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Why Craft Beer Brewers are Selecting Vietnam to Set-up Store in SEA

Vietnam is effectively positioned to change into a haven for Southeast Asia’s craft beer-lovers. The nation already has a deep-seated relationship with beer, and in recent times, has lured in a raft of international craft beer brewers from across the area. This is why.


In case you assume craft beer is principally for Western markets. Suppose once more.

Throughout Districts 1, 2, and three of Vietnam’s Ho Chi Minh Metropolis, it is simple to seek out craft beer breweries with operational capacities similar to these in Western nations.

Some 30 brewers have arrange in Vietnam, welcoming a wholesome circulate of shoppers each pre and post-pandemic.

Vietnam can be dwelling to the headquarters of award-winning brewer, Pasteur Road Brewing Firm, with its reputed Marou cocoa pod-infused Cyclo Stout listed a must-try by Life and Journey Asia.

Certainly, Vietnam’s craft beer business is rising not solely in dimension but additionally repute.

An summary of Vietnam’s beer market

Vietnam’s beer consumption as of 2022 was 2.2 p.c of the worldwide market, at 3.8 million kiloliters of beer yearly. This has made it the chief within the ASEAN area for beer consumption.

Key gamers dominating the market embody each home and worldwide manufacturers like Heineken, Carlsberg, Sapporo Breweries, Hanoi Beer Alcohol and Beverage Corp. (Habeco), and Saigon Alcohol Beer and Beverage Corp. (Sabeco).

That isn’t to say there is not room for extra made-in-Vietnam craft beers.

Quite the opposite, the Vietnamese craft beer market will not be solely booming but additionally injecting the business with its personal particular style of dwelling.

What makes Vietnam a sizzling spot for craft beer brewing?

Craft beer recipes in Vietnam have developed in each sort of manner resulting from Vietnam’s geographical benefits.

Vietnam is dwelling to a mess of spices and fruits, which have been extensively utilized in craft beer recipes, starting from lemongrass, ardour fruit, and beetroot to espresso and cocoa.

This implies brewers in Vietnam are much less depending on imported elements, thereby decreasing enter prices and permitting for extra aggressive costs.

The infusion of native produce has additionally set craft beer brewers in Vietnam aside from their rivals elsewhere.

For instance, the 2021 Asia Beer Championship cemented Vietnam’s place within the regional craft beer market, with 4 gold medals, equaling Singapore.

The nation can be identified for a extra relaxed authorized surroundings for craft beer brewers as they’re allowed to supply craft beers in small batches. That is versus Thailand which requires brewers to supply in portions of a minimum of 10,000 liters yearly. Because of this, many small-scale Thai brewers have shifted their manufacturing to Vietnam the place an output of as little as 1,000 liters is allowed.

There may be additionally the convenience with which craft beer will be shipped from Vietnam to Thailand. With its geographical proximity and improved logistics, Vietnam is an optimum alternative for brewers seeking to legally produce in Vietnam in small batches after which export to Thailand.

Altering attitudes in direction of beer in Vietnam

One other key issue is Vietnam’s well-educated buyer base. Era Z in Vietnam retains itself updated with world traits, particularly elite experiences like wine and craft beer tasting. They’re desirous to study simply how their drinks are made – an on-site expertise that’s frequent amongst craft beer breweries.

Beer is now much less of a commodity and extra of a tradition amongst younger generations of Vietnamese, which make up the majority of the inhabitants.

The “nhau” (intensive beer consuming at gatherings) is seen amongst 20, and 30 12 months olds on a lesser frequency. Consuming to change into intoxicated is not the primary function of consuming alcohol now that ‘tasting’ has caught on.

Center-income shoppers are additionally changing into pickier in relation to meals and drinks and the distinctive recipes and on-site brewing of home craft beers, is especially engaging to this new breed of high quality acutely aware shoppers.

Potential obstacles to development in Vietnam’s craft beer business

But it surely’s not completely easy crusing for Vietnam’s craft beer brewers.

Not too long ago, the federal government issued Determination 508/QD-TTg on 23 April, specifying that there can be a roadmap for growing the particular consumption tax (SCT) on beer and alcohol merchandise by 2030.

This might result in the imposition of a better tax price on some alcoholic drinks. At present beer attracts a SCT tax price of 65%.

A better tax imposed on craft beer will drive costs up, posing revenue issues for brewers.

Nevertheless, it could additionally spur a trading-up impact: at a better value, craft beer could also be seen as a premium or luxurious product, thus ramping up its perceived worth.

The place is Vietnam’s craft beer business headed?

Though the beer market in Vietnam is dominated by main gamers like Sabeco, Habeco, Heineken, and Carlsberg, craft beer nonetheless has its personal piece of the pie – a chunk that’s quickly increasing.

That is pushed by the provision of distinctive produce, prime circumstances for craft beer brewing, and altering attitudes amongst younger Vietnamese.

Many think about the increase of craft beer in Vietnam a fad – straightforward come and simple go.

Nevertheless, it’s extra probably that that is only the start.


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Vietnam Briefing is printed by Asian Briefing, a subsidiary of Dezan Shira & Associates. We produce materials for international buyers all through Eurasia, together with ASEAN, China, India, Indonesia, Russia & the Silk Street. For editorial issues please contact us right here and for a complementary subscription to our merchandise, please click on right here.

Dezan Shira & Associates present enterprise intelligence, due diligence, authorized, tax and advisory companies all through the Vietnam and the Asian area. We keep places of work in Hanoi and Ho Chi Minh Metropolis, in addition to all through China, South-East Asia, India, and Russia. For help with investments into Vietnam please contact us at vietnam@dezshira.com or go to us at www.dezshira.com

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