Anti-drunk driving campaign slashes brewers’ profits

By Dat Nguyen   January 30, 2024 | 01:38 am PT
Anti-drunk driving campaign slashes brewers’ profits
Local residents toast with beer as they gather for karaoke in Ho Chi Minh City on Jan. 11, 2024. Photo by AP/Jae C. Hong
Vietnamese brewers saw their profits dropping double-digit last year as authorities tightened control on drunk driving.

Hanoi Beer brewer Habeco saw post-tax profit plunging 30% last year to VND355 billion (US$14.5 million), the lowest non-pandemic year since 2008.

Its revenue dropped 8% to VND7.76 trillion as authorities tightened control on drunk driving in the last months of the year, while economic challenges brought down consumption even though competition in the beer industry remained high.

Another brewer, Hanoi – Hai Duong, saw post-tax profit dropping 43% to VND6 billion, largely due to a loss in the fourth quarter.

Saigon – Hanoi brewer posted a profit decline of 25% to VND43.3 billion.

Hanoi – Thanh Hoa brewer recorded a production decline of 2.9 million liters year-on-year in the fourth quarter.

Its profit plummeted by half to VND5 billion.

The Vietnam Association of Beer, Wine and Beverage has said earlier that Vietnam’s tightened drunk-driving regulations have caused severe damage on brewers’ sales.

The country in 2020 introduced a new law on drunk driving with stronger fines on drivers who have any amount of alcohol in their system.

In the last two months of 2023, HCMC launched its largest anti-drunk campaign ever by dispatching new traffic police teams with significantly more officers than normal to streets known for high concentrations of bars, clubs and restaurants.

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