On Monday, Enoteca, one of Asia’s Top 50 Wine Importers and part of the Japanese beverage giant Asahi, opened its first shop in Vietnam. Located in Ho Chi Minh City, the country’s most populous city, this launch marks the beginning of Enoteca’s wholesale business targeting Vietnamese hotels and restaurants.
The new shop is located in Ho Chi Minh City Takashimaya, a Japanese department store within the large complex Saigon Centre. Spanning 87 square meters, the shop offers 340 wines and features a lounge area as well as an in-shop counter bar with six seats and tables for nine, making it ideal for wine events such as tastings and seminars.
In October 2023, Enoteca established its wholly-owned subsidiary, ENOTECA VIETNAM Co., Ltd., in Ho Chi Minh City, marking its seventh international sales base. This move represents a significant step in expanding into the emerging Southeast Asian market, following its presence in Thailand. Enoteca’s other overseas operations include mainland China, Hong Kong, Taiwan, Singapore, and South Korea.
Wine Australia reports that Vietnam is the fourth-largest wine market in ASEAN, with an estimated market size of 16 million liters in 2022, valued at AU$ 492.4 million (US$ 320.45 million).
Vietnam’s economy is rapidly growing. According to the World Bank, its real GDP per capita has increased more than sixfold, rising from less than US$ 700 in 1986 to nearly US$ 4,500 in 2023. This expanding economy supports a rise in wine consumption. Hanoi Times, Vietnam’s state-owned newspaper, forecasts a compound annual growth rate (CAGR) of 6.4% for the country’s wine market from 2021 to 2027, estimating a market value of US$167 billion in 2027, driven by its growing middle class.
However, the high wine tax presents challenges for wine importers in Vietnam, as the government has proposed doubling the excise tax on wine by 2030. Currently, there is a 35% tax on beverages with less than 20% alcohol content, including wine. If the proposal is approved, the tax rate would increase to 50% by 2026 and 70% by 2030.
For beverages with more than 20% alcohol and beer, the current excise rate is 65%, with proposals to raise it to 80% by 2026 and 100% by 2030.
Click here to read more on Asia’s different wine taxes.
