Diageo has lined up a joint venture to up its presence in the Vietnam spirits market.

The drinks giant confirmed to just-drinks today (7 February) that it has signed a memorandum of understanding with Hanoi Liquor Joint Stock Company (HALICO) to handle product development, manufacturing, marketing and sales and distribution of its existing and future products in the country.

The deal was signed late last month, Diageo said, and will see HALICO benefit by utilising Diageo's distribution system around the world.

The leading spirits company in Vietnam, accounting for 60% of the country's local branded spirits market, HALICO is majority-owned by Hanoi Beer Alcohol Beverage Corporation (HABECO).

"Vietnam is a fast growing and dynamic market," said Diageo Indochina's general manager, Sam Fischer. "We look forward to working together with strong and knowledgable partners in HALICO and HABECO."

Ho Van Hai, a director at HALICO, added: "The local spirits industry would be able to introduce to consumers of international markets through Diageo's global distribution system."

Financial details surrounding the joint venture were not disclosed.