Annual beer consumption in Vietnam, that is taking the second position in beer consumption in the Southeast Asian Region, after Cambodia, is expected to increase to 4 billion litres by 2015, according to the nation’s industry and trade ministry (MoIT). The country’s beer consumption has risen by an average of 20% per year since 2003. Last year around 2.7 billion litres of beer were sold in the domestic market, according to figures released by MoIT .

Leading Vietnam brewers like Saigon Beer Alcohol and Beverage Corporation (Sabeco) and Habeco which account for about 35% and 20% respectively of the country’s beer market saw a great expansion in demand for beer. “We expect to see the growth rate further with 20% in 2011,” Nguyen Quang Minh, general director of Sabeco said earlier this year. To meet the rising demand, beer producers in Vietnam have proposed to increase production capacity. The Vietnam Brewery Limited (VBL), brewer of several beer brands such as Heineken, Fosters, Tiger and Larue and member of Singapore-based APB Group Vietnam, in February proposed to boost its production. However last year total production capacity of APB Group Vietnam’s breweries reportedly reached 470 million litres and its breweries all ran at full capacity. Last week APB announced that it is to increase production capacity in its brewery in Ho Chi Minh City from 2.8 million hl to 4.2 million hl.

Last year beer imports were also increasing, with imports via official channels of popular brands like Heineken, Lucky, Corona, Budweiser and Bavaria reaching 40 million litters, according to reports. Cross-border import figures were said to amount to approximately 100 million litres. Some international beer companies such as Sapporo, San Miguel and Foster’s have already found their ways in Vietnam.