Bloomberg: Vietnam’s beer industry sales dropped by at least 25% after Decree 100, shocking one of the fastest growing beer markets in the world.

The media reported that Vietnam’s beer sales could be reduced by at least 25% since the strict alcohol content regulation came into effect on January 1, 2020. Since then, authorities have sanctioned more than 6,200 alcohol violations. As a corollary, brewers had to cut prices to boost consumer demand during the approaching Chinese New Year.

Vietnam is a country that consumes a lot of beer according to consumers’ habits. However, the high rate of traffic accidents has led the government to tighten the problem of alcohol use when participating in traffic, thereby making many people involved in traffic unexpectedly, because they often did not take this issue seriously. Although there are clear rules.

Since 2004, beer consumption in Vietnam has quadrupled thanks to economic development as well as increasing incomes for people, thereby attracting many international brewers such as Heineken or Anheuser Busch InBev. play.

However, under the new rules, motorbike drivers can be fined up to 8 million (345 USD), double the previous fine, and can get a 2-year license, longer than 5 months. of the old law, if violating the regulations on alcohol content.

For drivers of cars, the fine can be up to 40 million and confiscation of driving licenses. The new law also requires alcohol advertisements to include a health warning, while stores that sell alcohol must post signs not for people under 18.

This time the Government of Vietnam is quite strict when only in the first half of January 2020, the Ministry of Public Security has fined a total of VND 21 billion with 6,279 cases of alcohol content violations when participating in driving a vehicle.

The reason for the tightening of this regulation is also easy to understand because in 2019, many tragic accidents happened with alcohol. The pitiful images of the accidents have spread on social networks and created frustration in the community, thereby urging the Government to take strong action.

According to Vu Tu Thanh, representative of the US-ASEAN Business Council in Vietnam, advocacy from the Ministry of Health as well as Vietnam’s first National Assembly Chairwoman Nguyen Thi Kim Ngan helped the new law. accepted.

The Ministry of Health said that increasing alcohol consumption is one of the key causes affecting public health. Sharing the same view, the World Health Organization (WHO) says that every year, about 79,000 alcohol-related deaths.

According to the Program Director of HealthBridge Foundation Vietnam, Ms. Le Thi Thu, more than 80% of the people who consume alcohol in Vietnam are men and they lead to many social consequences, including accidents. traffic, domestic violence, or social unrest. The WHO said the harmful effects of alcohol abuse could be equivalent to 1.3-3.3% of GDP deduction.

Meanwhile, Euromonitor International’s report shows that the growth of middle class and young people has led to an increase of 284% in beer consumption in Vietnam between 2004-2018. This is the main reason for big companies like Thai Beverage to buy back US $ 4.8 billion in shares of Saigon Brewery 2 years ago.

Vietnam is currently the third largest beer consumer in the Asia Pacific region in terms of output, although the total population is only 15th in Asia with 96.2 million people. The average household beer consumption in Vietnam has increased by 30% between 2013-2018, reaching 43 liters / household.

In contrast, the average household beer consumption in the US during the same period decreased by 4%.

Of course, the new regulation is making the beer industry in Vietnam heavily affected and also affects festivals, sports or festivals, because the habit of partying and drinking has existed for many years.

“People have the habit of drinking regularly, whenever they want,” said representative Vu Tu Thanh.

Many pubs now offer discounted taxi or even taxi drivers, even giving them a free ride home to improve the situation. The new rule also spurred the consumption of alcohol pills.

According to the representative of Vu Tu Thanh, if this regulation is maintained, they will enhance the image of Vietnam in the eyes of international friends as well as in the Vietnamese community itself.