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
