GlobalData: Sabeco sale highlights Vietnam’s beer market opportunities

18-Dec-2017 - United Kingdom

The Vietnamese government’s sale of a majority share in the two largest state-run breweries: Saigon beer Alcohol Beverages Corporation (Sabeco) and Hanoi Alcohol Beer and Beverages Corporation (Habeco); represents a key opportunity for large foreign brewers, to take a stake in Vietnam’s rapidly growing beer market, says GlobalData, a leading data and analytics company.

According to the company, beer volumes in Vietnam grew by 7.4% in 2016 and are set to remain strong with a forecast compound annual growth rate of 6.57% between 2015 and 2020.

The sale of a 53.6% stake in Sabeco, was announced on December 18^th with Thai Beverage seeking to purchase all shares, totalling nearly $5 billion. Habeco is also expected to be sold early next year.

Peter Hays, Consumer Analyst at GlobalData comments: “The Vietnamese market is enticing for large international beer corporations experiencing tepid volume growth in North America and Western Europe. Vietnam benefits from a large youthful population and a strong social drinking culture oriented around beer”

Vietnam is one of the fastest growing economies in Asia and is expected to meet its target of 6.7% economic growth this year. The Vietnamese the government is therefore keen on a high valuation of Sabeco and Habeco, and is wary of excessively raising taxes or other restrictions on consumption.

Hays concludes: “Strong economic growth, liberalizing economies, and a growing consumer class across southeast Asia will increasingly draw in large international players across consumer goods industries. Brands seeking to enter the region, will have to navigate a complex and sometimes turbulent political space.”

https://www.yumda.com/en/news/1152792/globaldata-sabeco-sale-highlights-vietnams-beer-market-opportunities.html