Vietnam beer market falls 6% in Q2 due to economic slowdown: Carlsberg

The Vietnamese beer market declined 6% in the second quarter of this year due to the macroeconomic slowdown, but finished flat for the first half, said Carlsberg CEO Cees’t Hart.

The executive made the statement in a review of the beer giant’s performance in H1/2023. Carlsberg’s sales volume in Vietnam slowed in Q2/2023, but still posted low double-digit growth in H1, the executive said.

Carlsberg’s increase was attributed to strong growth of international premium brands, namely 1664 Blanc, Carlsberg, and Tuborg, along with the growth of its local mainstream brand Huda, Hart added.

Reviewing the Asian market, Carlsberg reported the total volume in the region grew 4.8% in H1 to 28.1 million hectoliters, along with a slower pace of 4.7% in Q2. Particularly good performances were recorded in China, Laos, Vietnam, and India.

Despite the strong top-line growth, the operating margin declined by 140 basis points to 24.3% due to a significant increase in sales and marketing investments, particularly in Vietnam, the Danish brewer emphasized.

Carlsberg’s revenue rose 11.7% year-on-year to DKK13,051 million ($1.9 billion) in Asia in H1, while the operating profit went up 8.1% to DKK2,168 million ($316.3 million).

For another brewer, Heineken, Vietnam contributed significantly to a 5.6% year-on-year fall in the giant's global sales in H1/2023, it said in its report. Heineken said the economic slowdown in Vietnam, especially in major cities, continued into Q2 and disproportionally impacted the premium beer segment.

In particular, Heineken’s net revenue in Vietnam declined by over 20% as the result of a 25% fall in sales volume. The brewer estimated that the total market was down by high single-digits in Q2, according to CEO Dolf van den Brink.