The Ministry of Industry and Trade (MoIT) late last week transferred the State ownership in Saigon Beer Alcohol Beverage Corp (Sabeco) to the State Capital Investment Corporation (SCIC).

The value handed over to SCIC was more than VND2.3 trillion (US$99.3 million), accounting for 36% of Sabeco’s charter capital, or more than 230 million shares.

Sabeco has become the first enterprise to complete such a transfer among 14 companies that must transfer State capital to SCIC before August 31 according to a prime minister decision issued in June.

Up to now, SCIC has taken over VND21.9 trillion (US$945.3 million) in State capital in 1,068 enterprises.

After the transfer, SCIC will have to divest all State capital from Sabeco in accordance with the Prime Minister’s decision.

Speaking at the handover ceremony, Deputy Minister of Industry and Trade Cao Quoc Hung said the transfer will not interrupt production or business activities of Sabeco and will comply with the current regulations.

Meanwhile, SCIC Chairman Nguyen Duc Chi said SCIC would create the best possible conditions for Sabeco to continue to grow, bringing investment efficiency to all shareholders, including state shareholders.

Thailand’s Thai Beverage Public Co. Ltd. (ThaiBev) currently own 54% of Sabeco after it purchased a majority stake worth US$4.84 billion from the Ministry of Industry and Trade in December 2017.

After the deal, the trade ministry held nearly 36% of Vietnam’s largest local brewer by market value.

Other foreign organisations own 9.71% of Sabeco, and the remaining is held by small shareholders.

In the second quarter, Sabeco achieved more than VND7.1 trillion in net revenue, VND1.2 trillion in post-tax profit, both down by 21% compared to the same period last year.

In the first six months of 2020, Sabeco’s revenue and profit decreased by more than 30% year-on-year, reaching more than VND12 trillion and VND1.9 trillion, respectively.

The six-month results show the company fulfilled 51% of the annual revenue plan and 59% of the annual profit plan.

The VBA said Decree 100, which took effect on January 1, slapped heavy sanctions on inebriated drivers, leading to plunging sales of booze.

The industry has suffered again since the beginning of 2020 as the spread of COVID-19 forces companies to announce layoffs and stores selling non-essential products are requested to close.