VietNamNet Bridge - Average wine consumption in Vietnam is still low at 250 ml per head per annum, which means there are great opportunities for Vietnamese wine producers.

Though inheriting the well-known French winery Lafaro, Da Lat Wine brand only debuted in the market in 1999. And though present in the market for 15 years, Ladofood, the owner of Da Lat Wine brand, still found it difficult to conquer Vietnamese drinkers’ hearts.

In 2012, Ladofood imported new grape varieties and hired foreign experts to guide farmers to cultivate grapes in accordance with new methods. However, only two years later could Ladofood choose suitable grape varieties.

Nguyen Van Dung, director of Dalat Beco, also said choosing suitable input materials was a headache for Vietnamese manufacturers. The grape varieties imported to Vietnam in the 1930s were mainly for fruits. They do not bear the typical color of wine and don’t taste acrid enough.

In 2008, Dalat Beco decided to team up with a French company to set up a grape farm in Ta Nung, about 17 kilometers from Da Lat City, where it grows Sirah, Cabernet and Merlot grapes, hoping to have French grapes and French technology to make French-style wine in Vietnam. 

However, as the grapes there have uneven ripening, they still have not been put into operation.

When asked about the wine production, Nguyen Thi Bich Hue, director of Vinh Tien Company, said she once thought it was easy to make wine but admits that she was mistaken.

“It requires huge investments,” she explained. “A 30,000 liter stainless tank alone costs hundreds of millions of dong. Meanwhile, all the machines must be imported from Europe.”

In an effort to develop the material area, Vinh Tien decided to import 3,000 grape plants from Italy to grow in Vietnam. 

However, the quality of the grapes has been unsatisfactory because of the climate conditions in Da Lat. Finally, Vinh Tien had to use Phan Rang’s grapes and Da Lat’s mulberry to make wine. 

Vinh Tien’s products have become better known in the market, but Hue said the path ahead is still thorny.

As wine is listed as an alcoholic drink, it bears a luxury tax of 25 percent. The regulation on stamping wine products to prevent counterfeit goods also increases the production cost. 

In addition, it is difficult to expand the distribution network because sale agents are allowed to sell wine if they can satisfy requirements.

However, stable income, plus the great potential of the unexploited market, still encourage investors to inject money into wineries.

VMVASIA, a French manufacturer, has decided to grow many different grape varieties in Da Lat to find the most suitable varieties to make wine in Vietnam.

DNSG