Tobacco consumption in Vietnam tends to increase
Speaking to the press on the morning of November 21 at a conference on tobacco harm prevention organized by the Ministry of Information and Communications in Hanoi, MSc. Phan Thi Hai – Deputy Director in charge of the Tobacco Harm Prevention Fund, Ministry of Health – said that in Vietnam, tobacco use causes 85,500 deaths each year. Passive smoking causes 18,800 deaths. A total of 104,300 deaths per year are due to tobacco-related diseases.
“Tobacco use creates a burden of disease and reduces the quality of the labor force. Of these, more than 15 million Vietnamese smokers and tens of millions of passive smokers are at risk of tobacco-related diseases and premature death.
The burden of disease caused by tobacco use will be more evident in the next 10-20 years when current smokers face the health impacts of tobacco use,” said Ms. Hai.
Master Nguyen Tuan Lam, WHO Office in Vietnam, added that in 2010, the rate of adults smoking was 47%, by 2015 it was 45%, and by 2021 it was 41%. However, it is estimated that this rate will start to increase if there are no tax interventions.
Accordingly, this figure could increase to 43% by 2030, which is reflected in increased production and consumption output.
Control measures (such as graphic warnings, media, tax increases, smoke-free environments, etc.) have been effective to a certain extent but not enough.
“An important factor leading to the current high rate of tobacco use is low tobacco taxes and prices in Vietnam.
Tobacco taxes and retail prices in Vietnam are extremely low compared to other middle-income countries in the world as well as within the ASEAN region.
The increase in tax and price of cigarettes in Vietnam in recent times is too low compared to the growth in per capita income, making cigarettes increasingly cheaper and easier to buy over time,” said Mr. Lam.
Similarly, the tax share of the retail price of cigarettes in Vietnam is about 36% compared to 59% in middle-income countries and 62% globally, and is much lower than the WHO recommendation of 75% of the retail price.
Tobacco taxes, when used effectively, are the fastest and most cost-effective way to reduce tobacco use. WHO estimates that taxing tobacco products to increase retail prices by 10% could reduce consumption by 4–5%.
Ministry of Health proposes higher tax on cigarettes
The draft Law on Special Consumption Tax (amended) will be submitted to the National Assembly for comments at this session and approved in May 2025. Regarding tobacco products, according to the proposal of the Ministry of Finance, with 2 options, the absolute tax rate by 2030 will be 10,000 VND/pack, accounting for about 59.38% of the retail price.
However, the Ministry of Health and the World Health Organization (WHO) propose a higher absolute tax rate.
Ministry of Health’s proposal to increase tobacco tax – Photo: Ministry of Health
The Ministry of Health proposes to add absolute tax along with proportional tax to switch to a mixed tax calculation method and the total tax rate must be large enough to impact changes in consumption levels. At the same time, tax should be increased in a regular manner so that cigarette prices keep up with income growth and gradually move towards the optimal tax rate of 70-75% of retail prices as recommended by WHO.
Specifically, the absolute tax rate should increase from VND5,000/pack in 2026 to VND15,000/pack (20 cigarettes/pack) in 2030, in addition to the 75% tax rate. This option will help achieve a tax rate of 65% of the retail price, close to the WHO recommendation, and help reduce the rate of tobacco use among men to 36% by 2030.
According to WHO, an average 10% increase in tobacco prices would reduce tobacco use by about 4% in high-income countries and 5% in low- and middle-income countries.
Tax measures are particularly effective among youth, with estimates that a 10% increase in cigarette prices would reduce tobacco use by 10% or more among young people.
Source: tuoitre.vn (Willow)
Source: Vietnam Insider