Locals toast with beer as they gather for karaoke in Ho Chi Minh City on January 11, 2024. AP Photo/Jae C. Hong
Vietnamese brewers saw their profits fall by double digits last year as authorities tightened enforcement on drunk driving.
Hanoi beer brewer Habeco saw its after-tax profit plunge 30% last year to VND355 billion ($14.5 million), the lowest non-pandemic year since 2008.
Its revenue fell 8 percent to VND7.76 trillion as authorities tightened enforcement on drunk driving in the final months of the year, while economic challenges pushed consumption down , although competition in the beer industry remained strong.
Another brewer, Hanoi – Hai Duong, saw its after-tax profit fall 43% to VND6 billion, largely due to a fourth-quarter loss.
Saigon – The Hanoi brewer recorded a 25% drop in profit to VND43.3 billion.
Hanoi – Thanh Hoa Brewery recorded a year-on-year drop in production of 2.9 million liters in the fourth quarter.
Its profit fell by half, to VND5 billion.
The Vietnam Beer, Wine and Beverage Association said earlier that stricter drunk driving regulations in Vietnam had caused serious damage to brewers’ sales.
The country introduced a new drunk driving law in 2020 with harsher fines for drivers who have any amount of alcohol in their system.
In the last two months of 2023, HCMC launched its largest anti-alcohol campaign ever by sending new traffic police teams, made up of many more officers than usual, to streets known for high concentrations of bars, clubs and restaurants.
