On average, Vietnamese people consume 265 million liters of beer per month.

June 9, 2016 18:51

According to the Ministry of Industry and Trade's report on the performance of industries and trade sectors in May 2016, domestic beer production in May reached 308.8 million liters, compared to approximately 206 million liters in April.

In the first five months of the year, Vietnam produced 1.323 billion liters of beer, a 5.7% increase compared to the same period in 2015. According to this data, Vietnamese people consume an average of 265 million liters of beer per month.

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The country currently has nearly 130 beer production facilities with a total capacity of 4.8 billion liters.

The Ministry of Industry and Trade assesses that, according to the business cycle, the demand for beer and soft drinks is experiencing a sharp increase in the summer, driving up sales volume for businesses. Domestic factories are also increasing their operating capacity to meet consumer demand.

Currently, the excise tax on beer is 55% and will increase to 65% in three years, but domestic beer consumption continues to grow.

According to statistics from the Vietnam Beer, Wine and Beverage Association (VBA), Vietnamese people consumed 3.4 billion liters of beer in 2015. Of that amount, Sabeco, the "giant" company holding 43% of the national market share, supplied 1.52 billion liters to the market.

Due to the 5% increase in excise tax from January 2016, domestic manufacturers have stated that they are all having to calculate price increases for their products to offset costs and taxes. According to Sabeco's calculations, the company holding 43% of the domestic beer market share expects the price of Saigon Beer to increase by approximately 5%.

According to the VBA, in addition to facing increased taxes, domestic beer manufacturers are also confronting various market invasion tactics employed by foreign giants through mergers and acquisitions.

Furthermore, the reduction of beer import taxes to 0% as soon as the Trans-Pacific Partnership (TPP) agreement comes into effect will put even more pressure on domestic beer producers as they have to compete directly with imported beer.

Currently, there are approximately 129 beer production facilities nationwide, with a total capacity of about 4.8 billion liters per year, sufficient to meet domestic consumption needs. However, Vietnam still imports about 3 million liters of beer annually, while exporting 70 million liters.

According to VNE

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On average, Vietnamese people consume 265 million liters of beer per month.
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