The country’s biggest brewer Sabeco has dropped its revenue target to an eight-year low of VND23.8 trillion ($1 billion). Post-tax profit is set to fall to a six-year low of VND3.2 trillion ($138 million). The decreases are 37 and 39 percent respectively from last year.

Its soft drink subsidiary Chuong Duong Beverage expects a year-on-year revenue drop of 3 percent to VND259 billion ($11 million) and a post-tax profit fall of 26 percent to VND12 billion ($517,400).

Habeco, dominating the northern beer market, expects a revenue fall of 44 percent from last year to VND4.2 trillion ($181 million), and a 50 percent drop in post-tax profit to VND248 million ($11 million).

The companies attributed the fall to the coronavirus pandemic, which caused restaurants and bars to shut down in March and April this year.

A new decree on drunk driving that doubles fines has also caused revenues from alcoholic drinks to plummet, they said.

Habeco in the first quarter posted its first loss in over a decade, while Sabeco saw post-tax profit fall to a seven-year low.

Both companies do not expect a quick recovery in demand this year as rising unemployment and declining income slows consumption of beverages.

SSI Research, a unit of top brokerage SSI Securities Corporation (SSI), has lowered the prospects of beer stocks from "neutral" to "negative."