Beer and wine top the list

"Traffic police measure alcohol levels in villages and communes. Nowadays, who dares to drink beer to celebrate Tet?", Mr. Tran Q. Khoi, head of a village in Thua Thien-Hue, joked when asked if he had bought beer to treat guests during the 3-day Tet holiday. "Usually every year, the family buys a case of soft drinks for the children to enjoy with friends, a case of beer to treat neighbors to Tet and worship ancestors. This year, we have cut it all, partly because the family's income has decreased, and looking around, we see that the neighbors are also having a hard time, so we have to hold back. Beer and wine are not essential goods, so cutting back is okay," Mr. Khoi confided.

The fact that Mr. Khoi's family has cut out beer and wine from their Tet shopping list is not unique. Many people, when asked about buying beer and wine to treat guests during the 3 days of Tet, shook their heads and said they had no plans. Mr. Truong Quang Ka (living in Thu Duc City, Ho Chi Minh City) said that every year, before Tet, he had to buy a few cases of beer to keep at home to "drink" with friends and relatives. This year, beer and wine were removed from the list of priority shopping items. Mr. Ka said: "Most of the time during Tet is spent with family, maybe going on a spring trip to the Central Highlands with the whole family. If so, there is even less need to shop for Tet, especially beer and wine."

Customers rarely buy beer and wine, and sellers have also stopped importing. Ms. Le Pha, Director of NQ Trading and Service Co., Ltd. (Bien Hoa, Dong Nai), said that every year the company imports wine to make gift boxes to sell during Tet. Before the Covid-19 pandemic, on average, about 4,000 - 5,000 boxes were sold each year, mainly because businesses bought them as gifts for Tet. However, during the two years of the pandemic, output decreased by 50% and by the 2024 Lunar New Year season, the company officially stopped selling wine as gifts. "From October to November 2023, the company offered to sell but 100% of customers refused, so we decided not to import anymore," said Ms. Le Pha.

Ms. Ho Thi Loan, owner of a beer dealer on Lac Long Quan Street (Tan Binh District, Ho Chi Minh City), admitted: Up to now, there have been almost no customers asking to buy Tet beer, this is the product with the biggest decline in revenue of the dealer among consumer food products. "The dealer's beer sales last year decreased by about 35 - 40%. My customers are mainly restaurants and households, last year many restaurants closed, and then retail customers also decreased, so sales decreased. Usually every year, the month before Tet, beer prices increase. This year, there are even discounts and promotions, but buyers are still sparse," Ms. Loan sighed and added that the dealer is offering direct discounts to attract customers. For example, Budweiser beer used to cost 447,000 VND/carton of 24 cans, the 2024 Tet version is sold for 430,000 VND/carton, free delivery; Heineken also reduced the price from 420,000 VND to 388,000 VND/case; Carlsberg bought a case for 300,000 VND, the dealer gave away a box of cookies... This is something that rarely happens in the market, because in the past, beer prices often increased, even being in short supply during Tet.

Vietnam's beer and alcohol industry had a difficult year in 2023, witnessing an unprecedented decline. According to Vietdata's report, in 2022, Vietnam became the leading country in ASEAN and third in Asia in beer consumption with about 3.8 million liters/year. By 2023, the beer industry witnessed a sharp decline in consumption. Two famous beer brands, Sabibeco and AB Inbev, both reported losses of VND 17 billion and VND 170 billion, respectively. At this time, it was close to Lunar New Year, but the bustling buying and selling, shortages, and price hikes that were common before were no longer there.

According to the Vietnam Beer and Alcohol Beverage Association, Vietnam's beverage industry is currently in a very difficult period. Beer sales have decreased by 10-20%, while raw material prices have increased by 50%. The main reason is that the global economy is facing difficulties, causing purchasing power to decrease. In addition, the government is also tightening regulations on alcohol concentration of traffic participants, causing beer and alcohol consumption to also decrease.

Reduce new shopping

Buying new clothes for Tet is also a habit that many families maintain with the meaning of letting go of the old and welcoming the new. However, this year, many people have decided to cut back. Ms. Mai Nguyen (residing in Nha Be District, Ho Chi Minh City), who works in the media industry, said she will not buy new clothes to dress up for Tet because her salary and bonuses have decreased sharply while many fixed expenses cannot be cut. "During Tet, I will go back to my hometown with my family, mainly staying at home, so there is no need to buy new clothes while money is not very abundant. Moreover, I have a policy of spending more sparingly to save for future plans," Ms. Nguyen said.

Ms. Le Thi Hoa (residing in District 1, Ho Chi Minh City), an employee of an import-export company, said that every year at this time, her office with more than 10 young female employees is bustling with shopping. "Buying beautiful clothes, making plans to take photos together... has almost become a tradition for us. Every year we have a few spring photo albums since the beginning of December. However, until now, no one has made any moves. Income has decreased sharply, and it is not known whether there will be any bonuses yet. My family of four is still considering going home to visit grandparents during Tet because airfares are too high. The ticket price to Hai Phong alone for the whole family of four is more than 45 million VND. Economy class tickets were sold out more than a month and a half ago, while the Tet holiday schedule for both my husband and I was only available at the beginning of the month. When we had the holiday schedule, we decided to book tickets, but the ticket price had jumped to 5.7 million VND/ticket. Therefore, I have no plans to buy anything. I will decide when it comes," Ms. Hoa said.

Our pocket survey shows that adults' spending on new clothes for Tet is completely cut, some families still buy Tet clothes for their children but also choose affordable items, shop in a limited way, and do not "go all out" like before.

Not only people with reduced incomes are reducing their shopping, even those who are more "generous" still have the mentality of filtering out non-essential items, of which beer, alcohol and clothes are the top priorities. Mr. Truong Quang Ka said that he still buys clothes all year round when necessary. However, the mentality of having to buy during Tet is no longer there. "Tet is no beer, no alcohol, no new clothes, just time to rest and enjoy the spring", Mr. Ka concluded.

Trade expert Vu Vinh Phu commented that during this period, the salaries and bonuses for employees in many units and businesses have become clear, but the demand for clothes and shoes has not increased. Consumers still prioritize essential goods and the general policy is still to save.