Vietnam, known for its vibrant beer culture, offers a unique environment for brewing beer. With its rapidly expanding market and growing appreciation for craft and premium brews, the country has become a prime location for both large-scale breweries and small craft beer enthusiasts to thrive.
Understanding the nuances of brewing beer in Vietnam, however, including the country’s unique business environment and business practices can be key to ensuring a high-quality product is produced in a timely and affordable way.
In this guide, we’ll explore the key steps involved in brewing beer in Vietnam, from selecting local ingredients to setting up a brewery, as well as navigating the legal landscape and catering to the tastes of Vietnamese beer drinkers. Whether you’re a homebrewer or an aspiring entrepreneur, this introduction will provide the foundation for creating great beer in one of Southeast Asia’s most exciting beer markets.
Establishment procedures for breweries in Vietnam
Breweries in Vietnam with foreign ownership are generally established as a limited liability company either as a wholly owned foreign enterprise or a joint venture with a Vietnamese partner. This article provides a broad overview of establishment procedures with a more thorough, detailed technical guide available here: How to Form a Company in Vietnam: Technical Guide 2024
Wholly foreign-owned businesses in Vietnam
A wholly foreign-owned business in Vietnam allows a foreign investor complete control over a company’s operations. It is, however, generally more costly and time-consuming.
Specifically, before they can apply to register a business, foreign entrepreneurs who want to set up a wholly foreign-owned company will need to first apply for an Investment Registration Certificate (IRC) which they do not have to do with a local partner.
An IRC is required to ensure that foreign firms are not engaging in business in restricted or forbidden business lines. The conditions for approving an IRC are outlined in the Law on Investment which also states that IRCs should be issued in between 5 to 15 days. In reality, however, it is usually around 30 to 45 days.
Joint venture businesses in Vietnam
With a local partner foreign business persons do not need to file for an Investment Registration Certificate, but rather the Vietnamese partner establishes the company and the foreign investor buys a share. In this sense, working with a local business partner can considerably reduce setup costs and application processing times.
Joint ventures, however, can be risky. A mismatch in work ethics and management styles can cause conflict in the workplace, particularly in cross-cultural settings. For example, whereas in Vietnam it is common to financially penalise staff for arriving late or for using their phone during work hours, in Western countries, this would be unacceptable. Understanding these little nuances of cross-cultural communication, in a joint venture environment, may be crucial to a business’s success.
Regulations for beer makers in Vietnam
There are three key regulations individuals looking to brew beer in Vietnam should be aware of.
Food safety certificates in Vietnam
In order to brew beer in Vietnam, business owners need to get themselves a food safety certificate. This is outlined in the Law on Food Safety.
To apply for a food safety certificate, an application must be completed and submitted to the Ministry of Industry and Trade. The application should include:
- A photocopy of the firm’s business registration certificate.
- A written request from the business owner for food safety certification.
- Health certificates of any staff coming into contact with food in the establishment.
- Details of the equipment, facilities, and appliances and assurance that they comply with food safety requirements.
- Staff food safety training certificates.
Brewers in Vietnam that make beer without a food safety certificate may be hit with a fine of up to VND 40 million (US$1,662).
Self-declarations of beer quality
Self-declaration of product quality in Vietnam is a regulatory process that allows businesses to declare that their products comply with relevant food safety and quality standards without needing prior approval from the authorities. This procedure is governed by Decree 15/2018/ND-CP, which provides detailed guidelines on the food safety law in Vietnam. Self-declaration is an important mechanism for speeding up the product registration process, particularly for non-high-risk food products.
Liquor licences in Vietnam
Brewers in Vietnam that intend to sell alcohol in Vietnam will need to apply for a liquor licence.
The sale and production of alcohol in Vietnam are generally covered by the Alcohol Law (with some amendments in Decree 17/2020/ND-CP. New alcohol vendors need to apply to the Economic Department or the Economic and Infrastructure Department of the district People’s Committee.
The application for a liquor licence should include:
- An application form as outlined in the decree.
- A copy of the business registration certificate.
- A copy of the lease contract and documentary proof the business has the legal right to use the premises.
- A copy of a contract or agreement with an alcohol producer, distributor, or wholesaler.
An application for a liquor licence in Vietnam attracts an appraisal fee of VND 1,200,000 (US$49). There is also an issuing fee of VND 200,000 (US$8). This is outlined in Circular 168/2016/TT-BTC.
That said, for a more complete guide to selling beer in Vietnam see: How to Open a Bar in Vietnam 2024: Ultimate Guide.
Beer ingredients availability in Vietnam
Malt in Vietnam
Malt is another essential component of beer, providing both flavour and colour. However, Vietnam does not produce significant amounts of barley or malt locally. As a result, most malt is imported from countries like Australia, France, Germany, and Belgium. Brewers in Vietnam can access both base malts, such as pale malt, and specialty malts, including caramel and roasted varieties, through suppliers based in major cities like Ho Chi Minh City and Hanoi. Large-scale breweries might purchase in bulk, while craft brewers often buy smaller quantities.
Hops in Vietnam
Hops, crucial for adding bitterness and aroma to beer, are also largely imported in Vietnam. The country does not grow hops on a commercial scale, so breweries rely on imports from the U.S., Europe, and Australia. This can make hops relatively expensive and harder to find outside major cities. Craft brewers in Vietnam often work with specialty suppliers or import directly to access specific hop varieties, such as Cascade, Citra, or Saaz, to achieve distinct flavours in their beers.
Yeast in Vietnam
Yeast, responsible for fermentation, is primarily imported into Vietnam. Breweries can find both dry and liquid yeast options, with different strains available to suit various beer styles, including lagers and ales. Local suppliers offer a range of yeast strains from well-known global brands like Fermentis and White Labs. Some innovative brewers may also experiment with wild or locally cultivated yeast strains to create unique flavour profiles.
Water
Whereas water is plentiful In Vietnam, the quality of water can vary by region, with urban areas typically offering more reliable sources. Breweries, especially those engaged in craft brewing, often need to treat and filter local water to ensure it meets the necessary brewing standards. This might involve removing impurities and adjusting mineral content to achieve the desired flavour and quality.
Intellectual property protection in Vietnam for beer brands
Intellectual property protection can be an issue in Vietnam and it’s not just clothing and apparel. Fake brand name beers have been known to appear from time to time–back in August about 3,000 fake bottles of Heineken and Corona were confiscated in northern Vietnam’s Phu Yen province.
Notably, Vietnam is a signatory to most of the world’s biggest intellectual property agreements, including the Berne Convention on copyright, the Patent Cooperation Treaty, the Madrid Protocol, and the Paris Convention. However, numerous problems exist in enforcing these agreements.
There have also been extensive efforts to crack down on the sale of fakes, however, it very much seems like when one counterfeit goods outfit is dismantled another quickly pops up to take its place. As a result, Vietnam basically has a permanent position on the US Trade Representative’s Special 301 Report watchlist which monitors intellectual property protections around the world.
All of that said, a lot of this is part and parcel with doing business in an emerging economy.
Foreign beer brands manufacturing in Vietnam
Heineken
Heineken is a major player in the Vietnamese beer market, with operations spanning several locations across the country. The company established its first brewery in Vietnam in 1991 and has since expanded its presence with multiple production facilities. Heineken Vietnam produces a variety of products, including Heineken Lager, Tiger Beer (which is also part of Heineken’s portfolio), and other international and local brands. Heineken’s investment in local breweries has significantly contributed to the development of the local beer industry by introducing advanced brewing technologies and rigorous quality control standards.
Box 1: The 2024 Heineken factory closure
The closure of the Heineken plant in Quang Nam, in central Vietnam, announced in 2024 was big news with the provincial government set to lose out on VND 500 billion–or about US$19.8 million–in tax revenue each year. That is not to mention that a number of jobs will also likely be lost.
This is off the back of slow growth in beer sales post-pandemic and in line with falling revenues among a number of Vietnam’s major beer brewers. This has been blamed on broader economic challenges and harsher drink driving penalties.
See also: What’s Happened to Vietnam’s Beer Market? Unpacked 2024
Carlsberg
Carlsberg Group, another prominent foreign brewer, operates in Vietnam through joint ventures with local partners. The company has established breweries in several key locations, including Hanoi and Ho Chi Minh City. Carlsberg’s local operations include the production of popular brands such as Carlsberg Lager and Tuborg. The presence of Carlsberg has helped to expand the premium beer segment in Vietnam, creating a positive impact on local employment and infrastructure development.
AB InBev (Anheuser-Busch InBev)
AB InBev, one of the world’s largest beer companies, has made significant inroads into the Vietnamese market by acquiring local breweries and brands. The company’s local facilities produce several of its international brands, including Budweiser and Corona. AB InBev’s investment has increased the availability of its global brands and has introduced advanced brewing practices and technologies to the Vietnamese market, influencing local brewing standards and contributing to the industry’s overall growth.
Asahi
Asahi Group Holdings, a leading Japanese beer producer, has established a notable presence in Vietnam with local breweries and production facilities. The company’s operations include the production of popular brands such as Asahi Super Dry. Asahi’s investment in local production supports its strategy of meeting the growing demand for premium and imported beers in Vietnam, aligning with the evolving preferences of Vietnamese beer consumers.
Kirin
Kirin Brewery Company, another major Japanese beer manufacturer, has entered the Vietnamese market through partnerships and joint ventures. The company operates local breweries and produces products like Kirin Ichiban. Kirin’s presence in Vietnam adds to the diversity of premium and international beer options available to consumers and plays a role in the overall growth of the Vietnamese beer market.
Moët Hennessy
Moët Hennessy, while primarily known for its luxury beverages, also engages in beer production in Vietnam through its subsidiary. The company operates local breweries and offers high-end beer options. Moët Hennessy’s involvement in the Vietnamese beer market caters to a niche segment of consumers seeking premium and exclusive beer experiences, further enriching the country’s diverse beer landscape.
Key beer brewing locations in Vietnam
Vietnam’s beer industry is concentrated in several key locations, each playing a significant role in the country’s brewing landscape. Here’s a look at the primary beer brewing hubs in Vietnam:
Ho Chi Minh City
Ho Chi Minh City, the largest city in Vietnam, is a major centre for beer production and consumption. The city is home to several prominent breweries, including Heineken Vietnam, which operates multiple facilities in the area. Other major players, such as Carlsberg and AB InBev, also have a strong presence here. Ho Chi Minh City’s bustling urban environment and growing middle class make it a critical market for both domestic and international beer brands. Additionally, the city’s vibrant craft beer scene features a range of local breweries and brewpubs that cater to diverse tastes.
Hanoi
Hanoi, the capital city of Vietnam, is another crucial brewing hub. Hanoi hosts several significant breweries, including Habeco (Hanoi Beer Alcohol Beverage Corporation), which is one of the largest local producers in the north. The city also sees substantial activity from international brewers like Heineken and Carlsberg. Hanoi’s rich cultural heritage and growing appetite for diverse beer styles contribute to its importance in the beer industry. Craft breweries in Hanoi also thrive, offering a variety of locally brewed and experimental beers.
Da Nang
Da Nang, located in central Vietnam, has emerged as an important brewing location due to its strategic position and rapid economic development. The city hosts production facilities for several domestic and international beer brands. Da Nang’s growing tourism industry and increasing local demand for diverse beer options have spurred investment in brewing operations. The city is also known for its burgeoning craft beer scene, with local breweries gaining popularity among residents and visitors.
Binh Duong
Binh Duong Province, situated just north of Ho Chi Minh City, is an industrial and economic hub with a growing beer production presence. The province is home to several large-scale breweries, including those operated by major international players such as Heineken and Carlsberg. Binh Duong’s proximity to Ho Chi Minh City and its favourable business environment make it an attractive location for beer manufacturing and distribution.
Long An
Long An Province, located to the southwest of Ho Chi Minh City, has seen an increase in brewing activities in recent years. The province is becoming an important site for both domestic and international beer producers, with several large breweries setting up operations in the area. Long An’s development as a brewing location reflects the broader expansion of the beer industry in southern Vietnam.
What’s next?
Vietnam, known for its vibrant beer culture, offers a unique environment for brewing beer. With its rapidly expanding market and growing appreciation for craft and premium brews, the country has become a prime location for both large-scale breweries and small craft beer enthusiasts to thrive.
Vietnam’s business environment, however, is dynamic and can change quickly. With this in mind, to keep abreast of what’s happening in Vietnam’s beer brewing industry, foreign beer brewers in Vietnam should make sure to subscribe to the-shiv.