Previously, Heineken Vietnam Company sent a document to the People's Committee of Quang Nam province and the Management Board of Economic Zones and Industrial Parks of the province reporting on the temporary suspension of operations of Heineken Vietnam Brewery, Quang Nam Branch.
According to the report, since the COVID-19 pandemic, the beer industry has faced many challenges due to slow economic growth leading to a decline in consumer confidence and demand. In addition, the implementation of Decree 100 on controlling alcohol concentration when participating in traffic has also led to changes in behavior and the formation of new consumer habits.
As a result, the Vietnamese beer market witnessed a double-digit decline in 2023 and continued to decline in the first half of this year.
To adapt to the current situation, the company needs to optimize its production and business activities. Therefore, the company needs to streamline its operations to continue investing and developing in the Vietnamese market.
According to Heineken Vietnam, from June 12, 2024, the company will temporarily suspend operations of the Heineken Quang Nam brewery in Dien Nam - Dien Ngoc Industrial Park (Dien Ban town).
Regarding the factory's staff, Heineken said that they will be assigned jobs at other Heineken Vietnam factories if possible. In cases where other jobs cannot be assigned, the company will resolve the policy with a better unemployment support package than prescribed by law.
It is known that Heineken Vietnam Brewery Company Limited is a joint venture between Heineken and Saigon Trading Group. From the first factory in Ho Chi Minh City (1991), Heineken Vietnam now has 6 factories with 3,000 employees across the country.
In Quang Nam, Heineken Quang Nam Brewery started operating in 2007, this is the smallest factory in scale among the company's 6 factories in Vietnam.
Before the COVID-19 pandemic, Heineken Quang Nam Brewery contributed an average of VND1,000-1,200 billion to the provincial budget each year. However, in recent years, it has continuously decreased, and in the first 3 months of 2024 alone, the contribution from Heineken Brewery to the local budget reached about VND20 billion.
Currently, the Office of the People's Committee of Quang Nam province has forwarded the above document of Heineken Vietnam Brewery Company Limited to relevant agencies and units for monitoring and guidance in handling related documents and procedures according to assigned functions and tasks.
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