In the most recent draft of Vietnam’s Special Consumption Tax, the Ministry of Finance has included a ten percent tax on drinks with 5 grams or more of sugar per 100 mililitres.
Dubbed the ‘sugar tax’ this has been raised several times in the past. The American Chamber of Commerce in Vietnam came out against the idea back in 2018 arguing there was no evidence legislating a sugar tax would reduce consumption of sugary drinks.
That said, a study on a similar tax in Mexico found that the consumption of sugary beverages fell 6 percent in its first year of implementation.
The new sugar tax, if approved, would be added to Vietnam’s Special Consumption Tax legislation. This also covers alcohol and tobacco products making this law one of the more important taxes new businesses entering Vietnam’s food and beverage sector should be aware of, among several others.
See also: How to Open a Restaurant in Vietnam: Ultimate Guide 2024