Jun 16, 2025 (MarketLine via COMTEX) --
Reports suggest duty on alcohol is to go up from 65% to 90% by 2031.
Vietnam's National Assembly has approved a proposal to raise the consumption tax on alcohol, and bring in a levy on sugary drinks, according to the local branch of the World Health Organization (WHO).
Reports from Reuters suggest the consumption tax on alcohol will be raised from 65% to 90% by 2031.
In its draft tax proposal last year, the country had reportedly planned to raise duties on alcohol to 70-80% by 2026 and 90-100% by 2030.
Under the newly approved legislation, duty on beer and liquor will go up to 70% by 2027, according to Reuters.
According to the WHO, the National Assembly also approved the introduction of a levy on sugar-sweetened drinks.
The move will see a 10% levy placed on "the factory price" of sugar-sweetened beverages, the UN health agency said.
The newly approved law will also see a revised tax on tobacco.
Commenting on the news on Saturday (14 June), WHO representative in Vietnam Dr Angela Pratt said: "WHO is very pleased that law makers have seized this opportunity to achieve a aEUR~win-winaEUR(TM) of reducing the consumption of tobacco, alcohol and sugary drinks aEUR" and therefore reducing harm and health costs for decades to come aEUR" while generating additional revenue for key government priorities.
"Reducing consumption of these unhealthy products will improve population health, and in doing so, workforce participation and productivity."
Vietnam is an important market for major brewers including Heineken, which sells its namesake brand there as well as local beers Bia Vet and La Rue, among other brands. It has six production facilities owns in the country.
In April, Heineken reported its organic net revenue and volume in Vietnam rose "in the mid-teens" in the first quarter of the year.
In 2024, Heineken's underlying net revenue organically grew at a "high-single-digit" rate, with beer volumes up at a "mid-single-digit" rate. The Amstel brewer said Vietnam's beer market "stabilised" in 2024 after being hit in 2023 by an economic slowdown in the country and the stricter enforcement of drink-driving regulations.
The country is also an important market for Carlsberg. Its portfolio in Vietnam includes its namesake label, Tuborg and the local brands Halida and Huda.
Carlsberg said it saw its volumes in Vietnam "impacted by a difficultpricing environment" in its first quarter. Sales volumes in 2024 were "flat", although Carlsberg reported "solid growth" from its "premium" brands such as Tuborg, 1664 Blanc and Carlsberg.
Just Drinks has asked both Heineken and Carlsberg to comment on the newly approved excise tax for alcohol.
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