Heineken Vietnam and Quang Nam Provincial People’s Committee discuss the resumption of operations at the Heineken Quang Nam Brewery.
The People’s Committee of Quang Nam Province has issued a document regarding a meeting with Heineken Vietnam on the resumption of operations at the Heineken Quang Nam Brewery. The committee aims to discuss the restart of the brewery’s operations and address related matters.
Scheduled for May 2025
In its correspondence with Heineken Vietnam, the People’s Committee of Quang Nam Province expressed its intention to hold a meeting in May 2025 to discuss the resumption of operations at the Heineken Quang Nam Brewery, located in Dien Nam – Dien Ngoc Industrial Park.
The committee emphasized that the primary objectives of this meeting are to facilitate the restart of the brewery’s operations, optimize the utilization of existing machinery, equipment, and production lines, address employment concerns, and contribute to the socio-economic development of the province.
Heineken Vietnam temporarily halted operations at the Heineken Quang Nam Brewery in June 2024 due to various economic challenges and changes in consumer behavior post-COVID-19, coupled with the implementation of regulations on alcohol control, which resulted in a decline in Vietnam’s beer market.
According to Heineken Vietnam, the Heineken Quang Nam Brewery, the smallest of their six breweries in Vietnam, has been operational since 2007 in Dien Nam – Dien Ngoc Industrial Park, in Dien Ban town. To achieve economies of scale, the company needed to streamline its operations and focus on investments and development strategies that support their business continuity and value chain in the Vietnamese market.
Prior to the COVID-19 pandemic, the Heineken Quang Nam Brewery, with an annual capacity of 220 million liters, contributed VND 1,000-1,200 billion to the provincial budget annually. However, in recent years, there has been a continuous decline, and in the first quarter of 2024, the contribution from the Heineken Quang Nam Brewery to the local budget was approximately VND 20 billion.
Heineken’s Strategic Adjustments: Halting the Quang Nam Brewery and Expanding the Vung Tau Brewery
In conjunction with the temporary halt of operations at the Quang Nam Brewery, Heineken Vietnam is executing plans to expand its Vung Tau Brewery’s capacity to 1.6 billion liters per year, representing a 500 million liter increase. This expansion surpasses the entire capacity of the Quang Nam Brewery.
Heineken Vietnam’s Brewery in Ba Ria-Vung Tau Province. Source: Heineken Vietnam
Heineken Vietnam received an investment license for the expansion project of the Heineken Vung Tau Brewery in June 2023, with a total investment capital of VND 12,585 billion, equivalent to USD 540 million.
Prior to this expansion, the Vung Tau Brewery had a capacity of 110 million liters per year and commenced operations in late 2018. Subsequent expansions increased its capacity to 610 million liters per year by 2019 and further to 1.1 billion liters per year by 2022.
For the current expansion, Heineken Vietnam plans to complete the legal procedures by June-October 2024, followed by the construction of offices, factories, auxiliary systems, and rainwater and wastewater collection systems by November 2024-January 2025. The installation of production line equipment is scheduled for February-March 2025.
Subsequently, the project will undergo legal completion procedures and trial operation of the production lines in April-July 2025, aiming for commercial operation by October 2025.
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