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Tag: Vietnam

  • Vietnam Moves to Ban E-Cigarettes and Heated Tobacco

    Vietnam Moves to Ban E-Cigarettes and Heated Tobacco

    Vietnam’s Ministry of Health proposed adding e-cigarettes and heated tobacco products to the list of prohibited business activities in the draft amended Law on Investment, aligning with National Assembly Resolution No. 173/2024/QH15, which bans production, trade, import, storage, transport, and use of these products from 2025.

    National Assembly Deputy Lê Hoàng Anh said that leaving e-cigarettes unregulated would expose youth to highly addictive nicotine products and provide a cover for criminals to smuggle narcotics. He emphasized the health risks, citing evidence that the devices contain carcinogens and toxic chemicals, and noted that teenagers using e-cigarettes are more likely to transition to conventional smoking.

    Anh urged lawmakers to include the prohibition in Article 6 of the Investment Law, framing it as a matter of public health and national responsibility.

  • Vietnam to Ban E-Cigarette and Heated Tobacco Investments

    Vietnam to Ban E-Cigarette and Heated Tobacco Investments

    Vietnam plans to ban all investment and business activities related to electronic cigarettes and heated tobacco products in a move aimed at protecting public health. The proposal, discussed at the National Assembly’s 50th Standing Committee session, is part of a broader revision of the Investment Law to simplify project approvals and update prohibited business sectors.

    Deputy Finance Minister Nguyễn Thị Bích Ngọc said the draft law would restrict prior approval to sensitive projects, including those affecting national security, the environment, or major infrastructure. The ban aligns with Resolution 173 adopted in November 2024, which calls for a nationwide prohibition on the production, trade, import, storage, transportation, and use of e-cigarettes, heated tobacco, and other addictive substances.

    Lawmakers welcomed the reforms while recommending limited exceptions for exports, scientific research, medical use, or national defense. If passed, the measure would mark Vietnam’s strongest action yet against new forms of tobacco, reinforcing the country’s commitment to public health amid the global surge in vaping and heated tobacco use.

  • Vietnam to Hike Tobacco Taxes Under New Law

    Vietnam to Hike Tobacco Taxes Under New Law

    Vietnam’s National Assembly passed a new law significantly raising the Special Consumption Tax on tobacco, alcohol, and beer starting January 1, 2026. The law introduces a tax roadmap for tobacco products from 2027 to 2031, adding absolute tax amounts on top of existing percentage-based taxes for the first time.

    Under the new plan:

    • Cigarettes: Tax increases by VND 2,000 ($0.08) per pack annually, reaching VND 10,000 ($0.40) per pack by 2031.
    • Cigars: Starting at VND 20,000 ($0.80) per cigar in 2027, rising to VND 100,000 ($4) per cigar in 2031.
    • Other tobacco forms (e.g., pipe or shredded tobacco): Set at VND 20,000/100g or 100ml in 2027, increasing to VND 100,000 by 2031.

    This is the first time Vietnam will implement a structured absolute tobacco tax, following the lead of other countries around the globe. Prior to this, only ad valorem taxes applied.

  • Vietnam Considering Large Tobacco Tax Hikes

    Vietnam Considering Large Tobacco Tax Hikes

    Vietnam’s National Assembly is considering amending the Law on Special Consumption Tax this year to create a robust increase in tobacco taxes, pointing to the World Health Organization (WHO)’s recommendation that the tax be 75% of the retail price. Currently, tobacco taxes in the country are 36% to 38.8% of the price.

    A 2023 report by the Vietnam Health Economics Association estimated that the total cost of tobacco-related healthcare and economic losses reached 108 trillion VND ($4.14 billion) annually, equivalent to 1.14% of GDP and five times higher than the budget revenue generated by the tobacco industry. The report also said cigarettes are too accessible, with 40 domestic tobacco brands selling for less than 10,000 VND (38 cents) per pack.

    The draft amendment being considered in the June session proposes two options: Introducing a fixed tax of 2,000 VND (8 cents) per pack in 2027 or introducing a fixed tax of 5,000 VND (19 cents) per pack in 2026. Both would increase annually until reaching 10,000 VND and 15,000 VND (57 cents) per pack, respectively, by 2031. According to officials, the second, higher-taxed option would generate an annual additional 29 trillion VND ($1.1 billion) in 2030, an increase of 169% compared to scenarios without tax increases, and make the tax rate 59.4% of the retail price.

  • Vietnam Seeks Feedback on Cambodian Tobacco Import

    Vietnam Seeks Feedback on Cambodian Tobacco Import

    Vietnam’s Ministry of Industry and Trade (MoIT) is soliciting public feedback on a draft circular regulating import tariff quota for dried tobacco leaves originating from Cambodia for the 2025–26 period. This is a key step in implementing the Bilateral Trade Promotion Agreement between Vietnam and Cambodia, signed last month.

    According to the draft, the regulation covers the import tariff quota for dried tobacco leaves of Cambodian origin. This item will be eligible for a special preferential import duty rate of 0% when imported into Vietnam. The regulation applies to traders seeking to import under a tariff quota and to relevant organizations and individuals.

    For dried tobacco leaves, importers must obtain an import license issued by the MoIT.  

  • Vietnam’s Cigarettes “Too Affordable”

    Vietnam’s Cigarettes “Too Affordable”

    Between 2010 to 2022, Vietnam’s per capita income increased by 203%. Cigarette prices, however, only rose by 56%, making tobacco too affordable and encouraging consumption, Phan Thi Hai, deputy director of the Tobacco Harm Prevention Fund under the Ministry of Health said. She said Vietnam raised smoking taxes three times between 2008 and 2019, but the increases were so small they had no effect on smoking rates.

    “Vietnam’s cigarette prices remain among the lowest globally, making them easily accessible, especially to low-income groups and youth,” Hai said. She said even with the country’s 75% “special consumption tax” on tobacco products, a pack of cigarettes with a factory price of 3,900 VND (15 cents) ends up costing the consumer only 10,000 VND (39 cents). She also said in Hanoi and HCM City, there are still about 40 cigarette brands priced below 10,000 VND per pack, some as low as 7,000–8,000 VND (27 to 31 cents).

    Hai said to effectively reduce tobacco consumption, Vietnam must reform its tobacco tax policy by implementing a steady tax increase over time. This would ensure that cigarette prices keep pace with income growth and gradually approach the tax level recommended by the WHO. She proposed introducing an absolute tax of at least 5,000 VND (20 cents) per pack by 2026, increasing to 15,000 VND (60 cents) per pack by 2030, which theoretically would help reduce the adult smoking rate to below 36% for men and below 1% for women, consistent with the targets of the National Tobacco Control Strategy by 2030.

    Currently, the total tax share in the retail price of cigarettes in Vietnam is only 36%, below the WHO’s recommended 75% and lower than regional peers such as Thailand (78.6%), the Philippines (71.3%), and Singapore (67.5%).

  • Young Asians Moving from Cigarettes to Vape

    Young Asians Moving from Cigarettes to Vape

    Young people in Southeast Asia are moving from smoking cigarettes to vaping and heated tobacco products (HTPs) instead, a survey of consumer research and data analytics from Milieu Insight said. It surveyed more than 18,000 legal-age adults across Singapore, Malaysia, Vietnam, the Philippines, and Indonesia, studying their consumption trends, flavor preferences, purchase channels, reasons for use, and future adoption.

    “The study shows some key factors influencing this trend,” said Gerald Ang, Milieu Insight’s chief operating officer. “One key factor is the variety of flavor, with fruit and menthol flavor dominating consumer choice in alternative nicotine products.

    “E-cigarettes and heated tobacco products being ‘cheaper’ is also an important reason for using alternative nicotine products.”

    Even though Singapore has banned the use of alternative nicotine products, they are still prevalent among people aged 21 to 29, the survey found, with 7.8% in that age group use vapes and HTPs, while 5.7% smoke cigarettes. The study also found that in Singapore, 43% bought these products from online shopping and messaging platforms, 29% bought the alternative nicotine products from friends and family, and 19% bought them on social media platforms.

    Ang said the study shows that e-cigarette and HTP use in the region is expected to grow, as a sizeable portion of smokers indicated that they were likely to use alternative nicotine products in the next six months.

    In Vietnam, which has also banned these alternative nicotine products, 9.2% of people in the 25 to 34 age bracket are vaping. And in Malaysia, 14.8% of young people between 20 and 29 are using e-cigarettes and HTPs.

  • Vietnam Told Gradual Tax Hike Will Prevent Illicit Tobacco Surge 

    Vietnam Told Gradual Tax Hike Will Prevent Illicit Tobacco Surge 

    Vietnam is reviewing new tax policies for tobacco products, with experts recommending a gradual tax increase every two years instead of higher annual hikes. The Vietnam Tax Advisory Association (VTCA) has raised concerns that sharp, sudden tax hikes may backfire, leading to higher illicit cigarette trade and reduced tax revenue.

    According to the draft law, the government plans to impose a hybrid tax system on tobacco products, combining the current 75% ad valorem tax with a specific absolute tax increase on each pack of cigarettes. The VTCA submitted its recommendations for two proposed scenarios:

    The first scenario suggests an annual increase of VND 2,000 ($0.08) per pack starting in 2026, leading to a total tax hike of VND 10,000 ($0.40) per pack by 2030.

    The second scenario proposes a VND 5,000 ($0.20) increase in 2026, followed by an additional VND 1,000 ($0.04) increase per year from 2027 to 2029, also culminating in a total increase of VND 10,000 ($0.40) per pack by 2030.

    VTCA has urged policymakers to be cautious, citing examples from other countries where abrupt tax increases led to unintended consequences, mainly that smoking rates didn’t drop as consumers turned to cheaper illicit products.

    If this proposal is not accepted, VTCA has recommended that lawmakers adopt the first scenario, which calls for an annual increase of VND 2,000 ($0.08) per pack starting in 2026, reaching VND 10,000 ($0.40) by 2030.

  • Vietnam to Ban Vapes Next Year

    Vietnam to Ban Vapes Next Year

    Vietnam will ban vapes next year, reports VN Express.

    On Nov. 30, the country’s National Assembly approved a measure to prohibit the production, sale, import, storage, transportation and use of e-cigarettes starting in 2025.

    Previously, Minister of Health Dao Hong Lan said e-cigarettes need to be banned “due to their harmful health effects.” NA delegates also agreed that policies to ban and tightly monitor illegal sales are necessary.

    World Health Organization Director-General Tedros Adhanom Ghebreyesus praised Vietnam’s action. “Congratulations, Vietnam, on making this bold decision to protect your citizens, especially the young ones, from vaping and heated tobacco products,” he wrote on social media platform X.

  • Health Ministry Wants to Ban New Tobacco Products

    Health Ministry Wants to Ban New Tobacco Products

    Image: sezerozger

    Vietnam’s health ministry has proposed a national ban on e-cigarettes and tobacco-heating products, reports  Vietnam News.

    During a conference last week, Deputy Minister Tran Van Thuan stressed that all forms of tobacco, including new-generation products, pose a significant threat to public health.

    Nguyen Nho Huy, deputy director of the physical education department at the Ministry of Education and Training, shared that vaping among students had risen from 2.6 percent in 2019 to 8 percent in 2023.

    According to ministry of health data, nearly 1,224 people were hospitalized in 2023 due to health complications directly linked to e-cigarettes and heated tobacco.

    Tran also referenced risks such as battery explosions and nicotine poisoning.

    Heated tobacco, he noted, emits smoke containing toxins similar to those found in traditional cigarettes.

    Participants in the event also expressed concern about the market for illicit vaping products. In the first half of 2024, authorities uncovered 35 cases of illegal trade and possession of drug-infused e-cigarettes, according to Lieutenant Colonel Nguyen Duy Trung.