Vietnam’s beer production fell by 4% year-on-year in the first eight months of 2024 as breweries struggled with declining profits.
Nguyen Van Viet, chairman of the Vietnam Beer – Alcohol – Beverage Association, says the industry is suffering from strict drunk driving policies and difficulties in the economy. This affects the labor market and other industries supplying materials and services to beer manufacturers.
“Over the last two years, large companies in the industry have seen a 6-12% annual decline in revenues and profits,” Nguyen estimates.
Dutch brewing giant Heineken has seen its global beer production fall by 4.7%, mainly due to the Vietnam and Nigeria markets. It had to shutter its factory in Quang Nam Province at the end of June.
Ly Kim Chi, chairwoman of the HCMC Food and Foodstuff Association, says beverage firms are dealing with rising costs and outdated production processes that make it difficult for them to be competitive.
According to Ly, the beer industry should develop products that align with modern consumer trends and upgrade their technologies.
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