Saxi Chuong Duong weighs asset sale, brand transfer amid cash strain
By the end of 2025, the company had recorded five consecutive years of losses, bringing accumulated losses to approximately VNĐ350 billion despite restructuring efforts.
HÀ NỘI — Chuong Duong Beverage JSC (Saxi Chuong Duong) is considering divesting key assets, including its factory and core brand, as mounting financial pressure forces a business overhaul, according to documents for its 2026 annual general meeting.
Once a familiar southern brand, Chuong Duong saw strong growth in 2009-16, with revenue peaking at VNĐ417 billion ̣(US$16 million).
The company is now facing significant liquidity constraints after several consecutive years of losses.
Chairman Tan Teck Chuan Lester said the firm has fallen into negative equity while operating cash flow has deteriorated sharply.
"With negative equity and severely declining operating cash flow due to continuous losses, management assesses that the company may not have sufficient funds to sustain operations through the end of this year," he wrote in the documents.
In response, Chuong Duong plans to transfer its Nhon Trach 3 factory along with related assets, including the Saxi brand, to F&N Ventures for VNĐ93 billion ($3.5 million). The buyer is a subsidiary of Fraser & Neave, part of the Thai Beverage ecosystem controlled by billionaire Charoen Sirivadhanabhakdi.
The proposed divestment follows a prolonged decline in business performance. By the end of 2025, the company had recorded five consecutive years of losses, bringing accumulated losses to approximately VNĐ350 billion despite restructuring efforts.
Liquidity strains surfaced earlier, with the company seeking to extend over VNĐ450 billion in internal loans from Sabeco in September 2025 to avoid insolvency.
Alongside divestment plans, it is considering a shift towards real estate, leveraging land in central HCM City and Bình Dương.
In Q1 2026, revenue reached VNĐ63 billion, but the firm still posted a net loss of nearly VNĐ11 billion.
The domestic beverage market has maintained annual growth of around 5–6 per cent, particularly in healthier, low-sugar product segments. However, the company said it lacks sufficient resources to capitalise on these trends.
External pressures have added strain, with Middle East tensions pushing up input and logistics costs, while tight cash flow is set to raise financial expenses. — BIZHUB
