Vietnam’s Ministry of Health has proposed a gradual tobacco tax hike, starting with a base tax of VND 5,000 per pack in 2026 and reaching VND 15,000 per pack by 2030, in addition to a 75% proportional tax rate. The ministry aims to reduce male smoking rates to 36% by 2030 through this strategy.
Tobacco Consumption Rising in Vietnam
At a recent anti-smoking conference held by the Ministry of Information and Communications, Phan Thi Hai, Deputy Director of the Fund for Tobacco Control, shared concerning statistics. Tobacco usage in Vietnam is responsible for 85,500 deaths annually from direct smoking and 18,800 from secondhand smoke, totaling over 100,000 tobacco-related deaths each year. The health burden from smoking is projected to increase sharply in the next 10-20 years as current smokers face heightened health risks.
Nguyen Tuan Lam, a WHO representative in Vietnam, noted that while the adult smoking rate declined from 47% in 2010 to 41% in 2021, without tax interventions, it could rise to 43% by 2030. Measures like graphic warnings, public awareness campaigns, and smoke-free zones have helped to some extent but are insufficient in curbing the problem.
Lam pointed out that low tobacco prices in Vietnam contribute to high smoking rates. The tax on cigarettes represents only 36% of the retail price in Vietnam, compared to a global average of 62% and WHO’s recommended 75%. Effective tobacco taxes can significantly lower consumption: a 10% price increase typically reduces usage by 4-5%.
Health Ministry Advocates for Higher Taxes
The Ministry of Health has urged lawmakers to adopt a hybrid tax model, combining absolute and percentage-based taxes, to bring retail prices in line with rising incomes. Their plan suggests a 5,000 VND per pack tax in 2026, scaling up to 15,000 VND by 2030 alongside a 75% proportional tax rate. This measure is expected to bring the tax share close to WHO’s recommended target, helping to reduce male smoking rates to 36% by the end of the decade.
The ministry believes a substantial tax hike, especially for young people, could be instrumental in curbing smoking. According to WHO, a 10% price increase can reduce youth smoking rates by around 10% or more, providing a powerful deterrent against tobacco use among Vietnam’s younger population.
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Source: Vietnam Insider