Country overview: Vietnam
The container glass industry in Vietnam
Vietnam has registered the fastest economic growth among the ASEAN countries over the last five years. The country has been called “the next Asian miracle” by various international financial institutions with healthy economic growth forecasts, which will result in the steady growth of the country’s glass industry. billion litres, equal to nearly 93% of the previous year’s volume (4.35 billion litres). However, the consumption reduced 20% on a year-on-year basis. In the economically dynamic Southeast Asian region, Vietnam stands out as a development success story. Over the last ten years, the country has recorded an average annual growth rate of 6%, which compares favourably with other countries in Southeast Asia. With a population of over 98 million and a median age of 32.7 years, Vietnam has several dynamic trends, which augurs well for the further development of the glass industry in both the major sub-segments. Rising incomes, favourable demographics, and urbanisation are three of the key factors, which will keep the momentum of the current phase of the rapid growth of the glass industry.
Demand analysis Alcoholic beverages account for more than 53% of the total container glass consumption in Vietnam. Non-alcoholic beverages, foods, and pharmaceuticals segments account for 12%, 18%, and 12% respectively, while the rest 5% goes to the miscellaneous segments. Beer is the largest consumer of container glass bottles in the country. With a total consumption of 4,650 thousand kilolitres of beer (in 2019), Vietnam is the 9th highest consumer of beers globally. The importance of container glass in the domestic beer industry is evident from the Continued>>
www.glass-international.com
T
he Vietnamese container glass industry comprises of two large scale and a small scale container glass producer. Alcoholic beverages accounts for the lion’s share of total container glass consumption in the country. Nearly 20% of the total container glass demand is met through imports from the other ASEAN countries and China. Covid-19 didn’t have much impact on the container glass industry in 2020 but the industry felt the impact of the pandemic last year. After a subdued 2021, domestic container glass production and consumption are expected to clock a growth of nearly 8% in the current year. According to the World Bank country report on Vietnam: “Vietnam had a turbulent year in 2021. Despite a strong start in the first semester, the Covid-19 outbreak in April derailed recovery and led to extensive economic costs. Vietnam’s economy grew by 2.58% in 2021. Looking ahead, GDP is expected to rebound to 5.5% growth in 2022 in a scenario where the pandemic is under relative control both at home and abroad.” Nguyen Van Viet, Chairman of the Vietnam BeerAlcohol-Beverage Association said: “Vietnam’s beverage sector is looking for a kickstart after a turbulent couple of years. In 2021, we faced huge challenges related to logistics and shipping activities due to strict movement curbs in the southern provinces. Tough pandemic prevention regulations have caused many difficulties for businesses to transport their products and organise production activities. In 2021, the production volume of beer in Vietnam reached around 4.05
47 Glass International April 2022
country overview Vietnam.indd 1
25/04/2022 14:44:56
