Vietnam’s National Assembly has passed an amendment to the Law on Special Consumption Tax, introducing new excise taxes on soft drinks and revising tax schedules for alcohol, tobacco, air conditioners, and fuel, VN Express has reported→view source.

The amended law will take effect on 1 January 2026.

Key details:

Soft drinks tax: 8 percent from 2027, rising to 10 percent in 2028; excludes milk, mineral water, fruit juices, and nutritional liquids.
Alcohol tax: Wine (≥20°) to rise from 65 percent in 2026 to 90 percent by 2031; lower-strength wine and beer follow similar escalations.
Tobacco tax: Shift to absolute tax from 2027—VND 2,000 per pack (cigarettes), rising to VND 1,000 in 2031; cigars to reach VND 100,000 per unit.
Air conditioners: Units with 24,000–90,000 BTU to be taxed at 10 percent from 2026; smaller and very large units exempt.
Fuels: Mineral gasoline retains 10 percent tax; biofuels (E5, E10) benefit from lower rates at 8 and 7 percent respectively.

Multinationals like Coca-Cola, PepsiCo, and Suntory PepsiCo may face pricing pressure as they decide whether to absorb the tax or pass it on to consumers in an increasingly price-sensitive market.

Reformulation of sugary products to fall below the 5 grams per 100 ml threshold is likely to accelerate, especially since drinks with synthetic sweeteners could also be taxed in the future.

That said, over the longer term, aligning with Vietnam’s public health goals and emphasising sugar-reduction efforts could help strengthen ESG credentials and brand reputation in a market that’s moving toward regulatory convergence with other ASEAN countries.

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