Vietnam: Sabeco’s subsidiary Saigon Beer-Quang Ngai nearly triples net profit in H1 2026

Saigon Beer-Quang Ngai, a brewery subsidiary of Saigon Beer-Alcohol-Beverage Corporation, or Sabeco, nearly tripled its net profit in the first half of 2026 and is planning to raise brewing capacity in Vietnam’s central Quang Ngai province by 40%, according to the company’s interim financial statements and reporting by The Investor.

The Quang Ngai unit, known as BSQ, posted net profit of VND62.8 billion, or about $2.43 million, for the six months through June 30. That was up from VND21.5 billion a year earlier, an increase of roughly 192%. Net revenue from sales and services reached VND858.9 billion, or about $33.19 million, up 4% from the same period in 2025.

The profit increase came as revenue rose modestly and the cost of goods sold fell, helping gross profit more than double to VND93.9 billion. The results point to a sharp improvement in profitability at a time when Sabeco is also looking to expand production and broaden its presence in Quang Ngai beyond beer.

BSQ currently has annual brewing capacity of 250 million litres at its facility in Quang Phu Industrial Park. Sabeco now plans to lift that figure to 350 million litres a year in the coming period, adding 100 million litres of annual capacity. The company did not disclose a specific timetable for the expansion in the report cited by The Investor.

Production figures for the first eight months of 2026 show the brewery had already made more than 98.6 million litres of beer, equivalent to more than 88% of its full-year target. Export revenue over that period was estimated at $1.84 million.

The expansion plans are significant in the context of Vietnam’s beer market. According to Euromonitor, Sabeco was the second-largest player in Vietnam’s retail beer market by volume share in 2025, with 29%. The group reported VND25.888 trillion in net revenue that year. Vietnam was also the world’s eighth-largest beer market by consumption in 2024, making capacity growth in one of its regional brewing hubs an important move for the company.

Sabeco has operated in Quang Ngai since 2005 through BSQ. The brewery project in the province was granted an investment certificate in 2007 with total investment of more than VND1.58 trillion, or about $61.06 million, and an initial designed capacity of 100 million litres a year. Construction started in 2009, and the first phase was completed in late 2010. The company later added new production lines, fermentation systems, and energy-saving equipment. A further round of upgrades between 2018 and 2021 lifted capacity to 250 million litres annually, and the expanded plant produced its first beer batches in March 2022.

Sabeco is also widening its investment activity in Quang Ngai outside its core brewing business. BSQ is developing a shopping, service, and leasing center at 06 Nguyen Thuy Street in Nghia Lo ward. Construction began in June 2026, and the basic construction phase is expected to be completed in March 2027.

According to details cited by The Investor, the commercial project covers more than 7,800 square meters, with a building density of 55%, three stories, and total floor space of more than 10,200 square meters. The plan includes entertainment, shopping, and dining areas. After several capital increases, the project’s total investment has risen to more than VND302 billion, or about $11.67 million.

The broader push in Quang Ngai was underscored at a recent meeting between Sabeco executives and provincial leaders. Sabeco general director Lester Tan Teck Chuan thanked local authorities for their support and said the company wanted to continue expanding operations in the province and contribute to local socioeconomic development. In addition to raising brewery output and opening the retail and service center, Sabeco is also studying a possible social housing project in the province.

BSQ’s balance sheet showed total assets of nearly VND1.21 trillion as of June 30, slightly lower than at the start of the year. Cash and cash equivalents stood at VND47.6 billion, up by more than VND38 billion from the beginning of 2026. The company also held more than VND44 billion in short-term financial investments. Short-term receivables were VND169.7 billion, and inventories were about VND176.6 billion.

Total liabilities were above VND350 billion at midyear, a slight increase from the start of the year. All of those liabilities were short term, according to the interim accounts.

The financial improvement came despite a recent tax penalty from Quang Ngai’s provincial tax authority. The authority said BSQ had incorrectly declared several taxes, leading to underpayments of corporate income tax for 2020 and 2021, value-added tax for the June and August 2020 tax periods, and personal income tax for 2020, 2021, and 2022. BSQ was fined nearly VND74.48 million. It was also ordered to pay more than VND768 million in additional tax assessments and more than VND419 million in late-payment interest.

Even with that penalty, the company’s first-half earnings and planned capacity increase suggest Sabeco is trying to strengthen its position in central Vietnam while preparing for further demand in a market where scale remains important. The planned rise from 250 million to 350 million litres a year would make the Quang Ngai site a larger production base for both local sales and broader distribution across Vietnam, although the company has not yet said when the new capacity will be completed.

22 October, 2026