HCM City beverage production slips in H1

HCM City beverage production slips in H1 (Illustrative image. Source: VNA)

HCM City (VNA) – Growth in beverage
sales in Ho Chi Minh City in the first half of the year slowed down to 2 percent,
according to the Department of Industry and Trade.

The department blamed the slowdown to
prolonged cold weather and a series of downpours this year.

Demand for alcoholic drinks took a hit
after consumption tax was hiked to 60 percent last January as part of the
Government’s efforts to curb consumption of beer and alcohol.

Besides, more and more consumers are
becoming health-conscious and stopping consumption of sugary soft drinks.

With a population of 90 million people,
food and beverages is Vietnam’s second most attractive sector after retail in
the eyes of foreign investors.

HCM City has a total of 2,042 food and
beverage producers with 300 new companies starting up every year.

According to a Government report, in
2011–17, the number of companies in the sector grew by 18.8 percent a year.

According to the Vietnam Industry Research
and Consultant, beverage producers can rely on domestic sources of raw
materials, which is seen as a huge advantage.

Thanks to this, a great variety of drinks
have been introduced in the market, with bottled green tea, water and soft
drinks accounting for the largest share.

Though exports of juices and other
fruit-based drinks, mainly to Asian countries, have been on the rise in recent
years, the domestic market is still the main one for beverage producers.

Despite the slowdown in the first half,
experts are confident sales will gain momentum in the second half considering
the demand for milk-based drinks and low-sugar and eco-friendly products.-VNA

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