Vietnam. Beer production dynamics in May slowed down.

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The published report on the industry and trade in Vietnam discusses moderating growth rate of beer production during in the first five months of 2016.

From January till May 2016, according to the official data, Vietnamese brewers produced 1323.7 mln liter of beer which is by 5.7% more than the previous year (1252.8 mln liters of beer in 2015). The beer production dynamics in 2016 has slowed against 2015 (5.7% and 7.1% correspondently).

We should note that there is no data for January and February. Yet these are the months when one could expect rapid growth in order to reach the 5.7% growth rate, if we rely on cumulative data.

In May and April, the growth rates decreased substantially. Several factors could have affected the situation: the increased tax burden on brewers starting from January 2016, that had to be overlaid on the consumers via higher retail prices, and consumers’ refocusing on premium class beer.