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In this era of inflation across the world, where ordering a drink or cocktail in any pub, bar or restaurant proves to be more expensive than an entire dinner, there is a country on the world map where the cost of drinking alcohol is less than an ordinary bottle of mineral water. Popular and very beautiful tourist destination of South-East Asia Vietnam It is famous among tourists and backpackers around the world for its natural beauty, delicious street food and above all ‘the cheapest beer in the world’.
It is a common sight on the streets of Vietnamese cities—especially the capital Hanoi and Da Nang—that a 500 ml sealed packaged drinking water bottle will cost you around 30,000 Vietnamese dong (about ₹90 to ₹100 Indian Rupees). But a full glass of freshly brewed beer at a local stall along the same road costs just 5,000 to 10,000 dong (about ₹18 to ₹32) is happily handed over. That is, for the same price you buy an ordinary bottle of water to quench your thirst, you can enjoy three to four glasses of fresh beer there.
What is ‘Biya Hoi’? The science of fresh draft beer brewed every morning
This cheap beer of Vietnam in local language ‘Bia Hoi’ It is called ‘Fresh Draft Beer’, which literally means ‘fresh beer with gas or air’. This is not an ordinary bottled or canned beer with preservatives.
Highlights of Bia Hoi’s creation and popularity are as follows:
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Daily Production and Consumption (Brewed Daily): Bia Hoi is prepared by naturally fermenting a simple mixture of rice and barley every night in local breweries. It is packed early in the morning in large steel drums and kegs and delivered to all the sidewalk vendors in the city.
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Zero Preservatives and Low Alcohol: Since no chemical preservatives are added to it, its shelf-life is only 24 hours. By evening it is completely consumed and finished. The amount of alcohol in it is only 2% to 3% It is much lighter and refreshing than typical commercial beer (5% to 8%).
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Zero expense of packaging and branding: Bia Hoi is not packaged in glass bottles or aluminum cans, nor is crores of advertising spent on its promotion. Being served in glass jugs or mugs directly from the casks, its production and distribution costs are negligible.
Why is water so expensive and beer so cheap? Understand the economic mathematics behind this
At first glance, it may seem strange to anyone that how water given by nature can be costlier than alcohol. But behind this comes the simple economics of Vietnam’s tax structure, water security and logistics:
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Tap water not being potable: In most cities in Vietnam, municipal tap water is not considered safe to drink directly. Therefore citizens and tourists have to completely depend on bottled mineral water. The price of a 500ml water bottle reaches up to 30,000 dong (~₹96) due to water purification (RO/Filtration), plastic bottling, transportation and retailer margins.
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Very low tax on local draft beer: The government of Vietnam views locally produced unpackaged bia hoi as a ‘cottage industry’ and traditional drink. Luxury or ‘Sin Tax’ is not imposed on it, whereas heavy tax is levied on foreign and canned liquor.
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Abundance of local rice: Vietnam is among the world’s largest rice exporters. In the manufacture of bia hoi, cheap local rice is used instead of expensive malted barley, which greatly reduces raw-material costs.
Sidewalks, small blue plastic stools and Ta Hien Street: Vietnam’s unique social tradition
In Vietnam, drinking bia hoi is not just a means of intoxication, but it is the most important part of the centuries-old social culture and communal living there. As evening falls, hundreds of locals, office workers and foreign tourists sit on small blue and red plastic stools spread out on the sidewalks and enjoy beer on Hanoi’s famous ‘Ta Hien Street’ (Beer Corner) and Ho Chi Minh City’s ‘Bui Vien Street’.
There is no VIP lounge or AC cabin here. Strangers sitting at the same table clink mugs of bia hoi with peanuts, roasted prawns, fried tofu or pork rolls and, in Vietnamese tradition, loudly “Mot, hi, ba… yo!” (One, two, three…cheers!) Here beer is not related to getting drunk, but to relieving the tiredness of the day and sharing happiness and sorrow with each other.
Free beer instead of welcome drink in hotels: Know the culture of other countries
In many 3-star and 5-star hotels and resorts in Vietnam, guests checking in are given a complimentary local beer in the fridge instead of mineral water. Beer has also been considered an essential part of social life in many other countries of Asia and Europe:
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Czech Republic and Germany: Local Pilsner beer is often cheaper than a bottle of water even in Prague, the capital of the Czech Republic, where the beer has the status of ‘liquid bread’ and cultural heritage. In Bavaria, Germany, beer is seen as a complement to food.
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Japan: Many business hotel chains in Japan serve free and unlimited draft beer to their guests for 1 hour in the evening.
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Caribbean and Mexico: All-inclusive resorts in Mexico and the Dominican Republic feature complimentary beer and soda refills in room mini-bars daily.
World’s most expensive vs cheapest countries: The tax game
While beer in Vietnam retails for ₹18 to ₹35, the heavy taxes on alcohol in the Middle East and Nordic countries make it the most expensive drink in the world:
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Qatar: The price of a pint of beer in Qatar ranges from ₹950 to ₹1,200 ($11-$14), due to the 100% sin tax and stringent import duties.
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Iceland, Norway and Dubai: In these countries, due to strict government liquor monopoly and health tax, one has to pay ₹ 850 to ₹ 1,000 for a beer.
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India (Goa): The cheapest liquor and beer in India is found in Goa, where beer is available at a much lower price than other states due to low excise duty.
This ‘Bia Hoi’ tradition of Vietnam proves that the food culture of a country is not just a means of luxury, but it is a unique combination of availability of local resources, low taxes and people’s culture. If you ever visit Vietnam, sitting on that little plastic stool on the sidewalk and sipping a fresh Bia Hoi for ₹32 is an experience you will remember forever.