Heineken Vietnam targets net zero carbon emissions in 2030: exec

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 in Hanoi on Friday, Wietse Mutters highlighted the beer producer's achievement of renewable energy accounting for 99% of its power usage.

The executive, also head of the Dutch Business Association Vietnam, said Heineken Vietnam is committed to boosting investments in the country while pushing the "drink responsibly" program, especially the "no driving when drinking" campaign.

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 reply, Hai hailed the brewer's activities over 30 years and its efforts to reduce carbon emissions and push circular economy. The National Assembly, the highest legislative body in Vietnam, is willing to update the legal framework to facilitate activities of businesses, in line with the country's international commitments.

In Heineken performance review for the first half of this year, the global brewer said it was 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.”

The Vietnamese beer market declined by a low-single-digit in H1/2024 but showed signs of stabilizing in the second quarter, Heineken added. In Vietnam, Heineken estimated that even amid the market decline, its “net revenue increased organically in the low-teens, driven by high-single-digit volume growth.”

In its latest draft on excise tax, Vietnam’s Ministry of Finance has not taken into account Heineken’s suggestion for a hybrid tax calculation for beer. In general, there are three taxation methods – ad valorem tax (proportional to the value of the underlying asset), specific tax (constant figure), and hybrid tax as a mixed formula between ad valorem tax and specific tax.

Heineken was the only premium beer brand to make such a proposal, the ministry noted. Many businesses and agencies opposed the suggestion and wanted continuity of ad valorem tax calculation for excise duties.

The ministry clarified that hybrid tax calculation would put heavy pressure on affordable products, prompting a price hike that’s “much more” than a hike in premium product prices.