# Vietnam’s alcoholic beverages forecast shows long-term growth resilience

- Link: https://www.thailand-business-news.com/asean/vietnam/152791-vietnams-alcoholic-beverages-forecast-shows-long-term-growth-resilience
- Published: 2024-07-23T11:05:42+07:00
- Author: Bui Dung

**Key View: **In July 2024, Vietnam’s Ministry of Finance proposed to double excise
taxes on alcohol by 2030 to increase revenue and discourage excessive drinking.

These plans to double the alcohol excise tax will have a limited impact on the already
slowing alcoholic drinks market in Vietnam. Beer consumption dominates alcohol drink
patterns, but is already a mature market. Wine will retain its place as a premium
alcoholic drink, while spirits consumption will be driven by a growing sense of 
consumer nationalism.

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**Vietnam Alcoholic Drinks Outlook: Increased Excise Taxes Will Not Dampen Sector
Growth Over Long Term**

Vietnam’s alcoholic drinks sector is experiencing a remarkable transformation, projected
to sustain momentum despite recent increases in excise taxes. The government’s objective
to rein in alcohol consumption through higher taxes aims to improve public health.
However, this policy has not deterred the demand for alcoholic beverages, as the
rising middle class seeks premium and diverse offerings.

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Market dynamics indicate that while immediate sales may suffer, the long-term outlook
remains buoyant. Consumers are increasingly inclined to explore craft beers, imported
wines, and premium spirits, which suggests a shift towards quality rather than quantity.
Additionally, the growing trend of social drinking, especially among younger generations,
reinforces the resilience of the sector.

Furthermore, local producers and international brands are adapting to the new tax
landscape by innovating their product lines and enhancing marketing strategies. 
As Vietnam’s economy continues to expand, the alcoholic drinks sector is poised 
for sustainable growth, underpinned by evolving consumer preferences and a vibrant
market environment.

[Read More](https://www.fitchsolutions.com/bmi/food-drink/vietnam-alcoholic-drinks-outlook-increased-excise-taxes-will-not-dampen-sector-growth-over-long-term-16-07-2024)