Heineken has announced the temporary closure of its Quang Nam brewery in Vietnam due to declining demand and evolving consumption patterns. This decision, reported by ESM Magazine, reflects broader challenges within Vietnam’s beer market, exacerbated by strict drink-and-driving laws and proposed tax increases.
In 2019, Vietnam implemented stringent drink-and-driving regulations, making it illegal for drivers to have any blood-alcohol level, which has significantly impacted beer consumption. Heineken cited these regulations as a key factor in the reduced demand for beer.
The brewery closure, characterized as an “asset-related solution,” will see some employees relocated to other Heineken facilities in Vietnam. However, the company has not specified the duration of the suspension.
The Quang Nam brewery is the smallest of Heineken’s six operations in Vietnam. Despite the temporary nature of the closure, the decision underscores ongoing difficulties in the Vietnamese beer market, which experienced a significant downturn in 2023, continuing into 2024.
Adding to these challenges, Vietnam’s finance ministry proposed a 100% special consumption tax on alcohol by 2030. If implemented, this tax increase could further strain the beer industry.
This temporary suspension highlights the shifting landscape of beer consumption in Vietnam, driven by regulatory changes and economic pressures.
