The Vietnamese brewer Habeco is to invest US$100m in a new brewery in Vinh Phuc, according to local press reports.

A company official was quoted saying that the move was in response to tougher competition from foreign rivals.

Habeco hopes to have the plant operational by 2008. It will have a capacity of 100m litres a year, although this could be expanded to 200m litres in years to come.

"Habeco's total brewing capacity will reach 200 million liters by 2008, 10 per cent of which will be exported to the US, Japan, and Germany, with the remainder for domestic consumption," the company official said.