Heineken value chain halves to 0.5% of Vietnam GDP in 2023

Heineken Vietnam’s value chain added value equivalent to 0.5% of GDP to the economy in 2023, according to the brewer’s sustainability report 2023 released Tuesday.

The figure is half of the 1.07% recorded in 2022. In its 2022 report, the beer giant said VND72.7 trillion ($2.95 billion) of value was added to the economy via its value chain.

In the 2023 report, the beverage major said it created 172,500 jobs through its value chain, down from 246,000 in 2022.

Heineken Vietnam noted it used renewable energy for 99% of production in Vietnam, up from 96% in 2022.

Heineken Vietnam is committed to allocating VND30 billion ($1.22 million) to conserve three billion liters of water annually in 2022-2025, according to the report.

The Vietnamese beer market declined by a low-single-digit in the first half of this year, but showed signs of stabilizing in the second quarter, Heineken said in its review for H1/2024.

Reviewing the Asia Pacific region, Heineken said it is ready to gain a larger and profitable share of the region in line with its growth prospects amid short-term challenges, especially in Vietnam as its “largest and most profitable market.”

Heineken Vietnam strives to reach net zero carbon emissions in 2030, managing director Wietse Mutters told National Assembly Vice Chairman Nguyen Duc Hai, at a meeting last month.

The executive, who started his term in Vietnam on August 1, also suggested the government and the National Assembly continue facilitating businesses' operations, especially tax policies, in order to encourage firms to make better products.

In June, Heineken Vietnam suspended operations at its factory in the central province of Quang Nam, citing multiple challenges in the local market. The firm plans to start construction of a $540-million factory expansion project in Ba Ria-Vung Tau province late this year to increase annual output by 500 million liters.

500 million liters a year is more than twice the annual output of the Heineken factory in Quang Nam province (220 million liters).