Vietnamese drink over one billion liters of beer in 4 months
Although luxury tax on beer has increased, production and consumption of beer in the past four months increased by nearly 6%, reported the Ministry of Industry and Trade.
According to the Ministry’s report, Vietnam's beer production reached 1.005 billion liters, up 5.8% over the same period of 2015. In April alone, the beer output was estimated at 206 million liters. The majority of beer volume consumed in Vietnam is domestically produced.
"Beer production in January-April 2016 was stable, but the profitability of the industry declined due to the impact of the luxury tax policy which was applicable from January 2016," the Ministry of Industry and Trade’s report said, adding that the beverage consumption during this time increased 12.5% over the same period of last year.
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Currently luxury tax rate on beer is 55% and it will rise to 65% in 2018.
Le Hong Xanh, a member of the Board of Directors of the Saigon Beverage Corporation (Sabeco), said that the increase of luxury tax from the beginning of 2016 affected the business results of Sabeco because it has to pay an additional of hundreds of million US dollar of taxes in 2016.
"This will erode profits and beer prices will rise sharply," he said, adding that Sabeco was also considering the price adjustment.
The report of the Vietnam Beverage Association said that in 2015, production and consumption of beer in Vietnam reached 3.4 billion liters, an increase of 10% over the previous year and nearly 41% compared to 2010. In particular, Sabeco’s output reached 1.5 billion liters.
Vietnam is among the top countries in the world for beer consumption.
