Heineken temporarily suspends factory in Quang Nam due to continuous decline in sales

Heineken Brewery in Quang Nam - Photo: VINH LOC

Speaking to Tuoi Tre Online , Mr. Nguyen Thanh Phuc - director of external affairs of Heineken Vietnam - said that the company has sent an official notice to Quang Nam province regarding the suspension of this activity.

"We confirm the temporary suspension of the Heineken brewery in Quang Nam, this is within the company's calculations," said Mr. Nguyen Thanh Phuc.

Heineken's factory in Quang Nam has been in operation since 2007, located in Dien Nam - Dien Ngoc Industrial Park (Dien Ban town). Although the smallest in scale among the 6 factories across the country, Heineken Quang Nam is still a major contributor to local revenue and has been recognized by Quang Nam province many times.

Before COVID-19, Heineken contributed an average of VND1,000 - 1,200 billion to the Quang Nam budget each year. However, in recent years, this number has continuously decreased.

In the first 3 months of 2024 alone, Heineken contributed about 20 billion VND to the local budget.

Nationwide, Heineken currently has about 3,000 full-time employees, contributing to the creation of 250,000 jobs in the value chain, contributing equivalent to 1.04% of the national GDP.

This is also one of the businesses that pay the most taxes for many years in a row.

However, since the COVID-19 pandemic, many sectors in the Vietnamese economy have faced difficulties due to slowing economic growth, leading to a decline in consumer confidence and demand.

"On the other hand, Heineken Vietnam also believes that the implementation of Decree 100 on controlling alcohol concentration when participating in traffic has also contributed to changing consumer behavior and new habits. As a result, the Vietnamese beer market has seen a continuous decline in sales.

"To optimize production and business activities, Heineken has decided to streamline operations and temporarily suspend the factory in Quang Nam" - Heineken Vietnam's announcement sent to Quang Nam province mentioned.

Regarding the settlement of benefits for workers working in Quang Nam, Heineken said that the staff will be assigned to work at other factories.

For those who cannot be accommodated, the company will resolve the policy in a spirit of care and respect, applying a better unemployment support package than current regulations.

Source: https://tuoitre.vn/heineken-tam-dung-nha-may-tai-quang-nam-do-doanh-so-sut-giam-lien-tuc-20240624155646099.htm