Vietnam will see rising beer production into the future, with quality control regulations set to push up prices.
Under the development plan for the alcohol industry to 2025 and vision to 2035, by 2020 total production and consumption of beer is expected to reach 4.5 billion liters (an increase of 1.3 billion liters), all types of wine 350 million liters, and other beverages 8.8 billion liters. The figures were announced yesterday at a seminar held by the Vietnam Beer - Alcohol - Beverage Association.
The seminar also heard of a shift in beer consumption among Vietnamese people, in which draft beer has seen a slight fall, bottled beer a reasonable increase, and canned beer a strong increase. “This shows that improvements in living standards affect the structure of production and consumption,” said Mr. Duong Dinh Giam, Director of the Industrial Policy and Research Institute under the Ministry of Industry and Trade (MoIT).
Mr. Phan Chi Dung, Director of the Department of Light Industry at MoIT, said that beer production capacity registered with the government now stands at 5.6 billion liters per year. There are breweries, however, that produce less than that registered, bringing actual capacity down to about 5 billion liters, of which actual production is 3.2 billion liters per year. Only in the Mekong Delta does actual production exceed registered capacity, by about 125 per cent.
Mr. Dung also confirmed that current growth in the industry is about 8 to 10 per cent annually, or about the same as many other industries. Compared to the 2005-2010 period, when growth was in the double digits, it is actually slowing down.
The seminar also discussed possible regulations for quality control stamps to appear on beer cans and bottles. If this regulation was to take effect it would cost brewers VND7 trillion ($321.65 million) per year, which would be passed on to consumers. The association believes the regulation is unnecessary, with no official decision having been made as yet.
There are currently 120 beer breweries and over 1,700 beverage production facilities in Vietnam. Production capacity for all types of wine is 100 billion liters per year. There are also some 350 million liters of “cuoc lui” wine, or traditional home-made wine, produced each year.