Enterprises in the beer and wine industry are currently facing significant challenges due to the impact of Decree 100’s strict drink driving penalties and the rising prices of raw materials.The economic downturn has had a negative effect on businesses in the beer and alcohol industry, leading to a decline in their financial performance.Domestic beer industry enterprises have reported numerous difficulties, including high prices for imported raw materials, weakened consumer demand due to reduced discretionary spending, and the need to strengthen advertising, promotions and discount policies to boost sales and protect their market share.The Việt Nam Beer - Alcohol - Beverage Association (VBA) has stated that the beer industry was severely affected by the prolonged social distancing measures imposed during the COVID-19 pandemic, as well as by specialised management policies and Decree 100. This decree imposes heavy sanctions for driving with a high concentration of alcohol in the blood or breath, thereby impacting the industry.These factors have caused significant damage to the production and business activities of beverage enterprises. The consumption market has contracted by 20-30 per cent, and the overall revenue of the beverage industry has dropped by as much as 16 per cent compared to 2019.Moreover, domestic beer businesses have expressed concerns about the proposed amendment to the Law on Special Consumption Tax by the Ministry of Finance. The proposed changes, including alterations to the tax calculation method and adjustment of the special consumption tax rate for alcohol and beer, are expected to create additional difficulties for businesses.Hà Nội Alcohol and Beverage Joint Stock Company (Halico), the owner of the Hà Nội vodka brand, has been grappling with consecutive losses for nearly nine years. In the fourth quarter of 2023, Halico's financial report indicated a slight decrease of 6.5 per cent in net revenue compared to the same period in the previous year, amounting to over VNĐ32 billion. However, the company still reported an after-tax loss of VNĐ4.2 billion, extending its loss streak to 27 consecutive quarters since the second quarter of 2017.Throughout 2023, the owner of the Hà Nội Vodka brand recorded a net revenue of over VNĐ100 billion, marking a 10 per cent decline compared to the same period in 2022. However, Halico's losses during this period amounted to just over VNĐ10 billion, a decrease from over VNĐ12.4 billion recorded in the same period of 2023.The decrease in losses primarily resulted from a nearly VNĐ10 billion reduction in the cost of goods sold in fiscal year 2023 compared to the previous year, totalling VNĐ72.6 billion. Additionally, the company recorded a profit of nearly VNĐ232 million during the same period, in contrast to a loss of VNĐ748 million reported the previous year.Previously, the financial report of Saigon Beer - Alcohol - Beverage Corporation (Sabeco or SAB) for the third quarter of 2023 also displayed a less favourable financial performance. The company attained net revenue of over VNĐ7.4 trillion during this period, indicating a decline of over 14 per cent compared to the same period. Sabeco's revenue from financial activities increased by 31.3 per cent to over VNĐ373 billion, mainly due to higher interest income from bank deposits.In the first nine months of the year, Sabeco's net revenue reached VNĐ21.9 trillion, down 12 per cent compared to the same period in the previous year, and the profit after tax amounted to VNĐ3.28 trillion, down 25 per cent over the same period.The Ministry of Industry and Trade's report on industrial production and commercial activities stated that domestic beer production in the first nine months of 2023 increased significantly, reaching an estimated 369.2 million litres, a 6.6 per cent increase compared to the same period in the previous year. The total beer output of all types during this period reached 3,405 million litres, a slight increase of 0.2 per cent over the same period in 2022. (ICE HO CHI MINH CITY)

Fonte notizia: Vietnam News