Vietnam state media says Heineken plans to close one of its breweries due to weaker demand

HANOI (Reuters): Heineken Vietnam, a unit of the world's second-largest brewer Heineken, has informed authorities about plans to close of one of its breweries in the South-East Asian country due to weak demand, state media reported on Monday.

The facility being shut down is located in the central province of Quang Nam province, the Quang Nam newspaper reported.

Heineken and its Vietnamese unit did not immediately respond to requests for comment.

"Since the Covid-19 pandemic, the economy, particularly the beer industry, has faced numerous challenges with slower economic growth affecting consumers' confidence and demand," the newspaper cited a document Heineken sent to the provincial authorities as saying.

Vietnam's tighter drink and driving laws, which have restricted the alcohol content limit for drivers to zero since 2019, had also hurt beer consumption, the document said.

The company, whose brands include Heineken, Tiger and Larue, has been operating in Quang Nam province since 2007, the report said, noting it was the smallest of Heineken's six breweries in the country.

Vietnam's finance ministry said earlier this month it was planning to hike a special consumption tax on alcoholic drinks to 100% by 2030, a move that may further hurt the industry.

(Reporting by Khanh Vu Editing by Ed Davies) - Reuters

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Aseanplus News

Vietnam's VinFast delays US electric car plant amid market slowdown
Soccer-Euro 2024 hosts Germany record fewer security incidents than expected
Philippines Air passenger plane with 57 on board overshoots runway in Palawan airport; many flights diverted to other airports
Ringgit closes easier ahead of US Fed meeting
Hundreds protest in Phnom Penh for justice in multi-million fraud case against disgraced former Tycoon
Motorcycling-Kazakhstan's MotoGP race cancelled, Misano gets two rounds
Laos education dept says spiralling rate of school dropout rate in country due to poor teaching qualities
New players emerge in fighting in Myanmar's northeast, as powerful ethnic militias intervene
Relatives to mark MH17 downing a decade on in Amsterdam, but arrest hopes fade
Self-radicalised S’porean teen, 14, and ex-public servant, 33, given ISA restriction orders

Others Also Read