While many industries are suffering from the economic downturn, the beverage industry has continued to grow over the first half of this year.

The beverage industry has grown by 10.5% compared to the same period last year

During the review conference about the industry's activities, Nguyen Van Viet, president of Vietnam Beer, Alcohol and Beverage Association (VBA), said that in the first six months of this year the industry has grown by 10.5% compared to the same period last year.

They have produced nearly 1.4 million liters of beer, an increase by 10.7% compared to last year. The majority of  the market share is still controlled by Saigon Beer-Alcohol-Beverage Corporation (Sabeco), Hanoi Beer-Alcohol-Beverage Corporation (Habeco), Heineken and Carlsberg brewery corporations.

The volume of beer production by Sabeco and Habeco reached 673 and 299.8 million liters respectively, while other companies' total beer volume was 400.2 million liters. The volume of non-alcoholic beverage in the first half of the year has also seen impressive growth, with 4.2 billion liters produced; an increase of 20% over the previous year.

25,000 businesses in other industries had to shut down in the first six months of the year because of capital shortage and high inventories. However, the beverage industry still contributes over VND20 trillion (USD959 million) to the state and creates millions of jobs across the country each year.

On the other hand, a conference about domestic brand names and consumer protection pointed out that many domestic beverage brand names are being threatened in this competitive market. Only a few Vietnamese beverage companies, such as Tan Hiep Phat, can still stand up against Coca Cola and Pepsi; and recently, Taiwanese food processor Uni-President, has taken over major shares of Tribeco Company.

Viet also pointed out that the market is being flooded by various kinds of cheap and low-quality products. In addition, authorities must be quick to deal with FDI firms that use transfer pricing to avoid tax.

Deputy head of Industry and Trade, Ho Thi Kim Thoa, asked firms to contribute information and ideas in order to create a level playing-field for everyone concerned.