Vietnam's Alcohol, Beverage Industry to Get Gov't Boost

HANOI—The Vietnamese Ministry of Industry and Trade has recently approved a master plan for the development of the alcohol, brewery and beverage industry to 2015 and beyond.

Under the plan, the industry is expected to post a growth rate of 12 percent until next year. The figures for 2011-15 and 2016-25 are set at 13 percent and 8 percent, respectively.

The industry will churn out 2.5 billion litres of beer, 80 million litres of liquor and 2 billion litres of beverage next year. Up to next year, the industry will earn about US$70-80 million annually from exports.

By 2015 and 2025, the industry's output will reach 4 and 6 billion litres of beer, 188 and 440 million litres of liquor and 4 and 11 billion litres of beverage, respectively.

Industry and Trade Minister Vu Huy Hoang said that to meet the targets, his ministry estimated the alcohol, brewery and beverage industry would need investment capital of about VND74 trillion ($4.15 billion), of which the brewery industry alone would need roughly VND52 trillion, from 2008-25.

As for brewery production, part of the estimated capital would be used to upgrade and expand existing plants. The rest would go to the construction of new plants, each with a capacity of more than 100 million litres per year.

However, to avoid rampant investment that can cause waste and damage to the whole industry, the master plan requires projects whose annual output is more than 50 million and 200 million litres to be approved by Industry and Trade minister and the Prime Minister, respectively.

To have enough capital, the industry will call on all economic sectors to pour money into the industry. The minister estimated most capital would come from domestic and foreign bank loans and the issue of shares and corporate bonds.

Under the master plan, the industry will focus on building a number of national trademarks to be able to compete against products from foreign competitors.

The industry will also boost co-operation with famous foreign brands to be able to churn out high-class products to meet domestic demand and to gradually boost exports.

Besides the provision of market information, the organization of annual exhibitions was also mentioned in the master plan to aid alcohol, brewery and beverage producers to introduce their products in the domestic market.

Assistance to the producers to participate in foreign trade fairs under the national trade promotion programs will also be determined as a measure to help the industry increase exports.

The master plan also mentions measures to develop human and material resources for the industry so the industry can develop sustainably in the next two decades.