Vietnam has proved to the world its strength and resilience in the face of adversity as it recovered steadily from 2022’s complexities, remarked the corporation’s (SABECO) general director Bennett Neo.

The Vietnamese culture-embraced design of Bia Saigon’s “63 is 1” collection attracted many visitors during Vietnam’s Culture and Tourism Festival in South Korea in October 2022

In line with this spirit of solidarity for a flourishing Vietnam, the brewing giant has made commitments to stand alongside the government and people to help restore economic prosperity, Neo added.

Major economies have slowed down in the context of struggling global economic growth, but Vietnam’s growth rate for the year was still impressive.

Nevertheless, the beverage industry was one of the hardest hit over the last two years when restaurants, hotels, and points of sale were forced to close for some time. However, the beer industry also witnessed a rapid recovery in production.

Vietnam’s beverage sector sets the target to achieve a growth rate of 6-6.5 per cent in 2022, and the sector aims to produce 4.5 billion litres of beer, up 12 per cent against 2021 and equalling 88.5 per cent of the 2019 volume.

Driving recovery

On the right track to recovery, SABECO targeted $1.5 billion in net revenues and $200 million in after-tax profit for 2022, a respective increase of 32 and 17 per cent on-year. In the first nine months alone, the brewer accomplished 96.6 per cent of its profit goal.

SABECO raised net revenues by 44 per cent and profit after tax by 75 per cent in the first nine months of 2022, climbing to $1.08 billion and $191.3 million respectively. The company is also one of the top 10 listed businesses on the Vietnamese stock exchange with the greatest deposits.

In the context of rising operating interest rates, the banking industry’s loan expansion plans remain closely limited, and all firms face cash flow management challenges. According to SSI Securities, SABECO has great forecasting ability and effective financial management skills, allowing it to maintain the lead in cash flow even in the current period.

SSI said that this is a positive signal in a difficult year for businesses in the beer and beverage industry and SABECO in particular, since the global supply chain continues to break down due to the impact of the pandemic, geopolitical tensions, and increases in prices of many commodities and production materials.

“We also noticed an improvement in SABECO’s brand health,” wrote SSI, which projected that its profit will increase by 4 per cent on-year due to the high comparative base of the previous year.

According to SSI, in 2023 the food and beverage industry will be a top investment option in the context of high inflation. Demand has grown stronger in the second half of 2022 and will return to normal imminently. Therefore, SABECO has many advantages to continue to expect growth. As a top player, it has a good grip on environmental management, and the latest general management methods across the board. It is also on track to further activate its transformation agenda that will strengthen its operational capabilities and modernise its governance system.

For instance, SABECO last year started its second phase of transformation, aiming to further step up in its journey to enhance both its competitiveness and profitability, in which it focuses on the key pillars of sales, brand/marketing, production, supply chain, people, and unlocking potential, supported by SABECO 4.0 and governance initiatives.

Thapana Sirivadhanabhakdi, president and CEO of parent company ThaiBev, confirmed at the company’s annual press conference in September that SABECO “is our crown jewel – a rare asset among all brewing assets in the region”.

SABECO has continued to record a strong position in the Vietnamese market and overseas with endless efforts. For instance, the Asia Beer Championship 2022 honoured Bia Saigon for its outstanding products and its innovation to meet customer needs.

Flagship brands Bia Saigon and Bia 333 have also been consistently recognised for outstanding quality by prestigious local and international organisations, such as the Vietnam Value programme, for a few years. The company also received a gold medal at the International Brewing Awards 2019, a gold, silver, and bronze at the International Beer Cup 2019; a gold and silver at the Australia International Brewing Award 2020; and gold and silver at the Monde Selection Awards 2021.

Stronger together

With its leading position in the market – including 26 breweries, 11 trading subsidiaries, and a distribution network consisting of thousands of retailers nationwide, SABECO considers consensus and social responsibility as one of core values to lead to its success.

Koh Poh Tiong, chairman of the Board of Directors, said, “Over the past two years, the pandemic has taught us an important lesson of standing together to become stronger together. As a result, we have pulled together to support our employees and local communities where we live and work, with one intention to help each and every one of us overcome the great challenges together.”

SABECO has arranged various activities to develop and honour consensus and social responsibility. In 2022, it collaborated with the Vietnam General Confederation of Labour and Ho Chi Minh Communist Youth Union (HCYU) to roll out the “Together We Make Tet” programme, which is part of Bia Saigon’s Lunar New Year campaign.

Over the years, Bia Saigon has initiated meaningful community programmes including supporting struggling workers with travel tickets to return home during the festive season. Last year, both the HCYU and Bia Saigon kicked off the “Tet One Home” community programme, contributing 1,530 bus tickets, 270 plane tickets, 200 train tickets, and 800 festive gifts to workers and youth union members.

“Along with our efforts to promote business activities and contribute to the socioeconomic development of Vietnam, we do not forget our responsibility in promoting and supporting the development of the community through sustainable development initiatives,” said Neo at the Vietnam Glory Award ceremony.

At the event, SABECO was selected among seven outstanding companies and six individuals for its practical contributions to the country’s socioeconomic development through sustainable development initiatives. Its branding is also no stranger to the country’s sports and culture. The HCYU and SABECO have also announced a community-based Fostering Sports project. It is part of a 3-year cooperation framework with the aim of promoting and encouraging positive lifestyles and bringing the opportunity to develop youth sports in the community.

For 2022 alone, the project focused on supporting the provinces of Khanh Hoa, Dong Thap, Soc Trang, Dak Lak, Binh Dinh, Thanh Hoa, Tuyen Quang, Bac Giang, Nghe An, and Thai Binh.