How the Ex-Vinacomin Leader Covertly Secured Control of Ha Long Beer

When discussing the beer industry in Vietnam, the conversation typically revolves around prominent names like Sabeco, Habeco, and Heineken. However, many are unaware of a notable contender with a rich history: Ha Long Beer. With a legacy spanning 35 years, this brand has established a significant footprint in a market often dominated by the giants.

Currently, Ha Long Beer and Beverage JSC is making waves not just in the restaurant and bar scene, but also on the stock markets. The company’s shares (HLB) have skyrocketed, placing them among the top market performers across three stock exchanges: the Ho Chi Minh Stock Exchange (HoSE), the Hanoi Stock Exchange (HNX), and the Unlisted Public Companies Market (UPCoM). As of December 15, HLB shares traded at an impressive VND300,000 (approximately $12.32), making it second only to VNZ of VNG Corporation, which soared to VND689,000.

Founded in the northern province of Quang Ninh, Ha Long Beer and Beverage JSC originated as Hong Gai Food Factory in 1967. The company underwent several transformations, a crucial one being its rebranding to Quang Ninh Beer and Beverage Factory in 1992. A few short years later, in 1996, the factory officially became Quang Ninh Beer and Beverage Company, before adopting the Ha Long Beer and Beverage JSC name in 2003.

The entry of Carlsberg Breweries as a major shareholder in 2014, holding 31.3%, marked a transformative moment. The addition of influential board members, Bui Huu Quang and Tayfun Uner, fostered expectations for a modernization and growth trajectory within the company. This was paralleled by the State Capital Investment Corporation (SCIC) attempting to auction off a 35% stake in HLB. Despite a promising start with the auction originally set for August 2014, it failed as no investors showed interest. By 2015, Ha Long Beer had vanished from the SCIC’s list of companies for sale.

The narrative of Ha Long Beer became clearer with the appointment of Doan Van Quang as chairman in June 2015. Quang, a veteran in the mining industry, had a lineage of leadership roles in the state-run group Vinacomin. His shift to Ha Long Beer signified a new era, particularly after SCIC and Carlsberg Breweries exited as major shareholders. New influential figures emerged in the company, including Quang’s family members who gradually amassed controlling shares, encapsulating the tight-knit nature of the business’s ownership.

By the end of 2022, the Quang family held a staggering 57.671% stake in Ha Long Beer, valued at about VND533 billion (approximately $21.88 million). This consolidation of ownership highlighted the familial ties central to the company’s governance.

In matters of performance, despite relatively modest capital and resources, Ha Long Beer exhibited remarkable growth. From 2015 to 2022, its compounded annual growth rate (CAGR) reached an impressive 25.91% in revenue and 28.8% in after-tax profit. Notably, even during the tumultuous years of the Covid-19 pandemic, Ha Long Beer thrived, reporting a revenue of VND709.8 billion ($29.14 million) in 2020, a 21.2% increase compared to 2019. The upward trend continued into 2021, with revenue skyrocketing by 38.2% to VND981 billion ($40.28 million).

Last year marked a historic milestone for the company, as revenues exceeded the VND1 trillion mark for the first time, reaching VND1,369 billion ($56.2 million), coupled with an after-tax profit of VND126.5 billion ($5.2 million)—up 54.6% year-on-year. This robust performance translated into substantial return on assets (ROA) at 24.44% and return on equity (ROE) at 33.73%, outpacing industry giants Sabeco and Habeco.

Ha Long Beer also stood out in the market for its generous dividend policies. Between 2014 and 2018, the company consistently paid high cash dividends, culminating in a remarkable 200% payout in 2018. Although this trend paused in 2019 to focus on factory upgrades, the company resumed its rewarding dividend payments with rates of 20% in 2020 and 100% in 2021. Recently, in September, HLB announced a dividend of 150% per share, signaling the company’s commitment to shareholder returns.

As the competitiveness of the beer market escalates in Vietnam, Ha Long Beer’s resilient growth and family-driven governance combine to shape its identity as a formidable player in the industry.