A man carries a beer box at a shop in Vietnam. Photo: Tuoi Tre
Beer production in Vietnam reached 3.79 billion liters in 2016, representing a year-on-year increase of 9.3%, making the country one of the largest beer markets in the world, according to a report by the Ministry of Industry and Trade.
The output translates into 42 liters per capita, four liters higher than the figure recorded for 2015.
Vietnam has emerged as the largest beer consuming country in Southeast Asia and the third in Asia after Japan and China. It ranks eight worldwide in terms of beer production and 24th in terms of beer consumption, according to BIDV Securities.
The slower-than-expected growth of the local beer industry was attributable to an increase of five percentage points of the special consumption tax, which was hiked to 55% last year and is poised to be raised to 65% next year.
The beer production is projected to pick up by 10% to nearly four billion liters this year. In a pessimistic scenario, the industry may grow 3-5%, said Nguyen Van Viet, chairman of the Vietnam Beer Alcohol Beverage Association (VBA).
, in which Heineken
holds nearly a 5% stake, remains the biggest player, commanding a 42% share of the beer market. It produced over 1.6 billion liters of beer last year, followed by Heineken Vietnam with 1.1 billion liters.
According to a master plan approved by the Ministry of Industry and Trade, beer production in the country is set to reach 4.1 billion liters in 2020, 4.6 billion liters in 2025 and 5.6 billion liters in 2035.