Cheers To HCMC’s Nightlife, But Breweries Struggle To Tap In
In 2023, beer sales plunged by 11%, leading to a sharp 23% decline in profits for major breweries like Sabeco and Habeco.
Ho Chi Minh City’s nightlife scene has gained global recognition for its affordability, with British travel magazine Time Out ranking it sixth among the world’s top 10 cheapest nightlife destinations. According to the magazine, enjoying a night out in Vietnam’s business district will only cost €10.04 or VND269,476.22. However, amidst this acclaim lies a contrasting narrative of economic struggle within the city’s beer industry.
Recent data from the Vietnam Beer - Alcohol - Beverage Association (VBA) paints a grim picture of the local brewery sector. In 2023, beer sales plunged by 11%, leading to a sharp 23% decline in profits for major breweries like Sabeco and Habeco.
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The beer consumption downturn is partly attributed to the government’s stringent anti-drunk driving policies. The VBA reports a significant drop in beer orders, particularly from restaurants and eateries, as the ban on alcohol consumption while driving takes its toll on consumption patterns.
Moreover, rising costs of ingredients and materials, coupled with consumer frugality in the face of economic uncertainties, further exacerbate the industry’s woes. This economic strain is compounded by looming excise tax hikes proposed by the Ministry of Finance, which could further impede the industry’s recovery.
While Ho Chi Minh City celebrates its reputation as an affordable nightlife destination, the city grapples with the sobering reality of a struggling beer industry. This juxtaposition underscores the complex interplay between tourism appeal and economic sustainability in Vietnam’s urban landscape.