Before the COVID-19 pandemic, Heineken Quang Nam Brewery contributed between 1,000 and 1,200 billion VND annually to the provincial budget. However, in the first three months of 2024, this amount plummeted to about 20 billion VND ($790,000), leading to the temporary suspension of the brewery's operations.

On June 24, the People's Committee of Quang Nam Province announced that Heineken Vietnam Brewery Company Limited (Heineken Vietnam) had issued a document stating the temporary suspension of operations at its Quang Nam factory.

Earlier, Heineken Vietnam had informed the People's Committee of Quang Nam Province and the Management Board of Quang Nam Economic Zones and Industrial Parks about the decision to temporarily halt operations at the Heineken Vietnam, Quang Nam Branch.

The report cited several challenges since the COVID-19 pandemic, including slow economic growth, declining consumer confidence, and reduced demand. Additionally, the implementation of Decree 100, which controls alcohol consumption when driving, has led to significant changes in consumer behavior and the formation of new habits.

As a result, the Vietnamese beer market experienced a double-digit decline in 2023, continuing into the first half of 2024.

To adapt, Heineken Vietnam has decided to streamline operations to continue investing in the Vietnamese market.

From June 12, 2024, the company will temporarily suspend operations at the Heineken Quang Nam Brewery in Dien Nam - Dien Ngoc Industrial Park, Dien Ban town.

Regarding the factory's staff, Heineken Vietnam has stated that employees will be reassigned to other Heineken factories where possible. For those who cannot be reassigned, the company will provide an unemployment support package better than what is legally required.

Heineken Vietnam is a joint venture between Heineken and Saigon Trading Group. Since establishing its first factory in Ho Chi Minh City in 1991, Heineken Vietnam now operates six factories with 3,000 employees nationwide.

The Heineken Quang Nam Brewery, which began operations in 2007, is the smallest of the company's six factories in Vietnam.

Before the pandemic, the brewery consistently contributed significant amounts to the provincial budget. However, contributions have drastically decreased in recent years, with only 20 billion VND contributed in the first quarter of 2024.

The Office of the Quang Nam Provincial People's Committee has forwarded Heineken Vietnam's document to relevant agencies for monitoring and guidance on handling related procedures according to their assigned functions and tasks.

Nguyen Nam