Carlsberg’s $130 mln plant expansion in central Vietnam set to start brewing next month

The expansion of Carlsberg’s brewery in Hue city, central Vietnam, with an investment of over VND3.4 trillion ($129.66 million), has entered trial runs and is scheduled to begin full production in September, Carlsberg Vietnam said.

The new production line will boost capacity from 410 million liters to 600 million liters per year. The expansion will make the plant Carlsberg’s largest in Asia and position it among the Danish brewer’s highest-output facilities worldwide.

Speaking at a working session with Hue authorities on Thursday, Carlsberg Vietnam added that H1/2025 remained challenging for the beer industry amid weak demand, shifting consumer trends, and mounting competitive pressure. Its total sales volume hit about 133 million liters, down year-on-year.

However, the company has maintained stable employment for more than 1,600 workers and contributed over VND1.5 trillion ($57.2 million) to the budget - a figure city officials called commendable given the broader context.

The brewer proposed that the city support to boost product consumption and crack down on unlicensed craft beer, counterfeits, and knockoffs - issues currently impacting the brand’s reputation.

The company also suggested partnering to launch more cultural and community events that promote its products alongside Hue’s distinctive image. This approach not only boosts the company’s brand visibility but also enhances local cultural value, attracts tourists, and strengthens the connection between industry, services, and tourism.

Vice Chairman of the municipal People’s Committee Phan Quy Phuong praised Carlsberg Vietnam’s role, pledging that the city will direct relevant departments to work closely with the company to promptly resolve challenges, from technical infrastructure to administrative procedures and the investment environment.

He asked the brewer to further innovate its sales model by linking it with the former imperial capital’s tourism and culture, and deepen participation in signature city events such as the Hue Festival, Ao Dai (long traditional dress) Festival, and Royal Night.

At the same time, focus should be placed on sustainable development, environmental protection, efficient energy use, and safeguarding workers’ rights during the production expansion process, he said.

Carlsberg was the first large Danish multi-national to enter Vietnam, in 1993.

For the first 20 years, Carlsberg’s JV partners managed its Vietnamese holdings under Carlsberg Indochina. In 2013, a fully dedicated Carlsberg management team was established and consolidated operations into a single unit with two legal entities (Carlsberg Vietnam Trading and Carlsberg Vietnam Breweries), according to its website.

Carlsberg holds a significant share of the central Vietnam beer market with its popular Huda brand. The brewer ranks fourth in Vietnam, commanding roughly 8% market share, according to reports.