By Kieu Mai
June 26, 2024 | 09:05 AM GMT+7
Vietnam's beer market experienced a double-digit decline in 2023, with mid-single-digit declines continuing this year.
Heineken Vietnam will suspend operations at its Quang Nam brewery starting June 2024 as part of the company's strategy to adapt to changing market conditions and streamline operations.
Heineken Vietnam, with over three decades of operations, has expanded from a single brewery in Ho Chi Minh City in 1991 to six breweries nationwide, with investments nearing $1 billion.
The post-Covid era has posed significant challenges, with the economic slowdown impacting consumer confidence and changing consumption patterns.
The strict enforcement of Decree 100 has further altered consumer behavior regarding alcoholic beverages. Consequently, Vietnam's beer market experienced a double-digit decline in 2023, with mid-single-digit declines continuing this year.
To address these challenges, Heineken Vietnam is optimizing its operations to improve efficiency and achieve economies of scale. The Quang Nam brewery, the smallest of the six, has been selected for temporary suspension as part of asset management efforts.
Employees affected by the closure will be relocated to other breweries where possible, with those unable to move receiving unemployment benefits in accordance with Vietnamese law. Despite the suspension, Heineken Vietnam reaffirms its commitment to the Central Vietnam region and will maintain a strong commercial presence.
The company remains committed to supporting its workforce and achieving net-zero carbon production goals by consolidating operations into fewer, larger breweries. This strategic decision aims to sustain business operations and drive further growth in the Vietnamese market.
