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Craft beer in Vietnam is growing, and it’s easy to understand why. Several factors contribute to its rise such as a global surge in craft beer popularity. These include a rising middle class with greater spending power, and a young population eager to explore new flavors.
Vietnam is currently the leading consumer of beer in the ASEAN region, with an annual consumption of 3.8 million kiloliters, comprising 2.2% of the global beer market. This trend is expected to persist, given that Vietnam’s middle class is projected to keep growing and comprise more than 50% of the population by 2045. As the middle class in Vietnam expands the demand for high-quality goods and services is likely to increase, with craft beer no exception. This will undoubtedly propel the beer industry in Vietnam to new heights and create opportunities for craft breweries to establish themselves as key players in the market.
In this blog post, we will explore the unique characteristics of Vietnam’s beer culture and how you can register a craft beer business in Vietnam as a foreigner.
Craft beer enthusiasts have good reason to consider Vietnam as a prime destination due to serval key factors:
Diverse and locally-sourced ingredients for craft beer
Vietnam’s diverse range of spices and fruits, along with high-quality hops and malt, provides a unique opportunity for local brewers to create craft beers using only locally sourced ingredients. This not only supports the local economy but also allows for the use of all-natural ingredients, resulting in high-quality beer at a lower cost compared to other countries.
Relaxed legal environment for craft beer in Vietnam brewers
Craft beer in Vietnam benefits from a relaxed legal environment that allows brewers to produce small batches of beer. This is in contrast to neighboring countries like Thailand, where a minimum annual production of 10,000 liters is required from brewers.
Growing demand for unique and quality craft beer in Vietnam
Vietnamese consumers are developing a taste for distinctive and high-quality food and beverages. As a result, the popularity of domestic craft beers is on the rise. In particular, the younger generation in Vietnam wants to explore new flavors. This shift highlights a significant change in the country’s food and beverage landscape.
Growing middle class in Vietnam
Vietnam’s middle class will make up over 50% of the population by 2045. This growth presents a significant opportunity for the beer industry in the country. This is why the beer market in Vietnam is set to reach around 10.16 billion USD by 2025. This increase in demand is due to the country’s young and well-educated population, who want to try unique beer flavors.
Before you start brewing and selling craft beer in Vietnam, you need to get a craft beer brewing and trading license. Here are the steps involved in the process:
Establishing a company and registering your beer production and trading business lines
Before you begin producing and selling beer in Vietnam, you have to establish a company and register your beer business. While a domestic investor needs to apply for an Enterprise Registration Certificate (ERC), Foreign investors have to apply for an Investment Registration Certificate (IRC) as well as an ERC.
Emerhub assists in registering your craft beer business. Additionally, it also helps in obtaining all the necessary licenses including IRC and ERC.
Applying for a Certificate of Food Safety eligibility
All beer production and trading enterprises in Vietnam have to apply for a Certificate of Food Safety. This certificate is valid for three years and ensures that your business meets all necessary safety standards. To apply for this certificate, your enterprise has to meet the following conditions:
- Beer production conditions and facilities according to health standards.
- Clean water source in the facility during beer production.
- Beer quality control system with regular quality checks.
A business has to prepare the following documents for the Certification of Food Safety
- Application form for a Certificate of Food Safety
- Copy of Enterprise Registration Certificate.
- Written explanation of facilities, equipment, and tools to ensure food hygiene and safety conditions.
- Health certificate issued by a district-level or higher medical facility to the enterprise’s owner and the person responsible for producing beer.
- Certificate of training in food safety and hygiene knowledge for the enterprise’s owner and the person responsible for producing beer.
Emerhub helps in obtaining all the relevant documents including the health certificate and certificate of training in food safety.
Self-declaring the quality of beer product
Once you get a Certificate of Food Safety, you can begin producing and trading beer. But, before you can sell your products, you need to self-declare the quality of your beer according to Vietnamese law. It involves testing your beer products, self-declaring them on the mass media or your company’s website, and submitting a dossier to the competent agency designated by your province’s People’s Committee.
At Emerhub, we specialize in helping businesses navigate the complexities of market entry in Vietnam. With our extensive local knowledge and experience, we can assist foreign investors in setting up their craft beer businesses. Additionally, we also provide ongoing support to ensure long-term success. We help our clients get all the licenses to start a craft beer business.
Get in touch with us today to learn more about setting up your craft beer business in Vietnam.
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