HEINEKEN closes breweries in Quang Nam due to shrinking demand

The factory has been in operation since 2007 in Dien Nam-Dien Ngoc Industrial Park, Dien Ban town, Quang Nam province. This is the smallest of HEINEKEN's six breweries in Vietnam.

The factory made a significant contribution to the local budget, an average of VND1–2 trillion ($39.3–78.6 million) per year pre-pandemic. However, this figure has plunged over the past few years. In the first three months of 2024, the Dutch brewer only contributed VND20 billion ($1.2 million) to the provincial state budget.

Since the pandemic, many sectors, including the beer industry, have faced enormous challenges due to the slowdown in economic growth, which has dampened customer demand and confidence.

Following the implementation of Decree No.100/2019/ND-CP stipulating heavy fines for drink-driving, customers have also changed their consumption habits. As a result, the beer market experienced a double-digit decline in 2023 and posted a mid-single digit decline so far this year.

"To optimise its production and business, HEINEKEN decided to streamline operations and temporarily suspend the factory in Quang Nam," HEINEKEN said.

The company will relocate some of the impacted employees from Quang Nam to other HEINEKEN breweries in Vietnam.

The decision also aligns with the ambition and responsibility of Vietnam and HEINEKEN Vietnam towards the net-zero goal in manufacturing.

Since 1991, HEINEKEN has been operating in the Southeast Asian country through HEINEKEN Vietnam, a joint venture with local firm Saigon Trading Group.

The Dutch brewer said to have made over $1.1 billion in investments in Vietnam, and its breweries directly employ more than 3,000 people, contributing 1.04 per cent of the country's GDP.

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