Postponing Critical Progress in Alcohol Prevention
Vietnam’s Ministry of Finance has proposed delaying the implementation of the amended Special Consumption Tax (SCT) Law on alcohol and beer until 2027 instead of 2026, according to Báo Công Thương reporting. The Ministry initially planned to increase the Special Consumption Tax on beer and other alcoholic products starting in 2026, with two proposed options.
- Option one would see a 5% annual increase until reaching 90% by 2030.
- Option two would start with a 15% increase in 2026, followed by a 5% yearly rise, reaching a 100% SCT rate by 2030.
Now, the government suggests extending the timeline by one year to “reduce the shock” for alcohol companies – a clear lobby victory for Big Alcohol.
Some economic experts, including Dr. Le Duy Binh, CEO of Economica Vietnam, repeated the usual alcohol industry claims during a recent workshop that the revised SCT Law would directly impact production, millions of workers, and the economy.
But this is deception and misrepresentation. Delaying the alcohol tax increase means postponing vital alcohol policy efforts at a time when Vietnam urgently needs to step up action to protect people’s health and safeguard sustainable economic growth from alcohol harm.
Alcohol Taxation FOR Economic Growth AND Health Promotion
Vietnam achieved a 6.93% GDP growth rate in the first quarter of 2025, the highest rate for the period between 2020 and 2025, reports Báo Công Thương. Despite this achievement, the country still falls short of its target and aspirations for prosperity by 2045, as highlighted by Mr. Le Quoc Minh, Editor-in-Chief of Nhân Dân Newspaper. Experts argue that nurturing economic growth should not come at the cost of delaying evidence-based alcohol policy measures.
In fact, evidence-based alcohol policy helps improve productivity and boosts economic growth – especially in Vietnam, where alcohol harm and costs are so high.
For instance, Vietnam’s government has already been urged internationally to prioritise alcohol taxation reforms to enhance health promotion and domestic resource mobilisation. In fact, Movendi International reported already in 2017 that the World Bank has called on Vietnam to increase the SCT on alcohol to align with global best practices and curb alcohol use.
The story and debate from 2017 illustrate the delay and interference practices of the alcohol industry. At the time, community groups, civil society, and experts directed attention to the low level of alcohol taxation in Vietnam.
Sebastian Eckardt, a senior economist at the World Bank, urged the government to consider introducing a higher special consumption tax on tobacco and alcohol given the low rates in Vietnam, according to VN Express reporting.
A worldwide overview showed why raising alcohol taxes is crucial for both economic and health benefits: the economic costs of harm due to alcohol amount to 1306 Int$ per adult, or 2.6% of the GDP.
About one-third of costs (38.8%) were incurred through direct costs, while the majority of costs were due to losses in productivity (61.2%).
- The mean costs of alcohol use amounted to 817.6 Int$ per adult, equivalent to 1.5% of the GDP.
- Adjusting for the omission of cost components, the economic costs of alcohol consumption were estimated to amount to 1306 Int$ per adult, or 2.6% of the GDP.
- About one-third of costs (38.8%) were incurred through direct costs, while the majority of costs were due to losses in productivity (61.2%).
Net Loss to Societies Worldwide
For 13 countries, Movendi International has documented the costs of alcohol harm and the government revenue from alcohol taxation.
The overview shows massive net losses in all countries, with costs due to alcohol harm dwarfing the alcohol tax revenue governments are currently receiving.
This means that countries as Vietnam are facing massive economic losses every year because the alcohol tax is too low and the alcohol companies operating in Vietnam do not pay a fair share for the harms and costs their products and practices are causing.
The overview shows how grave the net losses are and how urgent the need to raise alcohol taxes is to cover much more of the costs.
| Country | Alcohol Tax Revenue | Alcohol Costs | Difference |
| Australia | AUD6.9 billion (2019) | AUD66.8 billion (2017/18) | – AUD59.9 billion / year |
| Canada | CAD13.6 billion(2021/22) | CAD19.7 billion (2022) | – CAD6.1 billion / year |
| Estonia | $171 million (2006) | €205–€303 million (2006) | – €34–132 million / year |
| France | €4 billion (2019) | €102 billion (2019 | – €98 billion / year |
| Germany | €3.2 billion (2020) | €57 billion (2020) | – €53.8 billion / year |
| Norway | NOK18 billion (2020) | NOK80–100 billion (2020) | – NOK62–82 billion / year |
| South Africa | R14 billion (2012/13) | R37.9 billion (2014) | – R23.9 billion / year |
| Spain | €1.3 billion (2007) | €2.7 billion (2007) | – €1.4 billion / year |
| Sri Lanka | $537 million (2014) | $886 million (2015) | – $349 million / year |
| Sweden | SEK15 billion (2019) | SEK103 billion (2019) | – SEK89 billion / year |
| Thailand | $2.8 billion (2007) | $7.9 billion (2007) | – $5.1 billion / year |
| USA | $9.2 billion (2010) | $249 billion (2010) | – $239.8 billion / year |
| India | INR1.8 trillion (2019) | INR6.2 trillion (2019) | – INR4.4 trillion / year |
Important note: It is not possible to compare these figures among the countries because they are calculated differently and for different countries, different aspects of alcohol harm are included to calculate the number of economic costs.
Industry Lobbying Slows Progress
Movendi International has consistently exposed how alcohol industry lobbying hampers public health initiatives in Vietnam. For example, Heineken, one of Vietnam’s largest alcohol producers, has actively fought against SCT increases to protect its profits.
Furthermore, major industry players, including SABECO, continue to lobby for delays despite posting significant profits, demonstrating how corporate interests directly conflict with the need for more ambitious and evidence-based alcohol policy initiatives.
Another alcohol industry-linked expert, Dr. Can Van Luc, even proposed a further delay of the SCT increase until January 1, 2028, with gradual tax increments based on alcohol concentration and sugar content, reports Báo Công Thương. Delaying effective action to promote people’s health through raising alcohol taxes hurts the people and only benefits Big Alcohol companies.
Why Immediate Tax Action Is Necessary
Evidence reported by Movendi International shows that Vietnam’s current alcohol excise tax rates, ranging between 50% and 65%, remain low compared to neighboring countries. For instance, the Philippines and Thailand have adopted much better alcohol excise tax structures, leading to more effective alcohol policy outcomes.
Without timely action, Vietnam risks falling behind and missing critical opportunities to protect communities from the harms caused by alcohol.
Moreover, Vietnam is already facing a heavy burden from alcohol harm, reports Movendi International.
For example, per capita alcohol use increased by 90% between 2010 and 2017, one of the fastest rises globally. Beer consumption reached 47.6 litres per person by 2019, making Vietnam the third-highest consumer in Asia.
This growing alcohol use has devastating consequences:
- 12% of all deaths in Vietnam are linked to alcohol every year.
- Alcohol harm costs the country 3.3% of its GDP – much higher than the global average that recent research has revealed.
- More than 11,000 people die each year from alcohol-attributable cancers.
- Alcohol fuels a significant share of road traffic deaths and gender-based violence.
Delaying alcohol tax reforms risks worsening these already alarming trends.
Moreover, Movendi International points out that delaying alcohol taxation reforms undermines Vietnam’s efforts to achieve the Sustainable Development Goals (SDGs), particularly those related to health and well-being.
For example, Decision 508/D-TTg (2022) outlined a clear roadmap to raise SCT on alcohol and tobacco by 2030. Postponing these steps now would erode hard-won progress toward those targets.
Vietnam has an opportunity to prioritise immediate and ambitious alcohol taxation measures to promote people’s health, generate sustainable revenue, and achieve long-term prosperity.
Improving alcohol policies, especially through higher taxes, is one of the most effective and evidence-based ways to catalyze sustainable development and achieve health for all.