Vietnam: Heineken’s operations significantly affected by Covid-19

Alexander Koch, Heineken Vietnam's Managing Director, admitted that the Covid-19 pandemic has significantly affected the company's operations as well as its contribution to the state budget, The Leader reported on March 15.

Since 1991, Heineken Vietnam has been operating continuously in the Vietnam market and making significant contributions to the state budget (equivalent to nearly one per cent of GDP) and creating jobs both directly and indirectly for 212,000 employees.

However, the Covid-19 pandemic has significantly affected the company's operations as well as its contribution to the state budget, according to Alexander Koch, Heineken Vietnam Managing Director in a meeting with Minister of Industry and Trade Nguyen Hong Dien.

In 2020, coupled with the natural disasters in central Vietnam, the company’s GDP contribution in Vietnam decreased slightly from $876 million in the previous year to $744.6 million, with 0.87 per cent GDP contributed and 183,000 jobs supported in the whole value chain.

The rising input cost of materials puts pressure on the company to optimize its operating costs and find ways to operate sustainably.

“Despite testing circumstances, we built on our ability to adapt and stay close to our customers and consumers, while keeping our eyes on investing for the future,” says Heineken Vietnam in its sustainability report 2020.

Amidst Covid-19, the company introduced Bia Viet, a new brand created exclusively for Vietnam. Last year, it also launched Heineken 0.0 with no alcohol to support the Vietnamese Government’s effort to address drink-driving and Decree 100.

Koch affirmed that despite those challenges, the brand would continue to maintain its attachment to the Vietnamese market. It is expected that this September the company will inaugurate a new brewery in Ba Ria - Vung Tau.

However, the company expects that Vietnam has a suitable roadmap in implementing excise tax for the period 2022 - 2023 as well as considers the implementation of excise tax on alcoholic beverages based on pure alcohol.

The company also wants to increase the rate of renewable energy usage from 52 per cent to 100 per cent by 2025 and to participate in the implementation of the direct power purchase mechanism.

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