Vietnam: New Laws To Put Brakes On Alcohol Sector

摘要

1. Alcohol consumption and revenue in Vietnam, especially beer, is projected to increase at a slower rate of 7.8% in 2020 as a resultof strict regulations that came into effect on 1 Jan 2020.2. At Fitch Solutions, we still believe the sector to be strong fundamentally with moderate growth rates in the medium-term(2020-2024), given (1) Vietnam’s consumer spending is still set to increase on the back of rising incomes; (2) there are alreadyshort-term measures by businesses to mitigate the effects of the law; (3) consumers may develop more responsible consumption habits around these regulations while continuing to consume more alcohol.