Nguyen Van Viet, chairman of the Vietnam Beer-Alcohol-Beverage Association What is your assessment of the beer, wine, and spirits market in the past year, along with the efforts of companies to take on new challenges? The beer, wine, and spirits sector has undergone three decades of development. Many years ago it was one of the sectors bogged down in difficulties due to the chronic shortage of input materials, while foreign goods – particularly Chinese items – overwhelmed the domestic market. With the clear-sighted leadership of the government, the sector has gradually consolidated its footing and managed stable on-year growth. From last January, the Law on Prevention and Control of Harms of Liquor and Beer Abuse came into force, and shortly after that was the enactment of a decree featuring heavier sanctions on drivers with alcohol on their breath. After the pandemic approached in March, the sector had almost been paralysed in the wake of these factors. Earlier last year, the tax authorities even delivered a forecast of a possible loss of more than VND30 trillion ($1.3 billion) in tax payments. The sector’s contribution is significant given the fact that each year the alcoholic beverage sector contributes more than VND50 trillion ($2.2 billion) to the state coffers with its revenue doubling that level. From the second quarter last year, the government began to deploy wide-ranging measures to support businesses. Although players in the sector were not direct beneficiaries of this support, improved performance by other sectors is a favour factor to their growth. New circumstances have prompted businesses to adopt innovative measures in order to get ahead. Businesses launched products directly serving consumer needs, for instance the rollout of non-alcoholic drinks and fruit-based beverages that are selling well. These include Saigon Chill and Lac Viet from SABECO, HEINEKEN’s non-alcoholic offering, and Habeco’s canned draught beer. Businesses …
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