Rising Public Health Concerns
Vietnam is moving forward to accelerate alcohol policy initiatives because authorities recognise the growing burden of health and social harm caused by alcohol. According to a report from the Department of Preventive Medicine under the Ministry of Health:
- Alcohol consumption rose from 2.9 liters per person in 2005 to 9.3 liters in 2019. This is projected to rise further to 10.7 liters by 2030.
- In fact, the same report found alcohol to be the second-highest cause of death in the country.
- WHO data shows that more than 55,400 deaths were due to alcohol in Viet Nam in 2019.
These numbers show how urgently the country needs accelerated and more comprehensive alcohol policy action.
Tax Measures as a Central Prevention Tool
The National Assembly recently approved a plan to raise the Special Consumption Tax on alcohol and beer from 65% to 90% by 2031, as reported by DW. Under earlier proposals, taxes would have risen faster, but alcohol industry lobbying watered the schedule down.
Research confirms that higher alcohol taxation is one of the most effective measures to prevent and reduce alcohol harm. Studies also report that Viet Nam’s reform is expected to generate revenue to support health system investment. For instance, studies cite that higher alcohol taxes bring down population-level alcohol use while providing sustainable funding for development priorities.
Aging Population, Enforcement Challenges, and Strained State Finances
Authorities also face enforcement challenges. Viet Nam introduced a zero-tolerance policy on alcohol-impaired driving in 2019, according to DW. But officials still report difficulties in enforcing these road safety standards. The new tax increases support the government’s broader effort to improve alcohol prevention by lowering population-level consumption and related harms, such as reducing alcohol-impaired driving.
DW notes that the government aims to provide free hospital care to 90% of the population by 2030 and move toward universal health insurance. Out-of-pocket health costs currently account for 45% of all health expenditure. Households often face debt when supporting family members with medical needs. Vietnam’s population is aging, and the government expects rising healthcare demand. One of the biggest drivers of healthcare demand is alcohol – especially also because per capita alcohol consumption is very high among alcohol consumers in Viet Nam, fuelling alcohol use disorder and addiction and severe social harms for people and communities around the affected alcohol consumers.
Alcohol Industry Pushback
While there is a clear need for rapid and accelerated alcohol policy action, the alcohol industry opposes the new policy direction, reports DW. For example:
- Beer sales in Viet Nam declined by 23% in 2023 and 7% in 2022.
- Heineken shut down its Quang Nam brewery in June 2024 as sales tumbled.
- Alcohol industry front groups are scared that annual retail prices could increase by at least 10% due to the alcohol tax increase cutting into their profit margins.
Case studies have documented aggressive lobbying by major multinational alcohol producers in Viet Nam, such as efforts by Heineken to derail alcohol taxation. These insights show how commercial interests work against evidence-based alcohol policy.
Big Alcohol is pushing back against Viet Nam’s accelerated alcohol policy action for several interconnected reasons:
1. Protecting profits in a shrinking market.
Beer sales have already fallen sharply, and the alcohol industry fears that further improved alcohol policy standards – especially higher taxes – will further cut into their revenues. Companies worry about sustained declines such as the 23% drop in 2023 and the 7% decline in 2022.
Industry front groups warn that annual retail prices could rise by 10% or more, directly threatening their margins. Higher taxes are one of the most effective ways to reduce alcohol use, so the industry sees them as an existential threat.
2. Avoiding accountability for marketing and availability practices.
Strengthening enforcement of the 2019 Alcohol Harm Prevention Law and new measures on advertising, sales hours, and alcohol impaired driving counter-measures directly target the predatory and harmful practices of Big Alcohol that drive up population level alcohol consumption and profits.
3. Preserving influence and preventing precedent.
Viet Nam is a critical growth market for multinational alcohol corporations. If the country successfully advances evidence-based policies – especially tax reform and better enforcement of road safety, marketing and availability rules – it could set a precedent for other Southeast Asian countries.
4. Maintaining political access and narrative control.
As documented in case studies, Big Alcohol corporations such as Heineken have actively lobbied to derail tax reforms and shape public discourse. Enhanced alcohol policy threatens this influence, undermining their ability to frame alcohol as an economic asset rather than a public health risk.
Together, these factors explain why Big Alcohol is escalating its efforts to block, delay, and dilute Viet Nam’s public health–oriented alcohol policy reforms.
Government Prioritises People’s Health Over Industry Profit Interests
DW highlights that the government sees population health as a higher priority than industry profits. Since many major alcohol manufacturers have been privatised, the state no longer depends on alcohol sales for revenue. Higher taxes can compensate for falling sales volumes.
The Ministry of Health has proposed a Disease Prevention Fund financed partly by new levies on unhealthy products. This proposal raises concern within the alcohol industry but aligns with evidence-based health promotion strategies.
Global research supports such comprehensive frameworks and notes that Viet Nam’s ongoing reforms build on years of work to create healthier environments for communities. These developments show that Viet Nam aims to reduce harm and promote health through better, modern, evidence-based alcohol policy.
Viet Nam’s accelerated action stems from rising harm, demographic challenges, healthcare financing needs, and an ongoing commitment to protect people’s health. The government continues taking steps that support better alcohol policy, even in the face of industry resistance.