Heineken temporarily suspends brewery in Quang Nam, province loses nearly 500 billion in revenue

Heineken temporarily suspends brewery in Quang Nam , province loses nearly 500 billion in revenue

Heineken Brewery in Quang Nam officially suspended operations from the end of June 2024 due to continuous decline in sales in recent times.

Heineken Brewery in Quang Nam.

This is one of Heineken's largest breweries in Vietnam, contributing significantly to the budget of Quang Nam province.

The main reason for this decision is the impact of the COVID-19 pandemic and changes in consumer behavior. Since the pandemic, economic growth has slowed down, consumer confidence and demand have decreased.

As a result, the Vietnamese beer market witnessed a double-digit decline in 2023 and has continued to decline by single digits to date. Previously, Heineken Quang Nam Brewery contributed VND1,000 - 1,200 billion per year to the local budget. However, this figure has continuously decreased in recent years, down to only about VND20 billion in the first 3 months of 2024.

To adapt to the current situation and continue to develop, Heineken has decided to optimize production and business activities by streamlining operations and temporarily suspending the factory in Quang Nam. It is forecasted that the suspension of the factory will cause Quang Nam province to lose nearly VND500 billion in revenue each year.

Regarding the rights of workers, Heineken said it will arrange jobs for staff at other factories. For those who cannot be arranged, the company will resolve the policy in the spirit of care, respect and apply a better unemployment support package than current regulations.

Source: https://baodautu.vn/heineken-tam-dung-nha-may-bia-tai-quang-nam-tinh-mat-nguon-thu-gan-500-ty-d219347.html