The spirit and alcohol market in Vietnam: Overview of key-numbers
The development of society and economic reform has brought a sea change in an established framework for identity, behavior, and cultural practices. The market for Vietnam Alcohol has traditionally segmented by quality or brand. Since 2010, there is a steady increase in alcohol import in Vietnam, as Vietnam consumer market continues to grow, with more and more foreign products that pouring on the market.
Origins of wine available in Vietnam are various, with different choices from France, South Africa, Italy, USA, …etc. Most of the European wine account for 45% market share, followed by Asia brand of 25%.
ALCOHOL CONSUMPTION IN VIETNAM MARKET
According to the Ha Noi-based Health Strategy and Policy Institute, Vietnam is one of the first ranks in Southeast Asia in terms of beer and wine consumption growth although its GDP just stands at number eight in the region. In 2020, the consumption of alcohol beverage and beer, in particular, is projected to reach 4.84 and 4.97 billion liters, respectively.
Tuoi Tre New has culled opinion from the expat living and working in Ho Chi Minh city about drinking habits in Vietnam. The survey shows that each Vietnamese person drank an average of 3.8 liters of wine a year in 2005, and 6.6 liters in 2010. Meanwhile, the average consumption of alcohol in the world has not increased in the last ten years.
Vietnamese consumers nowadays are willing to pay more money to try higher quality products as they have seen vast improvements in their standard of living and consumer spending power, along with a strong obsession with the foreign products, believing them to be one of the higher quality. This creates a great opportunity for foreign import products.
SELLING ALCOHOL IN VIETNAM
It is a sticky business for selling alcohol in Vietnam for various reasons. The staff are poorly trained, for example, with knowledge of their product as insufficient as the customer’s, leading to an uninformed, and possibly unsatisfactory, purchase.
In addition, the outward appearance of many wine shops is uninviting, the majority of them being homogeneous and lacking any attractive characteristics that might catch a passing eye. Successful alcohol shops in Vietnam offer a wider range of wines, beers, and have an attractive look.
REGULATION ON ALCOHOL IMPORT IN VIETNAM
Import in Vietnam are regulated by the Customs Law, and other notices and decrees issued by the Vietnamese Government.
Import Alcohol must be inspected before they can be cleared at the custom, in compliance with the National Technical Regulation on Food Safety for Alcohol Beverage.
The attributes during the inspection consist of alcohol quality, specifications, quantity, volume.
However, Vietnam now has its restrictions on importing alcohol after we join the World Trade Organizations (WTO) and ASEAN to promote and improve long term relations with its stable trading partners. For example, Vietnam has issued less strict tariffs import with Australia wine or some European countries.
In summary, Vietnam is an opening and booming market for not only local alcohol suppliers but also for foreign suppliers. Vietnam’s alcohol beverage market will continue to be a priority for international suppliers, promising to bring fierce but fair competition in this filed.
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