The People’s Committee of Ba Ria-Vung Tau province has issued Decision No. 1693/QD-UBND, approving the detailed construction planning of a beer factory with an annual capacity of 1.6 billion liters in My Xuan A Industrial Park, My Xuan ward, Phu My town.
The planned area is located in My Xuan A Industrial Park, Phu My town, with a total planning area of approximately 393,551.4 square meters. The project includes main functions such as administrative and service areas, factory and warehouse areas, technical infrastructure, greenery, transportation, and parking lots.
According to the adjusted investment certificate, the total investment capital for this project is nearly VND 12,600 billion (equivalent to USD 540.6 million), fully contributed by the investor in cash. As of 2022, the company has contributed VND 7,033 billion, and the remaining will be completed by 2024 – 2026.
In fact, Ba Ria-Vung Tau is currently home to the largest brewery in Southeast Asia of the group. The Vung Tau brewery has been in operation since 2017 and has increased its capacity by more than 36 times in the five years since.
Quang Nam Beer Factory. Photo: Heineken.
Earlier, on June 17, Heineken Vietnam Brewery Co., Ltd. sent a document to the People’s Committee of Quang Nam province regarding the temporary suspension of operations of Heineken Vietnam Brewery – Quang Nam Branch.
The brewery in Quang Nam is the smallest of Heineken’s six breweries in terms of scale, with a capacity of 110 million liters per year as of 2022. The brewery has been operating in Dien Nam – Dien Ngoc Industrial Park (Dien Ban) since 2007 on an area of 7.6 hectares.
According to the Quang Nam provincial web portal, at its peak, the Heineken Vietnam Brewery – Quang Nam branch contributed an average of VND 1,000 – 1,200 billion to the provincial budget each year.
However, the Covid-19 pandemic and Decree 100 on handling violations of alcohol concentration levels while driving have impacted the operations of the brewery.
In the first three months of 2024, Heineken contributed only about VND 20 billion to the Quang Nam budget. It is forecasted that the temporary closure of the brewery will result in a loss of nearly VND 500 billion in annual revenue for the province.
Heineken Vietnam is a joint venture between Heineken and Saigon Trading Group (Satra). The first brewery was established in Ho Chi Minh City in 1991. Today, the company has six breweries and over 3,000 employees nationwide (including the Quang Nam brewery).
Heineken has invested more than 1 billion euros (over VND 27,300 billion) in Vietnam, creating nearly 250,000 jobs and contributing approximately 1.04% to the country’s GDP.
Recently, Heineken has provided feedback and recommendations on the draft Law on Special Consumption Tax amendments.
Heineken suggested that the current special consumption tax rates should be separated into specific tax rates corresponding to different alcohol levels in beer to ensure alignment with existing laws and regulations.
Heineken also proposed a roadmap for tax increases, suggesting that the tax rate for beer products be maintained at 65% for three years, with an increase of no more than 3-5% every three years thereafter.
