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Tax sugary drinks to prevent non-communicable diseases

Faced with the high consumption of sugary drinks in Vietnam, which has raised concerns about public health, the World Health Organization (WHO) recommends imposing a special consumption tax on this product line to increase prices, thereby reducing consumption to prevent diseases, especially non-communicable diseases.

Báo Nhân dânBáo Nhân dân12/06/2025

Informing National Assembly delegates about the current status of sugary beverage consumption in Vietnam, the Ministry of Health said that from 2009-2023, the consumption of this product increased fourfold, from 2013-2023 alone, the consumption increased from 3.44 billion liters to 6.67 billion liters.

On a per capita basis, consumption increased from 18.5 to 66.5 litres per person per year, equivalent to about 1.3 litres per person per week; corresponding to 18 grams of sugar per day, accounting for 36% of the WHO maximum recommended level for adults (less than 50 grams of sugar per person per day).

It is forecasted that from 2023-2028, if Vietnam does not have effective control measures, the consumption of sugary drinks will increase by an average of 6.4% per year.

Sugary drinks for sale at a supermarket in Hanoi.

The health consequences of sugary drinks are becoming increasingly clear.

Consumption of sugary drinks has been shown to be directly linked to overweight, obesity, cardiovascular disease and diabetes. Over the past 10 years, the rate of overweight and obesity in school children (aged 5-19) has doubled, from 8.5% (2010) to 19% (2020); in adults it has increased by 30%, from 15.6% (2015) to 19.6% (2020).

Research on overweight and obesity and risk factors of overweight and obesity in Vietnam shows that consumption of sugary drinks is the leading risk factor.

Consumption of sugary drinks increases the risk of obesity by 18%, the risk of high blood pressure by 12%, the risk of type 2 diabetes by 29% and the risk of metabolic syndrome by 29%. The United Nations Children's Fund predicts that by 2030, Vietnam will have about 2 million overweight and obese children.

WHO affirms that applying solutions to limit the use of sugary drinks is a feasible and scientific solution to control and prevent diseases such as cardiovascular disease, cancer, diabetes, overweight and obesity.

Dr Angela Pratt, WHO Representative in Vietnam, said the organization recommends imposing a tax on sugary drinks to increase prices and reduce consumption. This measure is particularly effective in helping to change the habits of children and adolescents, who are more affected by price.

who.jpg
Dr. Angela Pratt, WHO Representative in Vietnam.

Experience has shown that this is a win-win solution – it improves health and reduces health care costs, while increasing revenue for the budget. Tax policies on sugary drinks, along with other measures such as reducing smoking and limiting alcohol consumption, are practical solutions to reduce the burden of non-communicable diseases in Vietnam.

There are currently 108 countries in the world, including 7 countries in the ASEAN region, that have imposed special consumption tax on sugary drinks. However, many experts in this field believe that the 8% tax rate as proposed in the Draft Law on Special Consumption Tax (amended) is low, only 1/5 of the WHO recommendation. This level only serves as a warning to consumers, and has little effect on reducing consumption.

According to research results from the University of Public Health, if a tax is imposed to increase the retail price of sugary drinks by 20% as recommended, the rate of overweight and obesity in Vietnam could decrease by 2.1% in children and 1.5% in adults, respectively, preventing 80,000 cases of diabetes, saving the health system nearly 800 billion VND.

Many experts believe that now is the right time to impose a special consumption tax on this product. Some even say that the tax should have been imposed earlier, it is too late now, we cannot let the next generation become obese and sick before discussing imposing a tax. If we do not take action, the trend of consuming sugary drinks will continue to increase, leading to many negative consequences for children, adolescents, adults and the whole society.

Speaking at a recent National Assembly session, National Assembly delegate Le Hoang Anh (Gia Lai delegation) said that the tax rate plan for Vietnamese standard sugary drinks of more than 5 grams/100ml of 8% and 10% postponed to 2027 and 2028 is too slow and too low. The goal of drafting the law is not consistent with the conclusion of General Secretary To Lam in Notice No. 176-TB/VPTW dated April 25, 2025 of the Central Party Office, considering the work of protecting, caring for, and improving people's health as one of the top political tasks for rapid and sustainable socio-economic development; placing health and health care in a strategic priority position in all strategies.

Delegate Le Hoang Anh said that this is not just a tax policy but a strategic choice of a responsible country. If we do not act today, tomorrow we will pay the price with the health budget, with labor productivity and with the lives of our people.

Imposing strong enough taxes is part of the commitment to sustainable development that Vietnam has declared to the world. A small tax policy but a strong statement, Vietnam does not trade people's health for pure growth, let's act for a healthy and sustainable Vietnam in the era of national development.

Source: https://nhandan.vn/ap-thue-do-uong-co-duong-de-ngan-ngua-cac-benh-khong-lay-nhiem-post886312.html


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