Foreign beermakers fight for more of Vietnam’s thriving market

(Aug 29): Heineken NV’s expansion of its production in Vietnam by taking over a brewery from rival Carlsberg A/S highlights growing interest by global beer brands to quench the thirst of about 70 million locals in one of the world’s fastest-growing economies.

With a thriving street-side cafe and bar culture, young population and rising middle class, Vietnam is luring brewers such as Heineken, Thai Beverage PCL and Asahi Group Holdings Ltd. to expand in the country. Interest is also being piqued by the government’s plans to offload lucrative assets, with Carlsberg in line to more than double its stake in state-run Hanoi Beer Alcohol Beverage Corp. or Habeco.

“The Vietnamese beer market is of great interest to other international players, such as those from Japan and Thailand,” said Dominic Scriven, chairman of Dragon Capital which manages about US$1.5 billion ($2 billion) of investments. “This in general is reflective of greater strategic interest across many sectors from foreign investors.”

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