Vietnam, one of the world's thirstiest countries, drank over 1 billion liters of beer in the first four months of 2016.
Whether it was your standard Saigon Special, a fancy craft beer or the brew made out of a bird's nest, consumption climbed up 6% compared to the same period last year, reports VnExpress. In April alone, local drinkers downed 206 million liters of beer.
Though these statistics, released in an industry report from the Ministry of Industry and Trade, are a good sign for the country's beer producers, a recent increase in the special consumption tax on beer – which climbed to 55% at the start of 2016 – is bringing profits down.
According to Saigon Beer, Alcohol and Beverage Corporation (Sabeco) board member Le Hong Xanh, this year's tax hike has caused his company to pay out trillions more, resulting in lost profits.
“This will erode profits and cause beer prices to rise sharply,” Xanh told VnExpress. As a result of the change, Sabeco is considering a price adjustment on its product, according to Xanh. According to the government's plan, special consumption tax will rise again in 2018 to 65%.
While Vietnam has long been enthusiastic about its beer and its roadside drinking culture, consumption has gone up a considerable amount in recent years. Beer drinkers consumed 3.4 billion liters in 2015, a 10% increase from the previous year and a staggering 41% jump from 2010.
Moving forward, local brewers are looking to expand their operations beyond Vietnam's borders to other ASEAN countries and are really pushing Vietnamese within the country to support their product.
[Photo via The New Lens]
