Craft beer in Vietnam is experiencing a remarkable surge in popularity, driven by various factors including a global increase in the appreciation of craft beer. With a rising middle class boasting greater disposable income and a youthful demographic eager to explore new tastes, Vietnam stands as a promising destination for craft beer enthusiasts and investors alike.
As the leading consumer of beer in the ASEAN region, Vietnam’s annual consumption of 3.8 million kiloliters accounts for a significant portion of the global beer market. This trend is expected to persist, fueled by projections indicating that Vietnam’s middle class will exceed 50% of the population by 2045. This demographic shift will inevitably drive demand for high-quality goods and services, presenting lucrative opportunities for craft breweries to thrive in the market.
In this article, we delve into the unique attributes of Vietnam’s beer culture and provide insights into the process of registering a craft beer business in Vietnam as a foreign investor.
Why consider craft beer in Vietnam for investment?
Craft beer enthusiasts have ample reasons to view Vietnam as an ideal investment destination, owing to several compelling factors:
1. Abundance of locally sourced ingredients: Vietnam boasts a diverse array of spices, fruits, and high-quality hops and malt, offering local brewers the opportunity to craft unique beers using indigenous ingredients. This not only supports the local economy but also enables the production of all-natural, high-quality beer at competitive prices.
2. Favorable regulatory environment: Craft beer producers in Vietnam benefit from a relaxed legal framework that allows for the production of small batches of beer. Unlike neighboring countries, where stringent production quotas are imposed, Vietnam offers a conducive environment for brewers to experiment and innovate.
3. Surging demand for unique flavors: Vietnamese consumers are increasingly drawn to distinctive, high-quality food and beverages, driving the growing popularity of domestic craft beers. Particularly among the younger demographic, there is a growing appetite for novel flavor experiences, signaling a significant shift in the country’s culinary landscape.
4. Expanding middle class: With Vietnam’s middle class projected to exceed 50% of the population by 2045, the growth potential for the beer industry is immense. The beer market in Vietnam is poised to reach approximately 10.16 billion USD by 2025, fueled by the preferences of a young, educated population eager to explore diverse beer offerings.
How to obtain a craft beer brewing and trading license in Vietnam?
Before venturing into craft beer production and trading in Vietnam, obtaining the necessary licenses is essential. Here’s a simplified overview of the process:
1. Establishing a company: Foreign investors must establish a company and register their beer production and trading business lines. This involves obtaining an Investment Registration Certificate (IRC) and an Enterprise Registration Certificate (ERC).
2. Obtaining a Certificate of Food Safety eligibility: All beer production and trading enterprises in Vietnam must acquire a Certificate of Food Safety, valid for three years. This certificate ensures compliance with health and safety standards and requires documentation such as an enterprise registration certificate, health certificates, and proof of food safety training.
3. Self-declaring the quality of beer products: After obtaining the Certificate of Food Safety, beer producers must self-declare the quality of their products according to Vietnamese law. This involves testing the beer, declaring its quality through mass media or company websites, and submitting the necessary dossier to the designated agency.
How can Warren B Consultancy Service Co., Ltd. assist with market expansion in craft beer in Vietnam?
At Warren B Consultancy Service Co., Ltd., we specialize in facilitating market entry for businesses seeking to establish a presence in Vietnam’s thriving craft beer industry. Leveraging our extensive local expertise and experience, we provide comprehensive support to foreign investors, guiding them through the intricacies of setting up a craft beer business. From securing necessary licenses to navigating regulatory requirements, we ensure a seamless and successful market expansion strategy.
Contact us today to learn more about tapping into the lucrative opportunities offered by Vietnam’s burgeoning craft beer market. Let Warren B be your trusted partner in realizing your investment goals in Vietnam.