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Vietnam ministry proposes 100 percent special consumption tax on alcohol

Vietnam’s Ministry of Finance has proposed increasing the special consumption tax–the SCT–on alcohol to 100 percent. For beer in Vietnam, it is currently set at 65 percent, and for spirits under 20° proof it is 35 percent and over 20° proof 65 percent.

Of note, major beer makers in Vietnam, including the makers of the popular Beer Saigon and Beer Hanoi brands reported falling profits in 2023. A crackdown on drink-driving has partially been blamed alongside the pending increase in taxes on alcoholic beverages–though nothing has been confirmed and its not clear how a future tax increase might have influenced last years sales.

Currently the price of a beer bought at a convenience store, including the current SCT, is around VND 15,000 or US$0.59 cents. For perspective, the average wage in Vietnam, as of the first quarter of this year was VND 7.6 million, around US$304.61.

See: How to Open a Bar in Vietnam 2024: Ultimate Guide

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