Due to drinking culture in Vietnam, and large population in Vietnam (90 million), Vietnam becomes a paradise to beer producers. Unfortunately, besides the opportunity, the government is setting high special consumption tax on beer, as well as many other policies that may discourage market potential

1. Vietnam beer market - Pros & Cons
These years, many industries are struggling in its development because of
worldwide economic recession. However, beer industry in Vietnam seems not to
be. In fact, it remains impressive growth in 2013, while is projected to keep
growing in 2014. According to statistics, in April 2013, beer production was 233.4
million liters of beer, a 15% change from April 2012.
According to World Health Organization (WHO), Vietnam beer consumption rate is
fastened rapidly, while consumption rate in other countries do not change in years.
It is projected Vietnam consumption rate will be 7 liter of beer/ person/ year
However, the consumption rate is at low level, compared to other countries.
According to WHO, Vietnam consumption rate is 3.5%, which is one of the lowest
rate in the world. Therefore, beer market in Vietnam is forecasted have impressive
growth rate in coming years because of:
 Large and young population in Vietnam, with more than 90 million people
 Vietnamese people are drinking beer, no matter at any age group or
gender. In 2008, 80% of male under 18 years old are recorded to drink
beer, while to female, the rate was 36%.
 In 2012, Vietnamese people spent 3 billion USD/ year for beer. It is
projected to keep increasing.
The industry is very potential, therefore many companies join the market, both
local and international. Currently, local producers are struggling to compete
against international producers:
 Local producers is limited at 10% of operating expense for marketing
activities, which is quite small to international companies with much larger
capital.
 High special consumption tax in Vietnam for beer industry which will be a
serious problem to Small & Medium Enterprise (SMEs) because of their
small profit margin.
 High special consumption tax will cause the an increase of 20-25% retail
price, which will cause an significant increase in CPI.
0
0,5
1
1,5
2
2,5
3
3,5
4
4,5
consumption rate
2001
2007
2008
2010

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Compiled by AMR Group (Marketing Research in Vietnam-Nghien Cuu Thi Truong
Viet Nam) on 2014
Source: cafef
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This article is compiled by AMR Group to provide updated information on markets. AMR
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