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Waning demand forces Heineken to close brewery in central Vietnam

The Saigon Times

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HCMC – Heineken Vietnam has decided to close its brewery in the central province of Quang Nam this month, citing a sharp decline in consumption following the Covid-19 pandemic and the implementation of Government Decree 100 that bans drink driving.

Local news reports quoted a representative of Heineken Vietnam as saying on June 25 that the company is in the process of suspending operations at its Quang Nam facility.

Located in the Dien Nam-Dien Ngoc Industrial Park (Dien Ban), the factory has been operational since 2007, producing Heineken, Tiger, and Larue beers among others. It is the smallest brewery among the six Heineken Vietnam facilities in terms of scale.

The post-pandemic economic challenges, including those faced by the beer industry, have resulted in a decline in consumer confidence and demand. Additionally, since it came out in 2019, Decree 100 has led to changes in consumer behavior and the development of new consumption habits as it prohibits people from driving an automobile or motorcycle after they consume alcohol.

Given these circumstances, businesses need to streamline operations to continue investing and developing in the Vietnamese market, thereby supporting the workforce and maintaining business activities, according to the Heineken representative.

This decision also aligns with the ambitions and responsibilities of both Vietnam and Heineken to achieve zero carbon emissions in production activities. The firm aims to optimize operations with fewer but larger-scale breweries.

The representative emphasized Heineken’s ongoing confidence in Vietnam as a promising business market and pledged to continue investing strongly in commercial operations in Quang Nam and the central region.

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