E-Malt.com News article: Vietnam: Ministry of Industry and Trade appoints new chairman at Sabeco

The Vietnam Ministry of Industry and Trade has appointed Vo Thanh Ha, former chief of the ministry office and secretary to the minister, as chairman of Saigon Beer, Alcohol and Beverage Corporation (Sabeco), representing the state ownership in this business, DealstreetAsia reported on September 29.

The news was initially reported by the Bao Dau tu (Investment Newspaper).

Ha replaces Phan Dang Tuat, the former 58-year-old chairman, who resigned last month. Bui Ngoc Hanh, a board member at Sabeco, then temporarily chaired the company.

Ha, born in 1974, used to head the ministry office from February 2015. Prior to that position, he served as the minister of industry and trade’s secretary.

Earlier in February this year, the ministry also appointed Vu Quang Hai, 29, to be the brewer’s deputy CEO and board member.

“The selection of young people for the leading roles in Vietnam’s largest beer producer implies that the ministry wants to see innovative changes from the corporation,” the Bao Dau tu report commented.

The state-owned brewer is facing aggressive competition from local private and foreign brands. Sabeco still leads the local market which saw production of around 1.4 billion litres of beer in 2015. However, the distance between Sabeco and foreign brands such as Heineken and Calsberg has narrowed, according to a statement by the Vietnam Beer, Alcohol and Beverage Association.

“Intensive competition has caused the consumption of our flagship brands, 333 and 355, to decrease compared to last year,” Tuat said, during Sabeco’s shareholder meeting in May. The brewer’s market share has declined from 46 to 44 per cent, he added.

The beer market in Vietnam, which reached a size of $4.56 billion in 2014, is expected to grow at 8-10 per cent in 2015, being the top beer consumption market in Southeast Asia. That is a fertile market for foreign beer companies. The Ministry of Industry and Trade is planning to reduce its ownership in Sabeco from some 90 to 36 per cent and it has attracted bids from nine private firms keen to buy stakes in Vietnam’s largest brewer.

Although the list of these nine investors has not been unveiled, it might include domestic and overseas players such as Thai Beverage Group, Singha Corporation, Japan’s Asahi Breweries, Heineken, SABMiller, Duc Binh Group, Hung Thinh Diamond, Lien Viet Group, Saigon Securities Inc, and Sunshine Consulting and Investment JSC.


29 September, 2015