Check out the list of consumers' Tet shopping cuts

Beer and wine top the list.

"Traffic police are checking blood alcohol levels right down to the village level. Who would dare drink beer while visiting relatives and friends during Tet these days?" joked Mr. Tran Q. Khoi, the head of a village in Thua Thien- Hue , when asked if he had bought beer to offer guests during the three days of Tet. "Usually, every year, my family would buy a case of soft drinks for the kids to enjoy with their friends, and a case of beer to offer to neighbors who come to visit and offer prayers to our ancestors. This year, we've cut it all out, partly because our family income has decreased, and seeing that our neighbors are also struggling, we've decided to restrain ourselves. Beer and alcohol aren't essential items anyway, so cutting them out isn't a big deal," Mr. Khoi explained.

People reduce their purchases of non-essential items during the Lunar New Year season.

Beer sales for distributors decreased by about 35-40% last year. Many restaurants closed down, and individual customers also declined, leading to lower sales. Usually, beer prices increase in the months leading up to Tet (Lunar New Year). This year, even with price reductions and promotions, sales remain sparse.

Ms. Ho Thi Loan (owner of a beer distribution agency on Lac Long Quan Street, Tan Binh District, Ho Chi Minh City)

Cutting beer and liquor from the Tet shopping list, like Mr. Khoi's family, is not unique. Many people, when asked about buying alcohol to entertain guests during the three days of Tet, shook their heads and said they had no plans yet. Mr. Truong Quang Ka (residing in Thu Duc City, Ho Chi Minh City) said that every year, as Tet approached, he would stock up on several cases of beer to enjoy with friends and relatives. This year, beer and liquor have been removed from the list of priority items to buy. Mr. Ka said: "Most of this Tet holiday will be spent with family, perhaps even traveling to the Central Highlands. If that's the case, then there's even less need for Tet shopping, and definitely no need for beer or liquor."

With fewer customers buying beer and wine, sellers have stopped importing them. Ms. Le Pha, Director of NQ Trading and Service Co., Ltd. (Bien Hoa, Dong Nai ), said that every year her company imported wine to make gift boxes for sale during Tet (Lunar New Year). Before the Covid-19 pandemic, they sold an average of 4,000-5,000 boxes annually, mainly to businesses as Tet gifts. However, during the two years of the pandemic, production decreased by 50%, and by the 2024 Lunar New Year season, the company officially stopped selling wine as gifts. "From October to November 2023, the company offered the products, but 100% of customers refused, so we decided not to import them anymore," Ms. Le Pha said.

Ms. Ho Thi Loan, owner of a beer distributor on Lac Long Quan Street (Tan Binh District, Ho Chi Minh City), admitted: "Up until now, we've hardly seen any customers asking to buy beer for Tet (Lunar New Year). This is the product with the biggest drop in revenue for our distributor among all consumer goods. Our beer sales last year decreased by about 35-40%. My customers are mainly restaurants and households. Last year, many restaurants closed, and individual customers also decreased, so sales dropped. Usually, in previous years, beer prices increased in the months leading up to Tet. This year, we even reduced prices and offered promotions, but buyers are still scarce," Ms. Loan sighed, adding that the distributor is offering direct discounts to attract customers. For example, Budweiser beer, previously priced at 447,000 VND/case of 24 cans, is now being sold for 430,000 VND/case for Tet 2024, with free delivery. Heineken also reduced its price from 420,000 VND to 388,000 VND per case; Carlsberg offered a free box of cookies for purchases of 300,000 VND per case… This is a rare occurrence in the market, as beer prices usually increased, and supplies were even scarce during Tet (Lunar New Year).

The Vietnamese beer and spirits industry experienced a challenging 2023, witnessing an unprecedented decline. According to a Vietdata report, in 2022 Vietnam became the leading beer consumer in ASEAN and the third largest in Asia, consuming approximately 3.8 million liters per year. However, 2023 saw a sharp drop in consumption. Two well-known beer brands, Sabibeco and AB Inbev, reported losses of 17 billion VND and 170 billion VND respectively. Even with the Lunar New Year approaching, the usual bustling sales, shortages, and price surges seen in previous years are absent.

According to the Vietnam Beer and Beverage Association, Vietnam's beverage industry is currently facing significant difficulties. Beer sales have decreased by 10-20%, while raw material prices have increased by up to 50%. The main reason is the struggling global economy , leading to reduced purchasing power. Furthermore, the government is tightening regulations on blood alcohol levels for drivers, further contributing to the decline in beer and alcohol consumption.

Reduce purchases of new items.

Buying new clothes for Tet (Lunar New Year) is a tradition maintained by many families, symbolizing the discarding of the old and the welcoming of the new. However, this year, many people have decided to cut back. Ms. Mai Nguyen (residing in Nha Be District, Ho Chi Minh City), who works in the media industry, said she will not buy new clothes to show off during Tet because her salary and bonuses have been significantly reduced, while many fixed expenses cannot be cut. "Going back to my hometown to be with my family for Tet, mostly staying at home, doesn't require buying new clothes, especially since money isn't abundant. Moreover, I've already decided to spend more frugally to save for future plans," Ms. Nguyen said.

A fashion stall with few customers on the weekend.

Ms. Le Thi Hoa (residing in District 1, Ho Chi Minh City), an employee of an import-export company, said that every year around this time, her office, with more than 10 young female employees, is bustling with shopping. "Buying beautiful clothes, planning to take photos together… it's almost become a tradition for us. Every year we have several spring photo shoots from the beginning of the twelfth lunar month. However, so far, no one has made any moves. Income has dropped sharply, and we don't know if we'll receive a bonus yet. My family of four is still considering whether to go back to our hometown to visit our grandparents for Tet because airfare is too high. The airfare to Hai Phong alone for a family of four is over 45 million VND. Economy class tickets sold out more than a month and a half ago, while my husband and I only have our Tet holiday plans from the beginning of the month. If we only decide to book tickets after we have our holiday plans, the price will have already jumped to 5.7 million VND per ticket. Therefore, I haven't planned to buy anything yet. I'll just take things as they come," Ms. Hoa said.

Our informal survey shows that spending on new clothes for Tet (Lunar New Year) has been drastically reduced among adults. While some families still buy Tet clothes for their children, they choose more affordable items and limit their purchases, not splurging as before.

It's not just those with reduced incomes who are cutting back on shopping; even those who are more affluent are still inclined to eliminate non-essential items, with alcohol and clothing being top priorities. Truong Quang Ka says he still buys clothes gradually throughout the year when needed. However, the mindset of specifically buying things for Tet (Lunar New Year) is gone. "No alcohol, no new clothes for Tet, just time to rest and enjoy the spring festivities," Ka concludes.

Trade expert Vu Vinh Phu commented that while salaries and bonuses for employees in many units and businesses are now clearly defined, the demand for clothing and footwear has not increased. Consumers still prioritize essential items, and the general policy remains to save money.

The Saigon Port Customs Branch, Area 4, is one of the major ports specializing in receiving imported alcoholic beverages into Ho Chi Minh City. Mr. Pham Quang Nam, Deputy Head of the Saigon Port Customs Branch, Area 4, stated that the import value of this item in the last quarter of 2023 remained relatively stable, further exacerbating the decline seen in the previous three quarters. Compared to 2022, the import value of all types of alcoholic beverages through ports under the branch's management decreased by 56% in 2023.

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