Vietnam’s beer industry rebounds as profits surge

Five of them swung from losses into the black.

The country’s two major brewers, Sabeco and Habeco, continued to generate the lion’s share of industry revenue and profits.

The two companies recorded a combined VND18.1 trillion (US$694.4 million) in net revenue and VND2.8 trillion ($107.4 million) in after-tax profit in the first six months of the year.

Compared with the same period last year, revenue rose 10.2 percent and profit increased 25.6 percent.

Sabeco and Habeco accounted for 91 percent of the market capitalization of beer and alcohol companies listed on Vietnam’s stock market.

Their consolidated financial statements also included their subsidiaries.

In percentage terms, the strongest growth came from Saigon-Song Lam Beer JSC.

The company reported VND52.8 billion ($2.02 million) in after-tax profit, 9.1 times higher than the VND5.8 billion ($222,563) recorded a year earlier.

Hanoi-Thanh Hoa Beer JSC also turned around, moving from a VND4.4-billion ($168,655) loss to a VND2.9-billion ($111,050) profit.

Not all companies shared the recovery.

Hanoi Liquor and Beverage JSC reported a VND1.9-billion ($72,830) loss after earning VND485 million ($18,600) in the first half of last year.

According to the Vietnam Beer-Alcohol-Beverage Association, production and consumption in the first six months of 2026 increased year on year, supported by a prolonged period of hot weather and companies’ efforts to adapt to market conditions.

However, the association said the recovery remained uneven across beer, alcohol, and beverage segments.

Excise tax to increase in 2027

The revised Special Consumption Tax Law No. 66, approved by the National Assembly on June 14, 2025, took effect on January 1, 2026.

During 2026, beer and spirits with an alcohol content of 20 percent or higher remain subject to the existing 65-percent tax rate.

From January 1, 2027, the tax rate on both products will rise by five percentage points annually, reaching 70 percent in 2027 and 90 percent by 2031.

Spirits with an alcohol content below 20 percent will follow a similar trajectory, with the tax rate rising from 35 to 60 percent.

At its 2026 annual general meeting of shareholders, Sabeco identified three major challenges for the year, including rising input costs stemming from conflicts in the Middle East, the roadmap for changes to the excise tax and intensifying competition for market share.

The association noted that the beverage industry contributes more than VND60 trillion ($2.3 billion) to the state budget each year.