Foster's, the Australian wine and beer giant, has increased its investment in the Vietnamese beer by buying the Vietnamese Song Han brand and its Danang brewery for A$8m (US$4.6m).

The acquisition will double the capacity of Foster's existing Danang brewery and meet growing regional demand for its product.

By buying the brewery assets and Song Han brand license, Foster's can increase its Danang brewery capacity to six million cases of beer a year.

"The asset purchase underlines Foster's confidence in the Vietnam market and puts us in an ideal position to grow our business in the second fastest growing economy in Asia," Foster's Brewing International managing director Rick Scully said.

"Our aim is to be a major player in the Vietnam beer market as well as use our Vietnam operations as a production source for regional exports," he added.

Foster's said business in Vietnam had doubled since the initial investment in 1997 and it had national market share approaching 12 percent.

Foster's already operates two breweries in Vietnam, the Foster's Danang Brewery and the Foster's Tien Giang Brewery outside Ho Chi Minh City.