Alcoholic Drinks in Vietnam

Alcoholic Drinks in Vietnam
Euromonitor International
May 2021
ALCOHOLIC DRINKS IN VIETNAM Passport i
LIST OF CONTENTS AND TABLES

EXECUTIVE SUMMARY .............................................................................................................. 1
COVID-19 impact on alcoholic drinks ....................................................................................... 1
COVID-19 country impact ......................................................................................................... 1
Company response................................................................................................................... 2
Retailing shift ............................................................................................................................ 3
On-trade vs off-trade split ......................................................................................................... 3
What next for alcoholic drinks? ................................................................................................. 3
Chart 1 Alcoholic Drinks Off-Trade Volume Sales Growth Scenarios: 2018-
2025 ............................................................................................................. 4
Chart 2 Alcoholic Drinks On-Trade Volume Sales Growth Scenarios: 2018-
2025 ............................................................................................................. 5
Chart 3 Alcoholic Drinks Impact of Soft Drivers on Off-Trade Volume Sales:
2018-2025 .................................................................................................... 5
Chart 4 Alcoholic Drinks Impact of Soft Drivers on On-Trade Volume Sales:
2018-2025 .................................................................................................... 6
MARKET BACKGROUND ............................................................................................................ 6
Legislation ................................................................................................................................ 6
Summary 1 Number of On-trade Establishments by Type 2015-2020 ............................ 8
TAXATION AND DUTY LEVIES ................................................................................................... 9
Summary 2 Taxation and Duty Levies on Alcoholic Drinks 2020 .................................... 9
OPERATING ENVIRONMENT ................................................................................................... 10
Contraband/parallel trade ....................................................................................................... 10
Duty free ................................................................................................................................. 11
Cross-border/private imports .................................................................................................. 11
KEY NEW PRODUCT LAUNCHES ............................................................................................ 11
Outlook ................................................................................................................................... 11
MARKET INDICATORS ............................................................................................................. 11
Table 1 Retail Consumer Expenditure on Alcoholic Drinks 2015-2020 ................... 11
MARKET DATA .......................................................................................................................... 12
Table 2 Sales of Alcoholic Drinks by Category: Total Volume 2015-2020 .............. 12
Table 3 Sales of Alcoholic Drinks by Category: Total Value 2015-2020 ................. 12
Table 4 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2015-
2020 ........................................................................................................... 12
Table 5 Sales of Alcoholic Drinks by Category: % Total Value Growth 2015-
2020 ........................................................................................................... 12
Table 6 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade:
Volume 2020 .............................................................................................. 13
Table 7 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Value
2020 ........................................................................................................... 13
Table 8 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: %
Volume 2020 .............................................................................................. 13
Table 9 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: %
Value 2020 ................................................................................................. 13
Table 10 GBO Company Shares of Alcoholic Drinks: % Total Volume 2016-
2020 ........................................................................................................... 14
© Euromonitor International
ALCOHOLIC DRINKS IN VIETNAM Passport ii
Table 11 Distribution of Alcoholic Drinks by Format: % Off-trade Value 2015-

2020 ........................................................................................................... 14
Table 12 Distribution of Alcoholic Drinks by Format and by Category: % Off-
trade Volume 2020 ..................................................................................... 15
Table 13 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2020-
2025 ........................................................................................................... 16
Table 14 Forecast Sales of Alcoholic Drinks by Category: Total Value 2020-
2025 ........................................................................................................... 16
Table 15 Forecast Sales of Alcoholic Drinks by Category: % Total Volume
Growth 2020-2025 ..................................................................................... 16
Table 16 Forecast Sales of Alcoholic Drinks by Category: % Total Value
Growth 2020-2025 ..................................................................................... 16
DISCLAIMER ............................................................................................................................. 17
SOURCES.................................................................................................................................. 17
Summary 3 Research Sources ...................................................................................... 17
ALCOHOLIC DRINKS IN VIETNAM Passport 1
ALCOHOLIC DRINKS IN VIETNAM

EXECUTIVE SUMMARY
COVID-19 impact on alcoholic drinks

After seeing strong growth for most of the review period, alcoholic drinks recorded a double-
digit decline in total volume terms in Vietnam in 2020. There were two main reasons for the fall
in sales – new legislation and COVID-19, both of which mostly negatively affected on-trade
sales. A new law came into force in January 2020 which toughened the restrictions on drinking
and driving, implementing a zero tolerance approach. From this date, people in Vietnam were
no longer allowed to drive with any level of alcohol in their blood or breath, and the penalties for
doing so also increased sharply, with enforcement rigorous in the early stages of
implementation. Therefore, sales of alcoholic drinks were strongly affected by this new
legislation in the first months of the year. With no time to recover, COVID-19 then arrived in the
country in March, and from 1 April the government implemented a lockdown to prevent the
spread of the virus in the country. This included a ban on dine-in for consumer foodservice
outlets for several weeks, which obviously impacted sales of alcoholic drinks. Even on
reopening, social distancing limited the capacity of outlets, and some were therefore forced to
close permanently. In addition, some consumers were reluctant to return for fear of contracting
the virus.
Although the on-trade saw a far stronger decline, the off-trade was unable to recoup any of
the on-trade losses as it also saw a volume decline in 2020. This was mainly due to the
economic impact of the pandemic, which led to lower disposable incomes, and many consumers
therefore had to cut costs where possible. As non-essential products, alcoholic drinks were
amongst the first to see downtrading or be removed from consumers’ shopping lists. In addition,
the ban on large social gatherings to stop the spread of the virus limited at-home consumption
occasions. With volume declines seen both on-trade and off-trade, total volume sales of
alcoholic drinks fell strongly in 2020. Nevertheless, the performance of alcoholic drinks in this
year was actually better than the forecast performance for 2020 conducted in the first quarter of
the year. This was thanks to the fact that Vietnam controlled the COVID-19 situation well, with a
low number of infections and very few deaths. As such, Vietnam only had a short national
lockdown, which limited the decline.
All alcoholic drinks categories saw total volume declines in 2020, although performances
varied. For instance, cider/perry saw the best performance, seeing only a single-digit total
volume decline. However, this is a nascent category, and therefore its lack of maturity helped to
limit the decline. At the opposite end of the spectrum, wine saw the strongest decline, as a large
proportion of sales is to tourists, as well as higher-income consumers in urban areas. With the
number of tourist arrivals plummeting in 2020, this had a knock-on impact on sales of wine.
Spirits also saw a stronger than average decline, due to the high prices of these products. Beer
remained by far the largest category, and its decline was limited by its low unit price and low
abv, which means it can be advertised.
COVID-19 country impact

Vietnam was one of the first Asian countries to successfully contain the spread of COVID-19,
resulting in very few cases in the early stages of the pandemic. The country suspended all
flights from mainland China on 1 February 2020, followed by all international flights from 25
March. Social isolation guidelines were introduced from 1-22 April. During this period, grocery
retailers remained open, whilst many other stores were shut. In addition, social distancing of two
metres was strictly imposed in all grocery retailers. Restaurants were not allowed to offer dine-
in. Social isolation guidelines in Hanoi and Ho Chi Minh City were subsequently lifted, although
restaurants still had to comply with strict guidelines from local authorities. Schools and
businesses reopened from 4 May, but non-essential services such as bars and karaoke parlours
remained closed. The authorities in Ho Chi Minh City also permitted sports centres and indoor
sports activities, allowing gyms to reopen. In addition, the limit on public gatherings was
increased to 30 people, from a previous limit of 20.
However, restrictions had to be re-imposed in some high-risk areas later in the year. For
instance, at the end of July Da Nang saw a resurgence of the virus, leading to a 15-day
quarantine of the city and the evacuation of 80,000 people. A few days later, the neighbouring
city of Hoi An was also quarantined. All activities, including the opening of bars and clubs,
resumed in Da Nang on 25 September after it was believed to have controlled the outbreak of
COVID-19. However, Hanoi City authorities temporarily closed some bars and karaoke outlets
for failing to comply with anti-COVID-19 measures such as wearing face masks.
Furthermore, on 9 February 2021, Ho Chi Minh City authorities announced the closure of all
non-essential businesses and entertainment activities such as bars, beauty salons, gyms,
karaoke parlours, night clubs, massage parlours, and cinemas until further notice in response to
the city recording more than 25 cases in a single day. In addition, religious gatherings were
limited to 20 people and non-essential travel was discouraged. Petrol stations, retail stores,
pharmacies and medical facilities remained open, but with strict preventive measures.
Restrictions on international travel remain in place until further notice, with anyone entering the
country having to quarantine. Wearing a mask is still compulsory in all public settings, including
for all passengers on public transport, with those not complying subject to fines. The
government’s strict COVID-19 measures had kept cases to only 3,000 and deaths to only 35 by
April 2021, making it one of the countries globally least impacted by the virus. Vaccination also
started to be rolled out in the first quarter of the year, although this is progressing only slowly.
Company response
In 2020, Saigon Alcohol Beer & Beverages Corp (Sabeco) was able to maintain its leading
position in overall alcoholic drinks in total volume terms. This is because beer accounts for the
largest share of volume sales and in this year also saw the best performance of the main three
categories, beer, wine and spirits. However, Heineken Vietnam Brewery closed the gap from
Sabeco in 2020, as the latter saw a share decline and Heineken saw growth, which narrowed
the gap considerably. Heineken also dominates the smallest but best-performing category,
cider/perry. Wine and spirits were much smaller and much more fragmented categories in 2020,
with the smallest players, included under “others”, accounting for at least two thirds of sales in
each category. In fact, all the top 10 players in beer in this year were also the top players in
alcoholic drinks.
During 2020, Heineken Vietnam cut its marketing and advertising activities in order to donate
VND10 billion (USD425,000) to support COVID-19 relief efforts in Vietnam. By taking such
actions to build a strong name in the country, it is expected to weather the crisis better than
other players, such as Habeco. This is also in line with Heineken’s vision, as sustainability has
always been at the forefront of its business on a global level, as well as in Vietnam. For
instance, it focuses on limiting its impact on the environment. Five out of its six breweries
already brew with renewable thermal energy, with its new brewery set to be the first carbon-
neutral brewery in Asia.
During 2020, players such as Heineken Vietnam and Sabeco also introduced new products in
the market to attract consumers’ attention and stimulate demand. For instance, Heineken
launched the non alcoholic beer Heineken 0.0, which was well-timed well to meet the new
needs of consumers due to the drink driving legislation. Sabeco, meanwhile, launched Saigon
Chill, which is uses a cold filtered technique to offer a refreshing and unique taste. Also in 2020,
both players introduced new brands which represent the resilience, positivity and optimism of
Vietnamese people, even during hard times such as COVID-19. In the forecast period other
players will not find it easy to keep up with Sabeco and Heineken, due to their strong financial
ability, wide distribution, product launches and extensive knowledge of the beer category.
Retailing shift
Although its share of sales of alcoholic drinks declined in 2020, independent small grocers
continued to dominate the distribution of alcoholic drinks in off-trade volume terms, accounting
for two thirds of sales. Meanwhile, other distribution channels with notable and rising shares
were supermarkets, hypermarkets and convenience stores, due to the expansion of the network
of modern grocery retailers. However, it was e-commerce that saw the strongest off-trade
volume growth in 2020. Although rising from a low base, actual volume sales more than doubled
in this year, even though overall sales of alcoholic drinks saw a double-digit decline. Many
consumers turned to online shopping and home delivery not only due to its convenience, but
also due to the safety of not having to leave their homes and risk infection with COVID-19. The
majority of players, such as Heineken Vietnam and Sabeco, also pushed sales via e-commerce
as an alternative during the pandemic, and also in line with the rapid development of e-
commerce across different industries in Vietnam.
On-trade vs off-trade split

In 2019, prior to the emergence of COVID-19 in the country, off-trade sales accounted for less
than a third of total volume sales and just over a fifth of total value sales. In 2020, this channel
gained share, exceeding a third of overall volume sales and reaching more than a quarter of
value sales. Although there was a slight movement between channels, this was more limited
than in many other countries globally, as the national lockdown in the country was short due to
good control of the virus. Restaurants were also still able to sell to consumers during national
lockdown in the form of take away, although bars/pubs were forced to close for longer than
other businesses in Vietnam. However, Vietnamese consumers were still afraid of going out and
gathering with friends or colleagues like before, for fear of infection, which prolonged the impact
on the on-trade. Nevertheless, the off-trade was also negatively affected, which minimised the
channel switch. Whilst in some countries a proportion of on-trade sales moved to the off-trade,
this did not happen in Vietnam due to consumers’ concern about their finances, and therefore a
reduction in the consumption of alcoholic drinks was seen across the board during a difficult
time. A gradual reversal of the trend seen in 2020 is expected over the course of the forecast
period, returning to a channel split similar to that seen in 2019 by 2025. Vietnamese consumers
like to go out to socialise with friends, and as the impact of COVID-19 passes and incomes
recover, a return to the on-trade is expected.
What next for alcoholic drinks?

Alcoholic drinks is projected to return to growth in both on-trade and off-trade volume terms in
2021. The Vietnamese government has managed to keep the virus well-controlled in the
country, and vaccination is now being rolled out. The economy is therefore expected to rebound
rapidly and consumers are likely to regain confidence in going out and spending. As the off-
trade saw only a slow decline in 2020, a return to the level of volume sales seen pre-pandemic
is expected in 2021. However, after seeing a more significant decline, the on-trade is not set to
see a recovery to the 2019 level of volume sales until 2023. Consumers are likely to be more
reluctant to return to paying the higher prices in foodservice outlets, and will be cautious about
spending on unnecessary products. Nevertheless, Vietnam has a rising population and a low
median age, which is expected to ensure a return to solid growth for alcoholic drinks. The
younger age groups tend to drink more than older consumers, and are also more willing to move
to premium products and try novelties.
In fact, all categories are set to return to total volume growth in 2021 and for the rest of the
forecast period, as normalisation of consumer spending starts to be seen. Beer and spirits are
expected to see the slowest growth rates, as these are the most mature categories. Spirits is
also likely to suffer from the move by some consumers to alcoholic drinks with a lower abv for
health reasons, and the ban on marketing and advertising such higher abv products. However,
as beer accounts for by far the highest sales, players are expected to be active in terms of
marketing and advertising activities to try and build strong brands and gain share. Wine is set to
see the strongest total volume CAGR in the forecast period, partly because this was the hardest
hit in 2020. Although growth is set to return in 2021, the strongest increase for this category is
not set to be until 2022, as a large proportion of sales are to tourists, who are not expected to
return in large numbers until this year. In the first half of 2021, restrictions were still applied on
who could enter the country, and arrivals still had to quarantine. This requirement is expected to
be lifted by 2022, which will boost sales of wine. Cider/perry is also forecast to see a strong
increase, which is mainly because it is a fairly new category which is rising from a low base.
Sales of RTDs are likely to remain negligible.
Chart 1 Alcoholic Drinks Off-Trade Volume Sales Growth Scenarios: 2018-2025
Source: Euromonitor International
Chart 2 Alcoholic Drinks On-Trade Volume Sales Growth Scenarios: 2018-2025
Chart 3 Alcoholic Drinks Impact of Soft Drivers on Off-Trade Volume Sales: 2018-2025
Chart 4 Alcoholic Drinks Impact of Soft Drivers on On-Trade Volume Sales: 2018-2025
MARKET BACKGROUND
Legislation
Legal purchasing age and legal drinking age

▪ In 2008, a new law stated that people aged under 18 were not allowed to buy or consume
alcoholic drinks. However, since its implementation the law has been poorly enforced, as
juveniles can still easily buy alcoholic drinks.
▪ In order to help solve the issue of underage drinking, several educational programmes about
the impact of alcoholic drinks have been introduced in high schools in a collaboration between
the Ministry of Health and the Ministry of Education.
Drink driving
▪ Drink driving is a serious problem in Vietnam, with a large number of road accidents being a
result of drink driving. Official data show there were over 4,000 traffic accidents in the country
in the first quarter of 2019, leading to 1,905 deaths. Drink driving was to blame in 274
accidents.
▪ However, a new stricter drink driving law came into effect in Vietnam on 1 January 2020. It
takes a zero tolerance approach, showing the country’s efforts to crack down on drink driving
and reduce the number of traffic accidents. The Law on Alcohol Harm Prevention (Decree 24)
banned all motorcyclists and car drivers from having any level of concentration of alcohol in
their breath or blood and doubled the penalties for infringement. The law came into effect just
days before the Lunar New Year, as part of the government’s efforts to curb traffic accidents
relating to drink driving. The enforcement of the law has been hurting the operations of
restaurants, bars and beer halls, as some people are now choosing to go out less to bars. To
continue to attract customers, some bars have come up with creative ways to get patrons
home safely, such as their own transport services .
Advertising
▪ In 2014, under the provisions of the Law on Advertising, for alcoholic drinks of 15% abv or
more, advertising is prohibited. However, there is still no ban on beer advertising.
▪ The new Law on Alcohol Harm Prevention also bans the advertising of alcoholic beverages
on television and other media platforms between 18:00hrs and 21:00hrs, with the exception of
programmes relayed from foreign broadcasters. Advertising alcoholic drinks to persons under
18 years of age or employing underage actors in alcohol advertisements is also strictly
banned under the new law. Decree 24 provides an exception for advertisements for alcoholic
beverages under 5.5% abv appearing between 18.00hrs and 21.00 hrs, provided that the
advertisement is for the venue sponsor of a regional, continental or world sporting event held
in Vietnam during live broadcasting.
▪ The law also requires advertisements for alcohol below 15% abv include health warnings,
which must cover at least 10% of the area of the advertisement, and stores must post signs
announcing the ban on alcohol sales to those younger than 18. With regard to audio and
broadcast advertisements, warnings must be read aloud and at the same speed as all other
content of the advertisement. Decree 24 provides for three specific warnings that must be
displayed on alcohol advertisements, including “drinking alcoholic beverages can cause traffic
accidents”, “drinking alcoholic beverages can affect foetal health” and “people under the age
of 18 are not allowed to drink alcoholic beverages".
▪ According to Decree 24, outdoor advertising for alcoholic beverages under 5.5% abv must
meet national technical standards on size and appear at a minimum distance of 200m from
educational and recreational institutions for minors, and at a minimum distance of 100m from
vocational training establishments and universities, except for signboards for establishments
trading alcoholic drinks.
▪ In response to the law, players in spirits and wine have to promote their products through on-
trade establishments such as bars and restaurants. Commercial posters and promotions are
common practices to attract consumers in restaurants. Wine traders also take advantage of
posters in retail outlets, as well as wine-tasting events.
Smoking ban
▪ Smoking in public areas, including healthcare and nursing facilities, educational institutions,
libraries and public transportation, was already banned in Vietnam. However, Decree 24
extended the list of places where smoking is banned to include parks, bus stations, cinemas,
theatres and cultural and sport establishments.
▪ The administrative penalties for violations of regulations on smoking are based on article 23 of
Decree No 176/2013/ND-CP, as follows:
▪ - A warning or a fine of VND100,000 to VND300,000 for one of the following acts: a)
Smoking in prohibited places; b) Leaving cigarette ash or ends in improper places.
▪ - A fine of between VND3 million and VND5 million for one of the following acts: a) No sign
with the word or symbol “smoking ban” in places banning smoking; b) The offender is not
required to stop smoking in an establishment; c) The owners of a facility do not organise,
guide, inspect and supervise the implementation of regulations banning smoking in places
under their management and administration.
▪ - A fine of between VND5 million and VND10 million for one of the following acts in places
reserved for smokers: a) No room ventilation and separate tobacco smoking area; b) No
container for cigarette ash or ends; c) No prominent signs at appropriate locations; d) No
firefighting equipment.
▪ Despite the law, smoking in public is still evident in the country. In some high-end restaurants,
a non-smoking area has been made available, but such areas are usually smaller than the
smoking areas.
▪ Generally, Vietnamese men have the habit of smoking and drinking together. This leads to a
suggestion that cutting the number of places in which smoking is allowed might result in a
reduction in the general consumption of alcoholic drinks in the country.
Opening hours
▪ For off-trade outlets, there are no defined operating hours for the sale of alcoholic drinks.
Consumers can buy products during an outlet’s regular opening hours. On-trade outlets are
banned from operating between 24.00hrs and 08.00hrs. Only bars in tourist accommodation
rated 3-star or higher are allowed to operate after 24.00hrs, but no later than 02.00hrs.
On-trade establishments
▪ On-trade sales have been severely hit by COVID-19 due to the national lockdown and social
distancing. Together with the new law on drink driving, Vietnamese consumers reduced the
number of times they went out to gather with friends and colleagues in 2020.
▪ The number of on-trade outlets also showed a decline in 2020, as less profitable outlets had
to close due to COVID-19 and stricter drink driving laws.
Summary 1 Number of On-trade Establishments by Type 2015-2020

2015 2016 2017 2018 2019 2020
Cafés/bars 28,837 29,389 29,737 30,011 31,813 33,145
Full- 111,259 116,826 122,220 127,690 133,020 128,346

service
restaurants
Limited- 8,910 9,288 9,616 9,913 10,295 9,962

service
restaurants
Self- - - - - - -
service
cafeterias
Street 148,596 149,156 149,594 149,950 150,258 142,891

stalls/kiosk
s
Total 297,602 304,659 311,167 317,564 325,386 314,344
TAXATION AND DUTY LEVIES

▪ From May 2001, based on Decree 46/2001/QD-TTG, alcoholic drinks could be imported into
Vietnam without licensing and quotas. Taxation on alcoholic drinks in Vietnam comprises
import tax, special tax and sales tax.
▪ In terms of import taxes, Vietnam has various trade agreements which dictate the import
taxes on alcoholic drinks from different countries, as laid out in the table below. Furthermore,
for alcoholic drinks imported from the EU, Vietnam has imposed a new preferential import
tariff of 65% on a number of specific wine and spirits products.
▪ Besides import taxes, alcoholic drinks face the Special Consumption Tax (SCT). This is a type
of excise duty, but at a higher level. For imported products, SCT is calculated based on the
CIF price plus import tax, and is based on the manufacturer’s selling price (msp) for locally-
produced products. From 2014, the SCT for all types of beer, including barrel beer, was 50%.
For alcoholic drinks of 20% abv and over, the SCT rate increased to 65% from 1 January
2018. For wine and spirits below 20% abv, the SCT rate increased to 35% on 1 January 2018.
▪ Sales tax in Vietnam (VAT) is 10% for all alcoholic drinks. The government is likely to
maintain this rate in the future.
Summary 2 Taxation and Duty Levies on Alcoholic Drinks 2020

Excise tax (%)
Wine and spirits
20% abv and above 65
Below 20% abv 35
Beer 65
Import tax (%)
ASEAN (ATIGA)
Beer 0
Grape wine 0
Flavoured grape wine and vermouth 0
Non-grape wine (incl sake) 0
India (AIFTA)
Beer 65
Grape wine 65
Korea (AKFTA)
Beer 0
Grape wine 0
China (ACFTA)
Beer 0
Grape wine 0
Japan (VJEPA)
Beer 65
Grape wine 65
Non-grape wine (excl sake) 65
Sake 16
VAT (%) 10
OPERATING ENVIRONMENT
Contraband/parallel trade
Contraband/parallel trade is an issue in alcoholic drinks in Vietnam, with this trade occurring
mostly in spirits, which offers the most profit to smugglers. It is estimated that 80-90% of the
spirits sold are contraband. This type of trade is prominent as the import tax on alcoholic drinks
is very high. The prices of contraband products are usually 30-50% lower than the prices in
official off-trade outlets. Hennessy, Rémy Martin, Martell Cordon Bleu and Johnnie Walker are
brands that are often sold through contraband/parallel trade. On the other hand, wine and beer
are mostly absent in contraband/parallel trade. Most beer brands are manufactured locally and
benefit from a lower tax rate, resulting in lower prices than for spirits. Demand for wine is lower
than for spirits, so the potential profits on trading wine via contraband/parallel channels are more
limited. Counterfeiting and smuggling have been major concerns for the government, as well as
consumers in Vietnam. As the profits on illegal products are enormous, counterfeiters and
smugglers are willing to take the risk of breaking the law for this profitable business. This
problem negatively affects the potential growth of spirits and reduces the government’s revenue
streams, as well as potentially harming consumers’ health.
Liquor and beer traded and circulated in Vietnam must conform to standards and technical
regulations and satisfy the prescribed product and goods quality requirements as well as food
safety conditions. Counterfeit liquor, beer products failing to ensure food quality and safety, and
smuggled liquor and beer of unclear origin are confiscated and disposed of in accordance with
the law.
Duty free
Duty free is a sales channel for travellers arriving in and leaving Vietnam, with alcoholic drinks
mostly purchased as gifts. Even in a normal year, this channel accounts for only a small
proportion of off-trade sales and does not affect sales of alcoholic drinks in the main off-trade
and on-trade channels. In 2020, with the closure of borders, this proportion fell even further.
Cross-border/private imports
Whiskies and local spirits are privately imported into Vietnam from neighbouring countries
such as Cambodia, Thailand and Laos. These products avoid tax so they are able to offer
cheaper prices and high alcohol content. As a result, they are widely consumed. However, the
sales margins on these products are not very high and they do not have a major impact on
overall sales of alcoholic drinks in the domestic market.
KEY NEW PRODUCT LAUNCHES

Heineken Vietnam introduced Heineken 0.0 to respond to the new law on drink driving which
came into force in January 2020. Meanwhile, Sabeco introduced Saigon Chill, which is a cold
filtered beer which offers a refreshing and unique taste. Also in 2020, both Heineken Vietnam
and Sabeco introduced other new brands, Bia Viet and Lac Viet respectively. Both brands
represent the fact that Vietnamese people are always positive and optimistic, even during
difficulties such as COVID-19.
Outlook
Over the forecast period, non/low alcohol beer is expected to gain a stronger presence in
Vietnam as a result of the new law on drink driving.
MARKET INDICATORS
Table 1 Retail Consumer Expenditure on Alcoholic Drinks 2015-2020
VND million
2015 2016 2017 2018 2019 2020
Total 30,380,8 32,393,9 33,759,3 34,410,7 38,946,2 41,852,7

86.1 02.8 37.2 62.2 53.1 16.2
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note: 2019 data is forecast
MARKET DATA
Table 2 Sales of Alcoholic Drinks by Category: Total Volume 2015-2020
2015 2016 2017 2018 2019 2020
Beer (million litres) 3,765.0 4,097.1 4,328.3 4,533.4 4,914.7 4,234.1

Cider/Perry ('000 litres) - 571.4 794.1 1,024.6 1,306.1 1,190.7
RTDs ('000 litres) - - - - - -
Spirits ('000 litres) 50,593.3 54,607.0 57,752.0 59,204.1 60,388.9 49,121.8
Wine (million litres) 39.3 41.4 43.3 45.3 47.2 35.6
Alcoholic Drinks 3,854.8 4,193.7 4,430.2 4,638.9 5,023.6 4,319.9
(million litres)
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 3 Sales of Alcoholic Drinks by Category: Total Value 2015-2020
VND billion
2015 2016 2017 2018 2019 2020
Beer 148,152.4 166,423.8 184,459.5 204,503.0 228,236.4 202,903.4

Cider/Perry - 54.4 78.3 101.8 131.4 122.3
RTDs - - - - - -
Spirits 21,958.8 23,535.0 25,709.9 27,317.8 28,956.9 23,089.1
Wine 8,314.7 9,207.5 10,221.8 11,264.1 12,249.7 9,231.7
Table 4 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2015-2020
% total volume growth

2019/20 2015-20 CAGR 2015/20 Total
Beer -13.8 2.4 12.5

Cider/Perry -8.8 - -
RTDs - - -
Spirits -18.7 -0.6 -2.9
Wine -24.7 -2.0 -9.5
Alcoholic Drinks -14.0 2.3 12.1
Table 5 Sales of Alcoholic Drinks by Category: % Total Value Growth 2015-2020
% local currency, current value growth
2019/20 2015-20 CAGR 2015/20 Total
Beer -11.1 6.5 37.0

Cider/Perry -6.9 - -
RTDs - - -
Spirits -20.3 1.0 5.1
Wine -24.6 2.1 11.0
Alcoholic Drinks -12.7 5.7 31.9
Table 6 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Volume 2020
Off-trade On-trade Total
Beer (million litres) 1,456.6 2,777.5 4,234.1

Cider/Perry ('000 litres) 387.8 802.9 1,190.7
RTDs ('000 litres) - - -
Spirits ('000 litres) 16,622.1 32,499.7 49,121.8
Wine (million litres) 12.9 22.7 35.6
Alcoholic Drinks (million litres) 1,486.5 2,833.5 4,319.9
Table 7 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Value 2020
VND billion
Beer 54,932.9 147,970.6 202,903.4

Cider/Perry 23.7 98.6 122.3
RTDs - - -
Spirits 4,672.9 18,416.2 23,089.1
Wine 1,956.2 7,275.6 9,231.7
Alcoholic Drinks 61,585.6 173,761.0 235,346.6
Table 8 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Volume 2020
% volume analysis
Beer 34.4 65.6 100.0

Cider/Perry 32.6 67.4 100.0
RTDs - - -
Spirits 33.8 66.2 100.0
Wine 36.3 63.7 100.0
Alcoholic Drinks 34.4 65.6 100.0
Table 9 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Value 2020
% value analysis
Beer 27.1 72.9 100.0

Cider/Perry 19.4 80.6 100.0
RTDs - - -
Spirits 20.2 79.8 100.0
Wine 21.2 78.8 100.0
Table 10 GBO Company Shares of Alcoholic Drinks: % Total Volume 2016-2020
% total volume
Company 2016 2017 2018 2019 2020
Thai Beverage PCL - 37.6 38.6 38.7 36.2

Heineken NV 29.4 29.9 31.5 32.8 35.6
Hanoi Alcohol Beer & 15.2 13.5 12.0 11.3 10.9
Beverages Corp (Habeco)
Carlsberg A/S 7.0 6.9 6.6 6.7 7.3
San Miguel Corp 0.8 0.8 0.9 0.9 1.2
Sapporo Holdings Ltd 1.3 1.3 1.3 1.2 1.0
Anheuser-Busch InBev NV 0.4 0.4 0.4 0.5 0.5
Oetker-Gruppe 0.3 0.3 0.3 0.3 0.2
Thang Long Liquor JSC 0.2 0.2 0.2 0.2 0.2
Bitburger Braugruppe GmbH 0.1 0.1 0.1 0.1 0.1
Others 45.4 8.9 8.1 7.2 6.9
Total 100.0 100.0 100.0 100.0 100.0
Table 11 Distribution of Alcoholic Drinks by Format: % Off-trade Value 2015-2020
% off-trade
2015 2016 2017 2018 2019 2020
Store-Based Retailing 100.0 100.0 99.4 99.1 98.8 97.6

- Grocery Retailers 100.0 100.0 99.4 99.1 98.8 97.6
-- Modern Grocery 17.5 18.1 18.5 18.4 19.1 21.6
Retailers
--- Convenience Stores 0.8 1.2 1.4 1.6 1.8 2.3
--- Discounters - - - - - -
--- Forecourt Retailers - - - - - -
--- Hypermarkets 4.9 4.9 4.9 4.8 4.8 5.6
--- Supermarkets 11.9 12.0 12.1 12.0 12.5 13.7
-- Traditional Grocery 82.5 81.9 80.9 80.8 79.7 75.9
Retailers
--- Food/drink/tobacco 20.2 20.8 21.3 21.0 20.8 22.3
specialists
--- Independent Small 62.0 60.8 59.4 59.6 58.8 53.4
Grocers
--- Other Grocery 0.3 0.2 0.2 0.2 0.2 0.2
Retailers
- Non-Grocery Specialists - - - - - -
-- Drugstores/ - - - - - -
parapharmacies
-- Other Non-Grocery - - - - - -
Alcoholic Drinks
Specialists
- Mixed Retailers - - - - - -
-- Department Stores - - - - - -
-- Mass Merchandisers - - - - - -
-- Variety Stores - - - - - -
-- Warehouse Clubs - - - - - -
Non-Store Retailing - - 0.6 0.9 1.2 2.4
- Direct Selling - - - - - -
- Homeshopping - - - - - -
- E-Commerce - - 0.6 0.9 1.2 2.4
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 12 Distribution of Alcoholic Drinks by Format and by Category: % Off-trade Volume

2020
% off-trade
Beer Cider/Perry RTDs Spirits Wine
Store-Based Retailing 97.7 97.6 0.0 100.0 99.2

- Grocery Retailers 97.7 97.6 0.0 100.0 99.2
-- Modern Grocery 21.6 39.8 0.0 18.7 32.4
Retailers
--- Convenience Stores 2.2 6.6 0.0 1.3 0.7
--- Discounters 0.0 0.0 0.0 0.0 0.0
--- Forecourt Retailers 0.0 0.0 0.0 0.0 0.0
--- Hypermarkets 5.8 12.5 0.0 6.5 8.9
--- Supermarkets 13.6 20.7 0.0 10.9 22.8
-- Traditional Grocery 76.1 57.8 0.0 81.3 66.8
Retailers
--- Food/drink/tobacco 8.6 6.6 0.0 11.5 18.4
specialists
--- Independent Small 67.5 0.0 0.0 69.8 48.4
Grocers
--- Other Grocery 0.0 51.2 0.0 0.0 0.0
Retailers
- Non-Grocery Specialists 0.0 0.0 0.0 0.0 0.0
-- Drugstores/ 0.0 0.0 0.0 0.0 0.0
parapharmacies
-- Other Non-Grocery 0.0 0.0 0.0 0.0 0.0
Alcoholic Drinks
Specialists
- Mixed Retailers 0.0 0.0 0.0 0.0 0.0
-- Department Stores 0.0 0.0 0.0 0.0 0.0
-- Mass Merchandisers 0.0 0.0 0.0 0.0 0.0
-- Variety Stores 0.0 0.0 0.0 0.0 0.0
-- Warehouse Clubs 0.0 0.0 0.0 0.0 0.0
Non-Store Retailing 2.3 2.4 0.0 0.0 0.8
- Direct Selling 0.0 0.0 0.0 0.0 0.0
- Homeshopping 0.0 0.0 0.0 0.0 0.0
- E-Commerce 2.3 2.4 0.0 0.0 0.8
- Vending 0.0 0.0 0.0 0.0 0.0
Total 100.0 100.0 0.0 100.0 100.0
Table 13 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2020-2025
Million litres
2020 2021 2022 2023 2024 2025
Beer 4,234.1 4,543.8 4,780.2 5,001.1 5,180.8 5,342.5

Cider/Perry 1.2 1.3 1.4 1.5 1.6 1.7
RTDs - - - - - -
Spirits 49.1 52.3 56.6 58.9 60.6 62.1
Wine 35.6 38.6 44.0 46.8 49.0 51.1
trade sources
Table 14 Forecast Sales of Alcoholic Drinks by Category: Total Value 2020-2025
VND billion
2020 2021 2022 2023 2024 2025
Beer 202,903.4 220,460.4 234,777.4 248,150.5 259,660.4 270,485.4

Cider/Perry 122.3 130.1 141.8 153.6 165.7 178.4
RTDs - - - - - -
Spirits 23,089.1 25,108.9 28,040.1 29,368.7 30,537.9 31,638.4
Wine 9,231.7 9,987.0 11,011.3 11,766.3 12,476.2 13,163.0
trade sources
Table 15 Forecast Sales of Alcoholic Drinks by Category: % Total Volume Growth 2020-
2025
% total volume growth

2020/21 2020-25 CAGR 2020/25 Total
Beer 7.3 4.8 26.2

Cider/Perry 5.7 7.2 41.4
RTDs - - -
Spirits 6.5 4.8 26.4
Wine 8.6 7.5 43.8
trade sources
Table 16 Forecast Sales of Alcoholic Drinks by Category: % Total Value Growth 2020-
2025
% local currency, constant value growth
2020/2021 2020-25 CAGR 2020/25 Total
Beer 8.7 5.9 33.3
Cider/Perry 6.4 7.8 45.9

RTDs - - -
Spirits 8.7 6.5 37.0
Wine 8.2 7.4 42.6
trade sources
DISCLAIMER
Forecast and scenario closing date: 3 May 2021
Report closing date: 11 May 2021
Analysis and data in this report give full consideration to consumer behaviour and market
performance in 2021 and beyond as of the dates above. For the very latest insight on this
industry and consumer behaviour, at both global and national level, readers can access
strategic analysis and updates on www.euromonitor.com and via the Passport system, where
new content is being added on a systematic basis.
SOURCES
Sources used during the research included the following:
Summary 3 Research Sources

Official Sources Center for Information Industry & Commerce -
Ministry of Industry & Trade (VITIC)
Chamber of Commerce & Industry
General Department of Statistics
General Department of Taxation
General Department of Vietnam Customs
General Statistics Office of Vietnam (GSO)
Japan Customs Office
Korean International Trade Association
Trade Associations Bureau National Interprofessionnel du Cognac

(BNIC)
Cámara Nacional de la Industria Tequilera
Comité Interprofessionnel du Vin de

Champagne (CIVC)
Office International de la Vigne et du Vin
Office of Vietnam Association of Beer-Wine-

Beverage
Poste d'Expansion Economique
Scotch Whisky Association
Vietnam Alcohol Beers Beverages Association
Vietnam Association of Beer, Wine &

Beverage (VBA)
Vietnam Beverage Association
Vietnam Chamber Of Commerce & Industry
Trade Press Bao Cong Thuong
Beer World
Beverage Daily
Beverage World
BizLIVE
Brands Vietnam
Café F
CAND Online
Dien Dan Doanh Nghiep Online
Dow Jones Business News
Drinks International
Gia Lai Online
Ha Noi Moi
Moi Truong & Phap Luat Online
Nguoi Lao Dong
Nhip Song So Online
Nikkei
Quang Ngai News
Sai Gon Giai Phong
Saigon Economic Times
Saigon Tiep Thi
Saigon Times Weekly
Saigon Times, The
Salut Vietnam
Thanh Hoa News
Thao Van Hoa, The
Thoi Bao Tai Chinh Vietnam Online
Tuoi Tre Online
VGP News
Vietnam Beverage Magazine
Vietnam Business Forum
Vietnam Economic Times
Vietnam Investment Review
Vietnam News
Vnexpress
VTC News
Wine & Spirits International
World Drink Trends

Alcoholic Drinks in Vietnam

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LIST OF CONTENTS AND TABLES

Table 11 Distribution of Alcoholic Drinks by Format: % Off-trade Value 2015-

ALCOHOLIC DRINKS IN VIETNAM

COVID-19 impact on alcoholic drinks

COVID-19 country impact

On-trade vs off-trade split

What next for alcoholic drinks?

Chart 1 Alcoholic Drinks Off-Trade Volume Sales Growth Scenarios: 2018-2025

Source: Euromonitor International

Chart 2 Alcoholic Drinks On-Trade Volume Sales Growth Scenarios: 2018-2025

Source: Euromonitor International

Source: Euromonitor International

Source: Euromonitor International

Legal purchasing age and legal drinking age

Summary 1 Number of On-trade Establishments by Type 2015-2020

Cafés/bars 28,837 29,389 29,737 30,011 31,813 33,145

Full- 111,259 116,826 122,220 127,690 133,020 128,346

Limited- 8,910 9,288 9,616 9,913 10,295 9,962

Street 148,596 149,156 149,594 149,950 150,258 142,891

Total 297,602 304,659 311,167 317,564 325,386 314,344

Source: Euromonitor International

TAXATION AND DUTY LEVIES

Summary 2 Taxation and Duty Levies on Alcoholic Drinks 2020

Wine and spirits

20% abv and above 65

Below 20% abv 35

Import tax (%)

Flavoured grape wine and vermouth 0

Non-grape wine (incl sake) 0

Flavoured grape wine and vermouth 65

Non-grape wine (incl sake) 65

Flavoured grape wine and vermouth 0

Non-grape wine (incl sake) 0

Flavoured grape wine and vermouth 0

Non-grape wine (incl sake) 0

Flavoured grape wine and vermouth 65

Non-grape wine (excl sake) 65

Source: Euromonitor International

KEY NEW PRODUCT LAUNCHES

Total 30,380,8 32,393,9 33,759,3 34,410,7 38,946,2 41,852,7

2015 2016 2017 2018 2019 2020

Beer (million litres) 3,765.0 4,097.1 4,328.3 4,533.4 4,914.7 4,234.1

Table 3 Sales of Alcoholic Drinks by Category: Total Value 2015-2020

Beer 148,152.4 166,423.8 184,459.5 204,503.0 228,236.4 202,903.4

Table 4 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2015-2020

% total volume growth

Beer -13.8 2.4 12.5

Table 5 Sales of Alcoholic Drinks by Category: % Total Value Growth 2015-2020

% local currency, current value growth

2019/20 2015-20 CAGR 2015/20 Total

Beer -11.1 6.5 37.0

Table 6 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Volume 2020

Off-trade On-trade Total

Beer (million litres) 1,456.6 2,777.5 4,234.1

Table 7 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Value 2020

Beer 54,932.9 147,970.6 202,903.4

Table 8 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Volume 2020

Beer 34.4 65.6 100.0