Vietnam needs to increase cigarette tax to 75% of retail price

On June 3 in Hanoi, the Press Department (Ministry of Culture, Sports and Tourism) in collaboration with HealthBridge Canada in Vietnam organized the Workshop "Tobacco Tax and Sustainable Development".

According to Ms. Nguyen Thi An, Director of HealthBridge Canada in Vietnam, the fact that cigarettes are sold at very cheap prices in Vietnam, even under 10,000 VND/pack, is becoming a major concern.

The workshop aims to provide information and raise awareness about the harmful effects of tobacco as well as the role of tax policy in protecting public health and promoting socio -economic development.

In Vietnam, with more than 15 million smokers, the country is facing a serious health and economic burden. Each year, tobacco is responsible for more than 100,000 deaths, including non-smokers who are exposed to second-hand smoke.

According to statistics, medical costs and economic losses caused by tobacco amount to about 108,000 billion VND per year, equivalent to about 1.1% of GDP - an alarming figure for the country's sustainable development.

Vietnam is currently among the 15 countries with the highest male smoking rates in the world and ranks third in the ASEAN region. Although the smoking rate among men has decreased from 47.4% in 2010 to 41.1% in 2021, the reduction is still modest.

The main reason is that tobacco prices are too cheap, with taxes accounting for only about 36% of the retail price, much lower than the World Health Organization (WHO) recommended level of 75%. Keeping tobacco prices low makes the product accessible, especially to young people and low-income earners.

Speaking at the workshop, Mr. Dang Khac Loi, Deputy Director of the Press Department, emphasized that tobacco is the leading cause of death worldwide, claiming the lives of more than 8 million people each year, of which about 1.3 million die from passive smoking. The number of people who die from tobacco is greater than the total number of people who die from HIV/AIDS, tuberculosis and malaria combined.

He said that increasing tobacco taxes is one of the most effective measures to reduce consumption and prevent the serious consequences that tobacco causes to society.

MSc. Nguyen Tuan Lam, WHO representative in Vietnam, also affirmed that increasing cigarette prices by just 10% could help reduce consumption by 4% in developed countries and 5% in developing countries, especially among children and the poor.

According to him, increasing taxes is a "win-win" measure, both reducing the burden of disease and increasing budget revenue, while also contributing positively to the goal of sustainable development.

WHO recommends that Vietnam apply a roadmap to increase tobacco tax from 2026, with a minimum increase of VND5,000/pack and reaching VND15,000/pack by 2030.

Mr. Dang Khac Loi, Deputy Director of the Press Department, spoke at the Workshop.

The goal is to increase the total tobacco tax to at least 75% of the retail price, in line with international standards. The combination of absolute tax and proportional tax is considered the optimal solution to control tobacco consumption more effectively and sustainably.

Agreeing with this view, Master Dinh Thi Thu Thuy, Deputy Director of the Legal Department (Ministry of Health), said that the Ministry of Health fully supports the plan to increase the absolute tax from 5,000 VND/pack in 2026 to 15,000 VND/pack in 2030, combined with a tax rate of 75%.

Analysis from the Ministry of Health shows that this tax rate could help reduce the smoking rate among men to 36% by 2030, approaching WHO's recommendation on tobacco tax structure.

In addition, the Ministry of Health also recommended not to legalize new tobacco products such as e-cigarettes and heated tobacco products in the Law on Special Consumption Tax (amended).

This proposal aims to implement the spirit of Resolution 173/2024/QH15 of the National Assembly on banning the production, trading, transportation and use of new tobacco products to protect the younger generation from the risk of addiction to harmful substances.

According to Ms. Nguyen Thi An, Director of HealthBridge Canada in Vietnam, the fact that cigarettes are sold at very cheap prices in Vietnam, even under 10,000 VND/pack, is becoming a major concern.

Compared to people's increasing income, cigarettes are becoming more accessible, increasing the risk of smoking among young people and vulnerable groups in society. She emphasized that increasing taxes is an effective policy tool to protect public health.

In addition to policy solutions, communication plays a key role in changing social awareness about the harmful effects of tobacco. According to statistics from the Press Department, from January 1 to May 31, 2025, press agencies published 11,327 news and articles related to this topic, including more than 2,000 articles on the harmful effects of tobacco, more than 1,500 articles on tobacco tax policy and nearly 800 articles analyzing the relationship between tobacco tax and sustainable development.

Mr. Dang Khac Loi, Deputy Director of the Press Department, affirmed that the Finance-Investment Newspaper is one of the press agencies that has done a good job of propagating the harmful effects of tobacco and the need to increase taxes on this product.

According to the leader of the Press Department, various forms of propaganda such as reports, talk shows, infographics and television programs have contributed significantly to raising public awareness.

It can be affirmed that increasing tobacco tax is not only an effective financial tool but also a necessary public health policy. In the context of Vietnam aiming for sustainable development, reforming tobacco tax policy is a strategic step to help reduce the burden of disease, protect future generations and promote comprehensive socio-economic development.

Source: https://baodautu.vn/viet-nam-can-tang-thue-thuoc-la-len-75-gia-ban-le-d295676.html