Vietnam plans to introduce a new excise tax on sugary drinks starting at 8 percent, but health officials and WHO experts have told a press conference in Hanoi a much higher rate is needed to curb rising obesity and non-communicable diseases, as reported in by Dan Tri.
Key points in the article include:
- The draft revised Law on Special Consumption Tax proposes an 8% tax on sugary drinks in 2027, rising to 10% in 2028.
- WHO recommends a 40% tax to meaningfully reduce consumption and protect public health.
- The Ministry of Health supports the tax plan but acknowledges it falls short of WHO standards and urges a future roadmap to expand both tax rates and taxable categories.
- Current sugary drink consumption in Vietnam has quadrupled since 2009, contributing to rising rates of diabetes, obesity, and heart disease.
- Health officials warn that a modest 10 percent tax will have minimal impact, calling for stronger measures to prevent a looming public health crisis.
Of note, a number of industry-organised conferences to discuss adding sugar drinks to Vietnam’s special consumption tax have tended to skew toward pushing back against the idea. This press conference, however, adds a much needed public health perspective.
See also: Is a Sugar Tax Right for Vietnam?