Vietnamese people are drinking more and more beer.
National beer production in 2017 reached over 4 billion liters, an increase of 260,000 liters (equivalent to 6%) compared to 2016.
This information was provided by Mr. Nguyen Van Viet, Chairman of the Association.The Vietnam Beer, Wine, and Soft Drinks Association (VBA) stated at its recent year-end review conference.
With beer consumption data exceeding 4 billion liters in 2017, the average Vietnamese person drank nearly 45 liters of beer in 2017, a 1.5-fold increase compared to two years prior.According to the development plan for Vietnam's beer, wine, and soft drink industry, the target for the beer industry is to produce 4.1 billion liters of beer by 2020, meaning that on average, each Vietnamese person will consume about 43 liters per year. Based on 2017 data, consumption has already nearly reached the target for the next four years.
Contributing significantly to the country's beer consumption in 2017 was Saigon Beer, Alcohol and Beverage Corporation (Sabeco) with 1.77 billion liters (a 6.6% increase), while the production of the second largest domestic beer company, Hanoi Beer, Alcohol and Beverage Corporation (Habeco), decreased by 6.5%, reaching 657.6 million liters. The remaining market share belonged to foreign beer companies and other small and medium-sized enterprises.Beer manufacturing and trading businesses have contributed 50,000 billion VND to the state budget, double the amount from three years ago.
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Vietnamese people consumed over 4 billion liters of beer in 2017.Illustrative image |
Despite increased beer production, according to the VBA Chairman, the beer market growth rate is only two-thirds of that in 2016. However, the industry's attractiveness to foreign businesses remains undiminished. The most concrete example is the successful sale of 51% of the state's capital in Sabeco to a Thai owner, generating nearly $5 billion for the national budget.
Mr. Viet also acknowledged that 2018 will be a challenging year for domestic beer businesses due to the "invasion" of foreign beer giants into the market.
The goal for the development of Vietnam's beer industry is to achieve a certain production volume.Beer production is projected to reach 4.1 billion liters in the next four years, increasing to 4.6 billion liters by 2025 and 5.6 billion liters by 2035. Thus, over the next two decades, beer production will double compared to the over 4 billion liters produced in 2017.
