Heineken Vietnam Brewery Limited Company (Vietnam)

The subject engages in manufacturing and distributing beers. The company has ambitiously expanded through M&A deals. For example, in 2007, the subject acquired Heineken Vietnam Brewery - Quang Nam Limited Company and continued to acquire Heineken Vietnam Brewery - Vung Tau Limited Company in 2016.In 2022, the subject signed a memorandum of understanding and continued to invest in expanding Vietnam's largest brewery - Vung Tau Brewery in 3 years (from 2023 to 2025). This additional investment will bring Heineken Vietnam's total investment in Vung Tau Brewery to more than USD 500 million and increase the production capacity from 11 million hl/year to 16 million hl/year.Based on General Department of Taxation, a series of the subject's subsidiaries (known as Heineken Vietnam Brewery - Tien Giang Limited Company, Heineken Vietnam Brewery - Quang Nam Limited Company, Heineken Vietnam Brewery - Vung Tau Limited Company, Heineken Vietnam Brewery - Da Nang Limited Company and Heineken Viet Nam Brewery - Hanoi Limited Company) have stopped operations and are conducting procedures to close tax codes in 2023. This movement shows a restructuring plan. According to public information, these companies will be merged into the subject.Heineken - the world's second-largest brewer by volume, cut its 2023 profit growth forecast after an economic slowdown in Vietnam depressed first-half earnings by more than expected. The headwinds of the global recession have limited beer consumer spending and led to prioritizing family budgets for essential needs. Some beer dealers also said that this year's beer market is especially slow in both the wholesale and retail segments. In addition, Decree No. 100/2019/ND-CP regulating penalties for motorcyclists using alcohol was tightened in key cities, significantly reducing beer consumption in the first months of 2023. According to press information, Chairman of Vietnam Alcohol - Beer - Beverage Association (VBA) - Mr. Nguyen Van Viet said that Vietnam's beverage industry is currently in a very difficult period. Beer sales are down by 10% - 20% but raw materials are up by 50%. The association has asked the government to delay the increase in special consumption tax on beverages. In this context of prolonged economic crisis, the operations of the subject and other beer manufacturers could not be favorable in 2023. They must organize promotional and advertising campaigns to sell products.