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BUSINESS REPORT

January and February this year compared to IMPACT OF COVID-19 ON F&B PRODUCTION
December. In particular, the CPI for beer and
spirits in February was 1.26 per cent. The main 50.0%
reason for this increase, according to MPI, was 50.0%
the Lunar New Year (Tet), when Vietnamese 40.0%
households bought more FMCGs to prepare 35.0% 33.3%
for the holiday and dined out more often. 28.6%
The SSI Research report emphasized that
the recovery in consumption will continue, 15.0% 14.3% 16.7%
but demand will only return to pre-Covid-19 10.0% 7.1%
levels by 2022, not this year. Vietnam has
controlled its outbreaks very well, but more 0.0%
time is needed to fully recover, the report F&B sector Food Beverage
stated. Business at restaurants, cafés, shopping
malls, amusement parks, and museums is Serverely damaged Considerably damaged Insigni!cantly damaged Not damaged
still slow, down 10 per cent compared to the
baseline, according to a report Google released Sources: Vietnam Report, 2020
in December. The absence of international
visitors has also contributed to the decline in
beer consumption. And the impact of Decree ers could exploit. ciency. “Foreign-invested brewers in Vietnam
No. 100 has caused Vietnamese consumers With the market becoming increasingly are all world leaders with many years of expe-
to increasingly adjust their drinking habits, competitive between domestic and foreign rience and good service quality and manage-
especially those in major cities. businesses, Mr. Viet told local media that ment, while domestic brewers were previously
One bright spot is SSI Research estimating competition plays a very important role in ‘limited’ in competing by the subsidy mecha-
that consumers drank about 4.4 billion liters boosting production and forces producers to nism,” he said. “Under the market mechanism,
of beer last year, which while down against be constantly active, regularly improve their companies with good products will see sales
2019’s 4.6 billion liters was still a positive techniques, apply scientific and technological increase. Both domestic and foreign-invested
result. Experts said this confirms a level of advances, and improve skills and management brewers need to make every effort to maintain
potential in Vietnam’s beer market that brew- to raise productivity, quality, and business effi- their position in the market.” %

APRIL 2021 | VIETNAM ECONOMIC TIMES | 33