Vietnamese beer market stabilizing: Heineken

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.”

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.”

Regarding the government’s Decree 100/2019 with strict penalties for drunk driving, Heineken affirmed its premium segment and on-trade “continue to be impacted disproportionately relative to the rest of the market.”

Heineken brand sales volume rose by over 60% year-on-year, led by Heineken Silver, which recorded its 11th consecutive quarter of growth and supported its stable share in the premium segment, the brewer said.

For the rest of the portfolio, brands Bia Viet and Bivina also grew by double-digits, as Heineken continues to strengthen its mainstream portfolio and expand into regions outside of our strongholds, according to the report.

About its global results in H1/2024, Heineken said it revenue increased 2.2% year-on-year to EUR17,823 million ($19,283 million), while its revenue per before exceptional items and amortization-beia formula increased 5.9% organically to EUR17,812 million.

In December 2022, Heineken CEO Dolf van den Brink told Prime Minister Pham Minh Chinh that the company would pour a further $500 million into Vietnam in the coming years.

In June 2023, Heineken received an investment certificate to expand its factory in Ba Ria-Vung Tau province. The firm plans to start construction of a $540-million factory expansion project in the southern 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 at 220 million liters. In June 2024, Heineken Vietnam announced it had suspended operations at the Quang Nam factory due to multiple challenges in the local market.