[Report] Annual Growth of 30%... Korean Fruit Soju Captivates Vietnam

K-Soju Landing Smoothly in Vietnam
Fruit Soju Gains Strength... Key to Opening General Soju Market
First Overseas Production Plant Established in Thai Binh Province, Vietnam

"I usually prefer low-alcohol drinks because my face tends to flush easily when I drink, and fruit soju has a relatively low alcohol content, so I think it suits me well."

'Ta Hien,' located 100 meters along the northeast of Hanoi's old quarter in Vietnam's capital, is an entertainment street. Filled with rows of pubs and densely packed stalls, this area is popularly known as 'Beer Street' and is favored by both tourists and locals. When I visited Ta Hien Beer Street on the 10th, it was bustling with customers even in the relatively early evening. True to its reputation as Hanoi's representative beer street, the pub tables and stalls were crowded with people enjoying a variety of beers, from local brands like 'Bia Saigon' and 'Bia Hanoi' to global brands such as Budweiser, Corona, and Heineken.

University student Bu Thi Tam, living in Hanoi, Vietnam, is enjoying fruit soju with friends at a Korean restaurant.
[Photo by Hanoi Joint Press Corps]

Fruit Soju 'Bul-ti' on Hanoi's Ta Hien Beer Street

Walking along Beer Street, among the many beer bottles on the tables, one type of bottle particularly catches the eye. It was a green soju bottle that any Korean would instantly recognize. In fact, it was not difficult to find people drinking soju on Ta Hien Street. Most pubs had soju on their menus, served with the familiar 50ml soju glasses. Although Ta Hien is a popular area for Korean tourists, most of the tables with soju bottles were occupied by Vietnamese locals.

However, there was a clear difference from Korea: the dominance of fruit soju. In the Korean soju market, where regular soju brands like 'Chamisul' and 'Jinro' are dominant, fruit soju hardly has a presence. But in Vietnam, it was different. On that day, I met university student Bu Thi Tam (21), who was enjoying fruit soju with friends. Tam, who first tried soju in her second year of university through an acquaintance's introduction, said, "I have tried regular soju, but I felt the alcohol content was too high." She added, "I prefer low-alcohol drinks, so I like fruit soju more." She also mentioned, "Soju is easy to find in local supermarkets, so I often drink it at home."

Local residents are enjoying soju on Ta Hien Beer Street in Hanoi, Vietnam.
Photo by Koo Eun-mo

Fruit Soju Dominates Soju Sales at Korean Restaurants

The popularity of fruit soju is also evident in local Korean restaurants. Kim Kwang-wook, CEO of Jinro BBQ, which operates four Korean BBQ restaurants in Hanoi, said, "At the Hoan Kiem branch, which is a tourist area, about half of the customers are Korean, but the other three branches have 99% Vietnamese customers." He explained, "Most customers are women in their mid-20s and older, and these female customers mainly choose fruit soju, which accounts for over 80% of soju sales." He added, "The remaining 20% of regular soju sales are mainly to male customers. We also develop and sell cocktails and highball menus using regular soju, and customers familiar with Korean dramas sometimes enjoy soju mixed with beer (somaek)."

On that day, Korean liquor promotional activities were actively taking place on Ta Hien Street. Mascots wearing toad costumes and promotional staff visited each establishment, encouraging customers at every table to drink soju and offering prizes through various games. HiteJinro is strengthening face-to-face promotions in Vietnam to extend the experience from entertainment channels to home channels. Their strategy is to expand direct drinking experiences through face-to-face promotions in the entertainment market and thereby boost sales in the home channel.

HiteJinro's exclusive soju display stand set up at Fuji Mart in Hanoi, Vietnam.
[Photo by Eunmo Koo]

Before expanding its sales scope to the entertainment market, HiteJinro has been continuously focusing on entering the home channel as a preliminary step. At Fuji Mart Huong Cau branch near Dong Da Lake in Hanoi, which I visited on the same day, HiteJinro had set up a dedicated display and was conducting aggressive home channel promotions. Fuji Mart currently operates 11 stores in Hanoi and plans to expand to 50 stores by 2028.

Yoon Hyun-seok, team leader of HiteJinro Vietnam, said, "At this store, Jinro soju sells about 3,000 bottles per month." He explained, "Although regular soju is still unfamiliar, and most sales are fruit soju such as green grape and strawberry flavors, we recognize that fruit soju can be the key to entering the regular soju market." He added, "Alcoholic beverages with an alcohol content above 15% cannot be advertised locally, but fruit soju has a lower alcohol content of 12%, which allows advertising and helps with a smooth market entry."

First Overseas Production Plant Established in Vietnam... To Become Southeast Asia Production and Distribution Hub

Celebrating its 100th anniversary this year, HiteJinro is building its first overseas production plant in the GREEN i-PARK industrial complex in Thai Binh Province, Vietnam, to meet the growing demand in overseas markets. Since declaring the 'Globalization of Soju' in 2016, global awareness and preference for soju have steadily increased. From 2017 to last year, Jinro's overseas sales grew at an average annual rate of about 12.6%, and in 2022, it surpassed 100 million boxes sold and $100 million in export revenue.

Vietnam, selected as HiteJinro's first overseas production base, has a deep connection with the company. Vietnam was the first country to which HiteJinro exported soju in 1968, and in 2016, the company established a corporation in Hanoi and declared 'Global Vision 2024,' marking the first step toward soju globalization. In 2018, it also established a branch in Ho Chi Minh City to strengthen local market penetration.

Jung Seong-hoon, head of HiteJinro Vietnam Corporation, is explaining the site of the production plant to be built in Thai Binh Province, Vietnam.
[Photo by Koo Eun-mo]

Vietnam has a population of about 100 million, with a median age of only 32 as of last year, making it a young country. Given the potential of the domestic market and the expected growth in purchasing power, it is a target market for many Korean food companies, including HiteJinro, as their first overseas market. Especially with the Korean Wave, there is high interest in K-content and K-food, creating a favorable market environment for Korean companies.

Additionally, the strong performance of Jinro soju in Vietnam is another reason HiteJinro chose the country. Although beer accounts for over 90% of the local liquor market, HiteJinro's soju sales have increased by about 31% annually over the past three years, and last year's local sales reached the highest level since entering Vietnam.

Thai Binh Province, where HiteJinro's first overseas production plant will be located, is adjacent to Hanoi and offers excellent logistics access with an international airport, port, and coastal roads. It also has a friendly investment policy for foreign companies. With a population of about 2 million, approximately 1.2 million are of working age, providing abundant labor. Competitive labor costs and rental fees make it an optimal location for factory construction.

Aerial view of HiteJinro Vietnam Thai Binh factory.

The HiteJinro Vietnam plant will be built on a site of about 25,000 pyeong (82,083㎡), which is 11 times the size of a soccer field. Construction will begin in the first quarter of next year, with production equipment installed in the third quarter, aiming for completion and production by the second quarter of 2026. Initially, one production line will target an annual output of about 1 million boxes of fruit soju, accounting for approximately 17% of this year's overseas soju sales target. The company plans to expand to 2-3 production lines in the future, potentially producing up to 5 million boxes annually.

Jung Sung-hoon, head of HiteJinro Vietnam, said, "The Thai Binh plant will serve as a hub for soju production and distribution in the Southeast Asian market." He added, "We aim to build the most efficient production system by installing the latest equipment and consolidating HiteJinro's 100 years of technology and know-how." He also said, "We are preparing the Thai Binh plant in depth to become a standard factory that can be applied when HiteJinro builds its second overseas or domestic factory in the future, so please watch closely."