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Monday, June 16, 2025
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Vietnam Parliament Approves Raising Alcohol Tax to 90 Percent by 203

This Week

On 14 June, Vietnam’s parliament passed legislation to increase the special consumption tax on beer and strong alcoholic beverages to 90 percent by 2031, rising from the existing 65 percent rate. 

Under the new law, tax rates on  liquor with more than 20 percent alcohol content and all beers will climb to 70 percent by 2027, before hitting the final 90 percent threshold in 2031. The present tax sits at 65 percent, while earlier proposals from last year had suggested rates reaching as high as 100 percent.

The sector has already encountered substantial obstacles since 2019, when Vietnam implemented strict drink-driving regulations establishing a zero-alcohol threshold for drivers.

The tax increase compounds existing pressures on Vietnam’s beer industry, which is led by Dutch brewer Heineken, Denmark’s Carlsberg, and domestic producers Sabeco and Habeco.

Responding to declining demand and the original tax proposal, Heineken halted operations at one of its Vietnam facilities last year, demonstrating the financial pressure on major manufacturers.

Vietnam ranked seventh globally in beer consumption in 2023, according to a report by Kirin Holdings, a Japanese beer company.

Nearly 41,000 deaths in Vietnam each year are linked to alcohol use, according to the Vietnam’s Ministry of Health.

Lawmakers also approved a new 8 percent tax on sugary beverages containing over 5 grams of sugar per 100 milliliters. This will become effective in 2027 and escalate to 10 percent in 2028, reflecting Vietnam’s comprehensive public health strategy targeting both alcohol and sugar intake.

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