Vietnam: HABECO wins International Asia Pacific Quality Award’ 06

Beer and alcohol maker Hanoi Beer, Alcohol and Beverage Corporation (HABECO) has won the prestigious International Asia Pacific Quality Award’ 06 given to large players in their respective countries in select industries, Thanh Nien released November 03.

The Hanoi Beer-Alcohol & Beverage Corp. – makers of the popular Hanoi beer – was the only Vietnamese firm this year to be given the Best of Class Distinction award in the large-scale manufacturing category.

The annual award is given by the Asia Pacific Quality Organization (APQO), a non-profit organization bringing together leading quality professional societies from countries in the Asia-Pacific region.

The award is open only to organizations that have won national quality awards in their own countries.

It comes as a ringing endorsement of the competitiveness and economic sophistication of the beverage producer, indicating its sustained capability to satisfy customers and shareholders.

In a strategic move of May 20 2005, number 1 Danish brewer Carlsberg has signed a strategic agreement (Memorandum of Understanding) with HABECO. The intention was in cooperation with HABECO's management and the Vietnamese Ministry of Industry to create a future partnership and a joint development programme.

The partnership which made HABECO and Carlsberg a market leader in Northern and Central Vietnam was expected to materialize in a number of areas during 2005 among which joint investment in a new brewery was the most significant.

Similar to other Eastern Asiatic countries the beer market in Vietnam is rapidly growing from a very low starting point. The actual consumption level amounts to about 13 litres per capita (compared to about 106 litres in Denmark and averagely about 80 litres per capita in the developed countries in general). As reports stated July 31, the beer brewing industry has become an attractive field for investment with more projects awaiting licensing and many operational plants planning to increase production. In 2005, Vietnam produced 15 million hl of beer, an increase of 25% over the target volume. The figure is expected to rise to 17 million hl in 2006.

The brewing industry has posted impressive growth of 8-12% per annum over the last five years. In 2004, total beer output reached 14 million hl or 17% more than the volume targeted for 2005. The average consumption volume per capita now is 17 litres a year, double the volume in 1997.

It is expected that by 2010, total beer output would be 25 million hl/year, or output per capita of be 28 l/year.

The biggest breweries in Vietnam are located around the densely populated urban centres in the country. HABECO is the dominant player in the fast growing northern market. HABECO is owned directly by the Vietnamese state and is scheduled to enter into a process of privatisation during which partnerships with foreign investors is encouraged.

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