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Nguyen Van Viet, chairman of the Vietnam Beer-Alcohol-Beverage Association What is your assessment of the beer, wine, and spirits market in the past year, along with the efforts of companies to take on new challenges? The beer, wine, and spirits sector has undergone three decades of development. Many years ago it was one of the sectors bogged down in difficulties due to the chronic shortage of input materials, while foreign goods – particularly Chinese items – overwhelmed the domestic market. With the clear-sighted leadership of the government, the sector has gradually consolidated its footing and managed stable on-year growth. From last January, the Law on Prevention and Control of Harms of Liquor and Beer Abuse came into force, and shortly after that was the enactment of a decree featuring heavier sanctions on drivers with alcohol on their breath. After the pandemic approached in March, the sector had almost been paralysed in the wake of these factors. Earlier last year, the tax authorities even delivered a forecast of a possible loss of more than VND30 trillion ($1.3 billion) in tax payments. The sector’s contribution is significant given the fact that each year the alcoholic beverage sector contributes more than VND50 trillion ($2.2 billion) to the state coffers with its revenue doubling that level. From the second quarter last year, the government began to deploy wide-ranging measures to support businesses. Although players in the sector were not direct beneficiaries of this support, improved performance by other sectors is a favour factor to their growth. New circumstances have prompted businesses to adopt innovative measures in order to get ahead. Businesses launched products directly serving consumer needs, for instance the rollout of non-alcoholic drinks and fruit-based beverages that are selling well. These include Saigon Chill and Lac Viet from SABECO, HEINEKEN’s non-alcoholic offering, and Habeco’s canned draught beer. Businesses …

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Restructuring through M&A can take advantage of the understanding local groups have of their markets, Photo: Shutterstock After 10 years of lengthy internal competition, South Korean Lotte Corporation will fully divest Bibica, selling 44.03 per cent or 6.8 million shares and making The PAN Group the largest shareholder in the Vietnamese confectionery maker. The PAN Group has been vying for controlling stakes of Bibica to retain the Vietnamese confectionery brands in the market amid the aggressive expansion of foreign confectionery products. In 2014, Kinh Do sold 80 per cent of its confectionery business Mondelez International, making it the biggest deal in the history of Vietnam’s confectionery industry. After five years of deals, KDC is making its comeback, resurrecting its snack business under the KIDO brand and rolling out its first moon cake products last year. Meanwhile, Thai cement giant SCG Group has completed the acquisition of its seventh packaging company in Vietnam, Bien Hoa Packaging JSC, at a cost of VND2.07 trillion ($89 million). This purchase was commenced through a subsidiary of Thai Containers Group Co., Ltd. (TCG), a 70/30 joint venture between SCG and Japan’s Rengo Co., Ltd. According to SCG’s annual report, the group boasts several local subsidiaries including Alcamax Packaging, AP Packaging, Packamex, Tin Thanh Packaging, and New Asia Industries. The company also holds controlling interests in Vina Kraft Paper, the largest packaging manufacturer in Vietnam. The mergers and acquisitions (M&A) market has been buzzing with activity in retail, consumer goods, real estate, food and beverage sectors, in which growth is driven by the country’s large population and expanding middle-income class. However, the increasing number of deals comes with concern that Vietnamese brands may fade away once foreign investors buy into local companies. Samuel Son-Tung Vu, partner at law firm Bae, Kim & Lee Vietnam, told VIR that there are …

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Nicknamed Little Chicken, Duong made history when beating Thailand's Chatchai Decha Butdee in the 57kg category Tokyo Olympic qualifiers in Jordan last March and becoming the first Vietnamese boxer to qualify for the sporting event in 33 years. But the ongoing Covid-19 outbreak has taken a huge emotional and psychological toll on the 25-year-old boxer. He admitted that he is struggling to make ends meet after local and international tournaments have been postponed. Not to mention, his fighting spirit has somewhat dampened since the pandemic has derailed his training program. "After that victory, I was extremely excited and had been looking forward to competing in the Olympics. I was very disappointed after the event was postponed. Everyone thinks that boxers must wear nerves of steel. But at that stage, my mental health degraded significantly," he said. Even though the Tokyo Olympics is still scheduled to take place this year, Dung shared that competing internationally seems far from coming true due to the outbreak, adding his current goal is winning the National Club Championship in April and National Championship in September. "But with the current Covid-19 situation, it is not known whether or not the tournaments can take place as planned. For boxers like us, just practicing but not getting on the ring is very stressful." Nguyen Van Duong at the VSP Boxing Gym in Ho Chi Minh City's District 1, Vietnam. Photo courtesy of Nguyen Van Duong. After spending his Tet break back at his hometown in northern Bac Giang Province, he and 10 other boxers from HCMC resumed training on Feb. 21. But fighters who have only been doing regular training have not set foot on the boxing ring since then. Dung shared that he and others wake up every day at 5:30 a.m. and begin his day with a 10-12 km run, followed by some 100-200 meters dash training. They then punch sandbags for six to eight sets with each lasting for three minutes. Their morning usually ends …

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