MoIT releases plan and vision for beverage sector

                                                              Photo: Viet Tuan

Production targets set for 2025 and 2035 in ministry plan.

The Ministry of Industry and Trade has released a Decision on the development plan for the beer, wine and beverage sector to 2025 and vision to 2035.

Targets include producing 5.5 billion liters of beer, 350 million of wine, and 15.2 billion liters of beverages (non-alcoholic beverages such as bottled water and soda) and to earn export turnover of $900 million.

Production value in the sector by 2020, 2025 and 2035 is to reach VND90.5 billion ($4 million), VND113.5 billion ($5 billion), and VND167.9 billion ($7.5 billion), respectively. The average growth rate from 2016 to 2019 is targeted at 5.8 per cent, 4.6 per cent from 2021 to 2025, and 4 per cent from 2026 to 2035.

By 2025 the beer brewing capacity in the northern mountainous region is to account for 7 per cent of the country’s total (5 per cent from northwest and 2 per cent from northeast), the Red River Delta 23.3 per cent, the north-central region 24.8 per cent, the central highlands 4 per cent, the southern region 31.4 per cent, and the Mekong Delta 9.5 per cent.

Wine production capacity will be given focus in the Red River Delta, the southern region and the Mekong Delta. The central highlands and north-central region are to develop fruit wine while other regions are to develop white wine and mixed wine.

Production of wine in the northern mountainous region is to account for 9.5 per cent of the country’s total by 2025 (4 per cent in the northwest and 5.5 per cent in the northeast), the Red River Delta 29.5 per cent, the north-central region 17 per cent, the central highlands 7.5 per cent, the southern region 22.5 per cent, and the Mekong Delta 14 per cent.

Beverage capacity in the northern mountainous region is targeted to account for eight per cent of the country’s total by 2025 (4.5 per cent in the northwest and 3.5 per cent in the northeast), the Red River Delta 22 per cent, the north-central region 19.5 per cent, the central highlands 2.5 per cent, the southern region 31 per cent, and the Mekong Delta 17 per cent.

According to the Ministry’s plan, total capital requirements from 2016 to 2020 are VND27.3 trillion ($1.2 billion), including VND17.7 trillion ($808 million) for beer, VND791 billion ($43.6 million) for wine, and VND8.8 trillion ($404 million) for beverages.

Most capital will be mobilized from enterprises, banks, the stock market, private investment capital, and foreign investment capital.

Habeco and Sabeco are Vietnam’s two beverage giants. Habeco targets industrial production value of VND10.79 trillion ($484 million) this year, up 8.3 per cent against 2015, with beer sales of 715 million liters, up 2.4 per cent, wine sales of 10.2 million liters, up 38 per cent, and sales of UniAqua bottled water of 2 million liters, an increase of 34 per cent.

Sabeco, meanwhile, targets to sell over 1.5 billion liters of products this year and contribute VND9.2 trillion ($418 million) to the State budget.

Sabeco was Vietnam’s largest beer brewer last year, reporting production of 1.38 billion liters. The No. 2 position was taken from Habeco by Heineken.

by Hai Van / vneconomictimes.com