Vietnam is the second most lucrative market in the world for Heineken beer brand.

Heineken Asia & Pacific President Frans Eusman said they are pouring money into Vietnam - their second most profitable market, after Mexico.

Heineken sees Vietnam as its main growth engine in Asia-Pacific, while it is increasingly difficult to make profits from Africa, the Middle East and Europe.

The 143-year-old brewer operates through two companies in Vietnam: APB (Asia Pacific Breweries) in Hanoi, which is wholly owned by Heineken, and VBL (Vietnam Beer Joint Venture Company), which Heineken owns 60%.

“We are very proud of what we have been able to create,” Eusman said in a recent interview with CNBC. “When we first entered Vietnam, we had a very small factory. Now we are the second largest beer company.”

Heineken has high hopes for the Asian beer market. Photo:AFP

Heineken sees growth opportunities across Asia, he said. It spent $60 million to build a brewery in Myanmar in 2015 and also operates in China, India, Cambodia, Indonesia and Malaysia. It now has the largest market share in half of those countries.

The company recently signed a partnership agreement with Philippine beer company Asia Brewery to bring its Heineken and Tiger brands to the country. Eusman said more deals are on the way.

Eusman said Myanmar is “a great opportunity.” “In some ways, Myanmar is like Vietnam 10-25 years ago. They have a young population, growing wealth, growing GDP, and a lot of people are starting to have more money,” he said.

Tiger is currently their best-selling beer brand in Southeast Asia, he said, adding that it is a “fantastic brand” with global potential.

“Tiger is helping us grow strongly right now,” Eusman said. “It’s in the top 10 global brands for Heineken, but it’s not yet well known outside of Asia. So we want to build momentum to grow in Asia while also looking at opportunities outside.”

Despite Asia’s economic slowdown, Eusman remains optimistic about the region’s growth fundamentals, with its young and rapidly growing population. “If you look at the beer market and per capita consumption here, it’s still quite low compared to Europe. So there’s a lot of potential here,” he concludes.

According to VNE