The beverage industry in Vietnam has existed for a long time, however it started developing significantly over a past decade, underpinned by several sectors:

– The policy of innovation

– The participation in FTAs

– The recovery and remarkable development of the economy

– The growth of international tourism and FDI

Along with the whole development of the economy, Vietnam  beverage market has also expanded and gradually met the domestic increasing demand. Overall, the beer and soft drink sectors still take up major shares, while alcohol holds the small proportion in the whole industry.

However, the beer industry has showed signs of saturation due to the dependence on material import and the dominance on the premium segment of FDI Corporations. The soft drink industry has great developing potential with the advantage of both quantity and material quality, but it is still lacking stability. The market has seen the appearance of many foreign players with 4 in 5 largest enterprises in the market is FDI businesses, holding nearly 50% of market shares.

Alcohol market size is small, however the domestic wine market is full of potential as it is favoured by clients in middle-class. Domestic Spirits market is underdeveloped, dominated by premium Spirits from Europe and the America.

Among top enterprises in the industry, there are only a few domestic ones with large-scale and strong brands able to compete with FDI firms. The rest is considered insignificant with weak competitiveness. However, enterprises are generally maintained stable trade with revenue upslightly thanks to the increase in sales costs.

In the coming period, the potential of the industry is expected to be very significant due to the expanding of the market and the development of related sectors such as tourism and retails. Besides, by analysing the SWOT and 5-forces analysists, there are still existing the risks which threaten the success of businesses joining the market.

Executive Summary 3
1 Business Environment 6
1.1 Macroeconomy 6

Figure 1. GDP Growth, 2010-6 months/ 2016

Figure 2. Monthly CPI Fluctuations, 2014-6/2016

Figure 3. Consumer Confidence Index

Figure 4. VND/USD Exchange rates

Figure 5. Vietnam import-export turnover, 2010-6 months/2016e

Figure 6. Beverage industry contribution to GDP 2010-2015

Figure 7. CPI of Vietnam and Beverage & Tobacco industry, 2015

Figure 8. Population and working age structure in population, 2010-2015

Figure 9. Average disposable income and expenditure per capita of Vietnam, 2010-2015

Figure 10. Retail sales in Vietnam, 2011 – 2017F

 
1.2 Legal Barriers 12

Figure 11. Beverage export volume, 2010-2014

Figure 12. Enterprises in beer section 2010-2014

Figure 13. Profit before tax of Beverage industry

Figure 14. Production growth rate of Beer sector 2010-2014

Table 1. Special consumption taxes on alcohol and beer from 2016

 
1.3 Free Trade Agreements 17
Table 2. Vietnam’s commitments in TPP on import duty  
2. Industry Overview 23
2.1 Global Market 23
2.1.1 Beer 24

Figure 15. Production and Consumption of Barley in the world, 10/11-15/16

Figure 16. Weekly Barley price in the UK from 2011 to 2016

Figure 17. Market share of 5 largest barley producers in the world 2015-2016

Figure 18. Barley export volume to produce Malt in the world

Figure 19. Weekly Barley (for Malt) price in the UK, 2011-2016

Figure 20. Malt capacity in Europe and the world, 2010-2015

Figure 21. Malt export in Europe and the world, 2010-2015

Figure 22. Cultivation area and production of Hops in the world, 2006-2015

Figure 23. Monthly hops price in Washington, D.C, 1981-2015

Figure 24. Market share of the 5 largest Hops producers, 2015

Figure 25. Global Hops export, 2010-2014

Figure 26. Market share of 5 largest hops exporters 2014

Table 3. Production and Growth Rate of Beer in seven regions of the world, 2014

Figure 27. Beer production and consumption in the world 2010-2014

Figure 28. Beer import export volume in the world, 2010-2014

Table 4. 10 countries with highest beer import and export value of Beer in the world

Table 5. Countries with the most rapid import and export growth of Beer 2010-2014

Figure 29. Production market share of five leading beer producers in the world 2014

Figure 30. Consumption market share of five leading beer producers in the world 2014

Table 6. 10 most valuable Beer brand in the world 2014-2015

 
2.1.2 Alcohol 35

Figure 31. Vineyard  area for Wine production, 2005 – 2015

Table 7. Top 5 countries with highest vineyard are within EU

Table 8. Top 5 countries with highest vineyard are outside EU

Figure 32. Grape production for all purposes, 2010 – 2014

Table 9. Grape production by purpose, 2014

Figure 33. Production and Consumption of Wine in the world, 2010-2015

Figure 34. Market share of 5 largest Wine manufacturers in the world, 2015

Table 10. Top 5 largest Wine manufacturers in the world

Figure 35. Market shares of 5 largest wine consuming countries, 2015

Table 11. 5 largest Wine consuming countries, 2015

Figure 36. Export volume and value of Wine, 2000-2015

Table 12. Main Wine exporters

Table 13. Main Wine importers

Figure 37. Spirits consumption in the world, 2009-2015

Figure 38. Major Spirits importers in the world, 2015

Table 14. Popular types of Alcohol in the  world, 2015

Table 15. Popular Alcohol brand name in the world, 2015

Table 16. Top 10 Alcohol trading companies in the world, 2015

Table 17. Top 10 Alcohol producing countries in the world, 2015

 
2.1.3 Soft Drink 44

Figure 39. Beverage revenue, 2010-2014

Figure 40. Soft Drink export value and volume, 2010-2014

Figure 41. Soft drinks revenue by categories 2014

Table 18. 10 most valuable beverage brands in the world 2014-2015

Figure 42. Carbonated Drinks

Figure 43. Energy Drinks and Sport Drinks

Figure 44. Juice

Figure 45. Bottled Water

 
2.2 Vietnam Market 47

Figure 46. Domestic production and consumption, 2010-2015

Figure 47. Export & Import of Beverage 2010-6 months/2016e

Figure 48. Structure of production value by sector, 2010-2015

 
2.2.1 Beer 50

Table 19. Table Malt and Hops import, 2010-2014

Figure 49. Malt supply for Vietnam, 2015

Figure 50. Malt import, 2010-2015

Figure 51. Hops import, 2010-2015

Figure 52. Hops supply for Vietnam by country, 2015

Figure 53. Production and Consumption of domestic Beer sector, 2010- 6 months/2016e

Figure 54. Consumption of Beer sector by category, 2015

Figure 55. Beer inventory, 2011-6 months/2016e

Figure 56. Beer inventories by category, 2011-2015

Figure 57. Revenue of domestic consumption by enterprises, 2015

Figure 58. Beer import-export 2010-6 months/2016e

Figure 59. Major beer export markets of Vietnam 2015

Figure 60. Major beer import markets of Vietnam 2015

Figure 61. 10 largest beer importers of Vietnam 6 months/2016

Figure 62. 10 largest beer exporters of Vietnam 6 months/2016

Figure 63. Conditions of transport for importing beer, 6 months/2016

Figure 64. Conditions of transport for exporting beer, 6 months/2016

 
2.2.2 Alcohol 58

Figure 65. Domestic production and consumption of Alcohol, 2010-2015e

Figure 66. Revenue structure of Wine and domestic Spirits, 2010-2015e

Figure 67. Inventory of Wine, Spirits and the Alcohol sector, 2010-2015e

Figure 68. Market share of Spirits consumption volume by leading enterprises, 2014

Figure 69. Market share of Spirits consumption volume by leading brands, 2014

Figure 70. Market share of consumption volume by manufacturers of Still Light Grape Wine, 2014

Figure 71. Market share of consumption volume by Wine manufactures (Wine fermented from other fruits than grape), 2014

Figure 72. Alcohol import export, 2010-6 months/2016e

Figure 73. Wine import and export, 2010-6 months/2016e

Figure 74. Spirits import and export, 2010-6 months/2016e

 

Figure 75. Wine supply for Vietnam by country, 2015e

Figure 76. Largest Wine importers of Vietnam 2015

Figure 77. Consumption markets of Vietnam spirits 2015

Figure 78. Supply market of Vietnam spirits 2015

Figure 79. 10 largest spirit impoters of Vietnam, 6 months/2016

Figure 80. 10 largest spirit expoters of Vietnam, 6 months/2016

Figure 81. Conditions of transport for importing spririt, 6 months/2016

Figure 82. Conditions of transport for exporting spririt, 6 months/2016

Figure 83. 10 largest winet impoters of Vietnam, 6 months/2016

Figure 84. 10 largest wine expoters of Vietnam, 6 months/2016

Figure 85. Conditions of transport for importing wine, 6 months/2016

Figure 86. Conditions of transport for exporting wine, 6 months/2016

2.2.3 Soft Drink 70

Figure 87. Production and consumption of domestic Soft Drinks, 2010-6 months/2016e

Figure 88. Revenue of Soft Drinks, 2015

Figure 89. Inventory of Soft Drinks, 2010-6 months/2016e

Figure 90. Proportion of Inventory of Soft drink, by category, 2010-2015

Figure 91. Import-export of Soft Drinks, 2010-6 months/2016e

Figure 92. Import export of Juice, 2010-6 months/2016e

Figure 93. Import export of Carbonated Drink, 2010-6 months/2016e

Figure 94. Consumption of Vietnam Juice by countries, 2015

Figure 95. Suppliers for Vietnam Juice by country, 2015

Figure 96. Consumption markets of Vietnam Soft Drink 2015

Figure 97. Market supplier of Vietnam Soft Drink 2015

Figure 98. 10 larges soft drinkt impoters of Vietnam, 6 months/2016

Figure 99. 10 largest soft drink expoters of Vietnam, 6 months/2016

Figure 100. Conditions of transport for importing soft drink, 6 months/2016

Figure 101. Conditions of transport for exporting soft drink, 6 months/2016

Figure 102. 10 larges juice impoters of Vietnam, 6 months/2016

Figure 103. 10 largest juice expoters of Vietnam, 6 months/2016

Figure 104. Conditions of transport for importing juice, 6 months/2016

Figure 105. Conditions of transport for exporting juice, 6 months/2016

Figure 106. The number of Soft Drinks enterprises, 2010-2015

 
2.3 Industry Development Planning 87
2.4 Prospects and Forecasts 89
2.4.1 Industry driving forces 90
2.4.2 Forecast 92

Table 20. Forecast of consumption value of sectors in Beverage industry (including domestic and imported products), 2015-2018

Table 21. Beer factories built and launched 2015

Table 22. Soft Drink factories under construction and launched in 2015

Table 23. Roadmap for FDI enterprises to access Vietnam market

Table 24. Projects and Planning on Retail sector has been doing by FDI enterprises in Vietnam

 
2.5 Industry Risks 100
2.5.1 SWOT Analysis 101
Table 27. SWOT analysis  
2.5.2 5-forces Analysis 102
2.5.3 Business Risks in the Industry 105
3. Enterprise Analysis 109
Table 25. List of 13 typical enterprises in Vietnam Beverage industry, 2015  
3.1 Revenue & Profit Analysis 111

Figure 107. The business situation of beverage enterprises, 2014-2015

Figure 108. Gross Profit and Gross Profit Margin of Beverage enterprises, 2015

 
3.2 Operating Ratios 115

Figure 109. Receivable Turnover of Beverage Enterprises, 2015

Figure 110. Inventory Turnover of Beverage Enterprises, 2015

Figure 111. Asset Management Ratio of Beverage Enterprises, 2015

 
3.3 Financial Strength 118

Figure 112. Liquidity of Beverage Enterprises, 2015

Figure 113. Solvency of Beverage Enterprise, 2015

 
3.4 Management Effectiveness 121
Figure 114. ROA and ROE of Beverage Enterprises, 2014-2015  
4 Appendix 123

– Saigon Beer-Alcohol-Beverage JSC.
– Hanoi Beer Alcohol and Beverage JSC.
– Vietnam Brewery Limited Company
– Thanh Hoa Beer JSC.
– Aroma Beverage JSC.
– AvinaA JSC.
– Vietnam Halico JSC.
– LamDong Foodstuffs JSC.
– Thang Long Wine JSC.
– URC Vietnam Company Limited
– Tan Hiep Phat Beverage Group
– Chuong Duong Beverages JSC.
– Coca Cola Beverages Vietnam Ltd.
– Dona Newtower Natural Drink And Food JSC.
– Iternational Foods JSC.