year's target.
Profit after tax reached VND4,495 billion ($172.68 million), up 5.6% and equivalent to 98% of the year's target.
Sabeco set a net revenue target of VND31,641 billion for this year, down 1%, while profit after tax is expected to reach VND4,835 billion ($185.74 million), up 8%.
Sabeco said the 2024 results were derived from three strategic pillars: optimizing commercial operations, improving supply chain and production efficiency, and a strong commitment to ESG (environment-society-corporate governance).
Regarding the supply chain, Sabeco is accelerating the modernization of its logistics and warehouse systems. The company launched the Beer Industry Research and Development Center (SRC) in November 2024, aiming to improve product quality, apply modern technology, and maintain the position of Vietnamese beer brands in the international market.
In the ESG area, the company has expanded its use of solar energy, improved water efficiency, and worked closely with local governments on community development programs, it highlighted
With the orientation of focusing on the domestic market, Sabeco aims to maintain stable growth, consolidate its position in Vietnam, and build foundations for the next steps of development, it added.
Sabeco’s largest shareholder is ThaiBev-owned Vietnam Beverage Company Limited, which holds a 53.6% stake in the biggest brewer in Vietnam.
Since acquiring Sabeco in late 2017, by early April, the Thai firm had collected VND12.03 trillion ($479.67 million) in dividend payouts, equivalent to 11% of its initial investment.
Sabeco, listed on the Ho Chi Minh City as SAB, closed on April 25 at VND49,500 ($1.9) a share.
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