Vietnam: The construction of new brewery starts in Ho Chi Minh suburb

The Saigon Beer Beverages Company (Sabeco) started on December 25 the construction of a brewery with a capacity of 100 million litres per year in Ho Chi Minh City's suburban Cu Chi district, Vietnamese media communicated.

The project was launched in the presence of Prime Minister Phan Van Khai, Industry Minister Hoang Trung Hai and leaders of HCM City. Prime Minister Phan Van Khai pressed the button on construction equipment to kick off the project.

Sabeco is investing about VND 1.9 trillion (US$119 million) into the 50ha project. The new brewery, Sai Gon-Cu Chi, will be equipped with the most state-of-the-art German brewing technology by German beverage specialist and contractor company Krones, under an engineering-procurement-construction contract (EPC).

The first batch of beer is expected to be produced about 18 months later in June 2007. In the immediate future, HCM City will allocate 10 ha for the 50-ha project in 2006.

Speaking at the ground-breaking ceremony, PM Khai said that producing 100 million litres of beer is the annual capacity of the project in its first phase, which will be increase in the second phase to 1 billion litres a year to provide not only for the domestic market, but also for export.

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