Vietnam & Denmark: Carlsberg joins a new strategic cooperation with Hanoi Beer Company
Danish brewing force, Carlsberg A/S, announced on May 20 it has signed a strategic agreement (Memorandum of Understanding) with the Vietnamese brewery Habeco, Hanoi Beer Company, in Hanoi. The intention is in cooperation with Habeco’s management and the Vietnamese Ministry of Industry to create a future part-nership and a joint development programme.
The partnership which will make Habeco and Carlsberg a market leader in Northern and Central Vietnam is expected to materialize in a number of areas during 2005 among which joint investment in a new brewery is the most significant.
Similar to other Eastern Asiatic countries the beer market in Vietnam is rapidly growing from a very low starting point. The actual consumption level amounts to about 13 litres per capita (compared to about 106 litres in Denmark and averagely about 80 litres per capita in the de-veloped countries in general). The future annual growth rate of beer production in Vietnam is estimated to about 8%.
The biggest breweries in Vietnam are located around the densely populated urban centres in the country. Habeco is the dominant player in the fast growing northern market. Habeco is owned directly by the Vietnamese state and is scheduled to enter into a process of privatisa-tion during which partnerships with foreign investors is encouraged.
Carlsberg has been involved in the Vietnamese beer industry since 1993 through the forma-tion of a joint venture with Viet Ha Brewery owned by the Hanoi Peoples Committee. In 1995 the second Carlsberg joint venture was started through cooperation with the Hué Peoples Committee in Hué Brewery Ltd. Carlsberg owns 60% of South East Asia Brewery, which is the name of the Hanoi operation, and 50% of Hué Brewery Ltd.
Jesper B. Madsen, SVP for Carlsberg in Asia says: "The engagement with Habeco is a very important part of our strategy to develop our business in Asia through partnerships and in-vestments in market leading companies."
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