British multinational alcoholic beverages company Diageo is to acquire an additional 10.62% stake in Vietnamese spirits producer Hanoi Liquor £14m.

Upon completion of the transaction by 24 June 2012, Diageo’s total share in Halico will grow to 45.52%.

Since January 2011, Diageo is in agreement with Halico, the producer of Vodka Hanoi, and is assisting Halico in areas of innovation, branding, supply and distribution.

Halico director Ho Van Hai said Diageo continues to demonstrate its commitment under the Strategic Partnership Agreement, assisting Halico to strengthen the Vodka Hanoi brand.

"We look forward to long term co-operation between Diageo and Halico under the Strategic Partnership Agreement and the positive effects it will continue to have on our business," Hai added.

Diageo Asia Pacific president Gilbert Ghostine said they are pleased to further participate in Halico’s growth potential and success by increasing their equity investment, which is an expression of their long term commitment both to Halico and to Vietnam.

Diageo, through its wholly owned subsidiary Diageo Vietnam, will develop its international premium spirits portfolio in Vietnam.

The company’s premium spirits portfolio in Vietnam includes Johnnie Walker, Smirnoff and Baileys.