SABECO drives nation’s FMCG transformation

Speaking at the Sustainable Development Conference hosted by VIR in Hanoi last week, Larry Lee, deputy general director of Strategic Assets & Sustainability at Saigon Beer-Alcohol-Beverage Corporation (SABECO), presented a blueprint for how green manufacturing can become a strategic lever for competitiveness, resilience, and long-term value creation.

The company’s leadership promises collaborations that can create shared impact

Lee that environmental performance is now inseparable from business performance, and companies that fail to integrate sustainability into core operations risk losing their competitive edge.

As Vietnam’s largest brewer, SABECO operates at a scale that makes sustainability a business imperative. The company’s participation as a keynote speaker at the national-level forum underscored its ambition to define a new model of industrial growth, one that aligns environmental performance with long-term competitiveness.

The fast-moving consumer goods (FMCG) sector, together with food and beverage manufacturing, accounts for more than half of national industrial energy consumption. This reality places the sector at the heart of the country’s low-carbon transition. Companies that lead in reducing emissions, increasing efficiency, and redesigning supply chains will secure their own resilience and shape national outcomes.

SABECO has chosen to position itself as one of these drivers of change. Instead of treating sustainability as a compliance requirement, the company frames it as a long-term business strategy that influences investment decisions, operational priorities, and market positioning.

The external context reinforces this approach. In 2024, the global sustainable finance market reached $5.87 trillion, while the green economy accounted for nearly nine per cent of global equity markets by early 2025. At the same time, consumers are increasingly factoring sustainability into purchasing decisions. International surveys indicate that buyers are prepared to pay a premium for products that demonstrate credible environmental and social responsibility.

Vietnam is aligning rapidly with this global shift. Commitments to reach net-zero emissions by 2050, alongside the nation’s green growth strategy and the Power Development Plan VIII, send a clear signal that environmental performance will increasingly define market access and corporate viability.

SABECO, against this backdrop, is undergoing a comprehensive transition that touches every part of its operational model, from energy sources and water management to packaging design and governance.

Building competitiveness

SABECO’s core thesis is that sustainability and competitiveness are not opposing objectives, according to Lee. The company argues that efficiency gains, risk reduction, and brand trust together generate tangible economic value.

The transformation is visible in measurable outcomes. By the end of 2024, renewable energy supplied more than 40 per cent of electricity used across production facilities. Greenhouse gas emissions from direct operations declined by over nine per cent, while water intensity fell by more than 7 per cent. Waste diversion reached over 64 per cent, and all primary packaging materials were certified as recyclable or reusable.

These achievements were delivered through coordinated investments across five strategic pillars. The first focuses on energy decarbonisation through rooftop solar systems, biomass boilers, and continuous optimisation of electricity use. In 2024 alone, solar installations generated nearly 8,000MWh of clean electricity, while biomass operations prevented over 7,400 tonnes of carbon dioxide emissions. Electricity intensity fell by more than 8 per cent across breweries, delivering cost savings alongside environmental benefits.

The second pillar aims to reshape packaging systems in line with circular economy principles. SABECO has maintained national glass bottle return rates of 75-80 per cent and achieved a 15 per cent reduction in aluminium usage since 2019 through lightweighting. The company’s objective is to close material loops and minimise waste generation across its entire packaging portfolio.

The third aspect is water stewardship, a critical priority in a country facing emerging water stress and climate volatility. SABECO has reinforced wastewater treatment systems and expanded rainwater harvesting at multiple sites. In parallel, the company applies water-risk mapping to identify vulnerable locations and inform long-term investment planning.

Fourthly, sustainability oversight now operates at board level through a dedicated sustainability and risk management committee. The company publishes disclosures aligned with international reporting frameworks and applies performance metrics across environmental, social and governance domains.

Meanwhile, the fifth and final pillar addresses community and supply chain resilience. Sustainability initiatives extend beyond factory gates into supplier engagement and social programmes, aiming to ensure that environmental gains are accompanied by social progress.

The underlying principle is systemic integration, and each operational area reinforces the others: energy efficiency reduces emissions while strengthening cost control; circular packaging lowers resource dependency; water stewardship safeguards production stability; governance enhances transparency and trust; and community investment supports long-term operating resilience.

This approach reflects a strategic understanding that sustainability cannot be implemented through isolated projects. It must be embedded into decision-making structures and performance systems.

Delivering shared value

SABECO’s strategy, according to Lee, emphasises that a sustainable enterprise must generate value for shareholders and for communities and the national economy.

The company’s community programmes span infrastructure development, youth engagement and disaster relief. Solar-powered streetlights now operate across more than 100km nationwide, improving safety and energy access in dozens of provinces. Youth-oriented sports initiatives have reached tens of thousands of participants, promoting community cohesion and healthier lifestyles.

In recognition of outstanding contributions to this transition, SABECO was recognised for its contributions at the Sustainable Development Conference last week.

Meanwhile, 2025 marked the third consecutive year SABECO was named among the Top 100 Best Places to Work in Vietnam, while also recording a significant rise in its overall position to 34th, up six places from the previous year.

The award, organised by Anphabe under the patronage of the Vietnam Chamber of Commerce and Industry, is widely regarded as a prestigious benchmark for employer branding, corporate culture, and employee satisfaction.

This year, the ranking was based on a survey of more than 73,000 employees and evaluations of over 650 large enterprises nationwide. Within the large-scale FMCG sector, SABECO ranked 14th.

Beyond these achievements, SABECO received wide recognition at several other major awards over the year, including named in the Top 10 Reputable Brands at the Vietnam Excellent Brand Awards, Top 25 Listed Companies as voted by Forbes Vietnam, and also Top 5 Reputable Beverage Companies by VNReport.

These consecutive honours stand as strong testament to SABECO’s structured, transparent, and consistent development strategy, while reaffirming its leadership role in Vietnam’s beverage industry – particularly in balancing business growth with sustainable development.

For SABECO, Lee said, the message is clear. The company is no longer defined solely by its heritage as a national brewer, but increasingly by its ambition to become a sustainability benchmark in the FMCG sector.

SABECO’s major growth lever boost Saigon Beer-Alcohol-Beverage Corporation has positioned its green transition as a strategic priority rather than a side project in order to address current regulatory requirements as well as reduce long-term operational risks in an increasingly unpredictable market environment.

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