June 17, 2025 (Hanoi, Vietnam)—In a landmark move to improve public health and generate sustainable revenue, the National Assembly of Vietnam has passed amendments to the Law on Special Consumption Tax, increasing the excise taxes on tobacco products and other consumption-regulated goods, including alcohol and sugary drinks. This decision marks a meaningful step forward in Vietnam’s long-term effort to reduce use of unhealthy products.
The passage of this legislation is the result of the strong leadership of the Ministry of Finance and years of persistent, evidence-driven advocacy led by the Ministry of Health, the Vietnam Tobacco Control Fund, the World Health Organization (WHO), and a committed network of public health partners, including Vital Strategies.
“Vietnam’s decision to raise excise tobacco taxes demonstrates commendable political will to protect the health of its citizens, particularly the next generations and those most harmed by unhealthy products, especially in low-income communities,” said Dr. Mary-Ann Etiebet, President and CEO of Vital Strategies. “Health taxes on all unhealthy goods—tobacco, alcohol, and ultra-processed products like sugary drinks—save lives, reduce health care costs and generate revenue. We thank the National Assembly and government of Vietnam for this bold investment in their future.”
Vital Strategies has worked closely with Vietnam partners over the past 10 years to support a wide range of activities that laid the groundwork for this success, including:
• Providing technical support on evidence and analysis for the rationale and projected health and economic impacts of various reform scenarios.
• Facilitating information sharing on the multi-dimensional impacts of the tobacco tax increase with members of the National Assembly and relevant ministries.
• Supporting national and regional mass media campaigns to build public and political support for stronger taxation.
• Organizing capacity-building initiatives for journalists and important organizations, including the Youth Union and Women’s Union, to amplify health messaging and advocacy across Vietnamese society.
“These combined efforts have helped elevate taxation of unhealthy products as both a public and fiscal health solution in Vietnam. The adopted tax increases represent an important step forward, signaling a significant shift in policy awareness and commitment, an important foundation for continued future reform. And we applaud the commitment to sustained increase in these taxes over time,” Dr. Etiebet said.
Vietnam loses 84,500 lives from active smoking and another 18,800 from exposure to secondhand tobacco smoke each year. Tobacco use remains one of the country’s leading preventable causes of death. Increasing tobacco taxes is internationally recognized as the most cost-effective strategy to reduce smoking rates, especially for youth, protect public health, and generate revenue for health and development.
Vietnam now joins a growing list of 100 countries and territories implementing taxes on sugary drinks, with evidence from many of these settings showing declines in consumption. This legislative development adds to Vietnam’s growing portfolio of public health efforts and contributes to the momentum of the global movement for more substantial health taxes.
As the implementation of the revised tax law unfolds, Vital Strategies and its partners remain dedicated to working alongside the government of Vietnam, civil society and international allies to build on this momentum. In the months ahead, efforts will focus on monitoring impact, addressing enforcement gaps and continuing to advocate for stronger, more progressive tax measures in line with global best practice.
The passage of this amendment is not the finish line, but a critical foundation for deeper, more ambitious reforms to come, advancing Vietnam’s obligations under the WHO Framework Convention on Tobacco Control and its commitment to reducing the consumption of alcohol and sugary drinks.
About Vital Strategies
Vital Strategies is a global health organization that believes all people should be protected by strong and equitable health policies and systems. We partner with governments, communities and organizations around the world to reimagine public health so that health is supported in all the places we live, work and play. The result is millions of people living longer, healthier lives around the world.
To find out more, please visit www.vitalstrategies.org or follow us on LinkedIn.
Media Contacts
Ally Davis; +1 (516) 205-4203
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