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The Star
6 days ago
- Business
- The Star
Health Ministry urges sugary drink tax as consumption soars in Vietnam
HANOI: The Ministry of Health (MoH) has raised concerns over the sharp rise in sugary drink consumption in Vietnam, warning that failure to impose a special consumption tax could come at the cost of public health. In 2023, the average Vietnamese consumed around 66 litres of sugary beverages, equivalent to 18g of sugar per day, or 36 per cent of the World Health Organization (WHO)'s maximum recommended intake for adults. Between 2009 and 2023, sugary drink consumption quadrupled, nearly doubling in the past decade alone. Per capita consumption surged by 350 per cent, from 18.5 to 66.5 litres per year. A 2019 national survey found that nearly 34 per cent of students aged 13–17 drank carbonated beverages at least once a day. The WHO estimates that without stronger controls, sugary drink consumption in Việt Nam could rise by an average of 6.4 per cent annually through 2028, fuelling higher rates of obesity, diabetes and heart disease. The MoH says that taxing sugary beverages is one of the most effective and low-cost interventions to reduce sugar consumption and prevent non-communicable diseases. The WHO recommends a tax that raises retail prices by at least 20 per cent. According to research by the Hanoi University of Public Health, such a tax in Việt Nam could reduce rates of people who are overweight or obese by 2.1 per cent and 1.5 per cent respectively, prevent 80,000 diabetes cases and save nearly VNĐ800 billion (US$30.77 million) in healthcare costs. At a National Assembly session debating amendments to the Law on Special Consumption Tax, Finance Minister Nguyen Van Thang said WHO data showed Vietnam was among the countries with the fastest-growing sugary drink consumption. 'Most of the sugar we consume comes from these beverages, driving obesity. WHO recommends a minimum 20 per cent tax. Frankly, we should have acted sooner,' he said. Delegate Le Hoang Anh from Gia Lai Province rejected the proposed 8–10 per cent tax from 2027 as too slow and too weak, arguing it fails to align with the national priority of putting health first. He pointed to countries like Thailand, which introduced a sugary drink tax in 2017, and the Philippines and Malaysia, which now collect billions of dollars annually from similar levies. 'If we don't act today, we will pay tomorrow, in lives lost, higher medical costs and reduced productivity,' he warned. Anh recommended adopting a 10 per cent tax starting in 2026, rising to 20 per cent by 2030, along with an absolute tax based on sugar content, like Thailand's. At least 108 countries have already imposed a special consumption tax on sugary drinks, including six in South-East Asia: Thailand, Malaysia, the Philippines, Brunei, Cambodia and Laos. The MoH says this demonstrates that such a tax is feasible and necessary for developing countries like Vietnam. Since 2017, Thailand has imposed a tiered excise tax on sugar-sweetened beverages based on their sugar content, rather than a flat percentage. The higher the sugar content, the higher the tax, reaching up to 5 baht ($0.15) per litre for drinks with more than 14 grammes of sugar per 100ml. On top of this, a 14 per cent value-added tax is also applied to the ex-factory price. The tax increases retail prices by approximately 11 to 20 per cent, encouraging manufacturers to reduce sugar content and helping curb sugar-related health risks. In the Philippines, the excise tax on sugar-sweetened beverages has been in effect since 2018. It imposes a specific excise tax on sugar-sweetened beverages, charging 6 pesos ($0.10) per litre for drinks sweetened with sugar or non-caloric sweeteners and 12 pesos per litre for those containing high-fructose corn syrup. This tax has effectively raised retail prices by about 16 to 20 per cent, aiming to curb consumption and tackle health issues like obesity and diabetes. — Vietnam News/ANN
Reuters
13-05-2025
- Business
- Reuters
Vietnam seeks to extend VAT cut until end-2026
HANOI, May 13 (Reuters) - Vietnam's government is seeking to extend a 2 percentage point cut in its value-added tax rate until the end of next year to support economic growth, state media reported on Tuesday. Finance Minister Nguyen Van Thang on Tuesday submitted a plan to extend the tax cut, which was due to end on June 30, to the parliament for approval during its current session, Nhan Dan newspaper reported. "The VAT cut needs to be extended to promote economic growth, support families and businesses, boost manufacturing, tourism and domestic consumption," Thang was quoted as saying, adding it would cost 121.74 trillion dong ($4.7 billion) in foregone revenue. Vietnam cut its VAT rate to 8% from 10% in early 2022 to support the economy after the COVID-19 pandemic, and has since extended it a number of times. U.S. President Donald Trump said earlier this year that VAT carried a lot of blame for America's trade deficit. ($1 = 25,951 dong)
Fibre2Fashion
10-05-2025
- Business
- Fibre2Fashion
Vietnam sees strong economic momentum with 39.9% surge in FDI inflows
Vietnam has recorded robust economic growth in the first four months (January-April) of 2025, with foreign direct investment (FDI) inflows reaching approximately $13.82 billion, marking a 39.9 per cent increase year-over-year (YoY). An estimated $6.7 billion in FDI was disbursed during the period, representing a 7.3 per cent YoY increase highlighting continued investor trust in Vietnam's economic prospects, said Vietnamese media reports quoting Minister of Finance Nguyen Van Thang. Vietnam's total trade volume in April was estimated at $74.32 billion. While this represented a slight decline of 1.4 per cent from the previous month, it marked a significant 21.3 per cent YoY increase. Vietnam has recorded strong economic growth in Januaryâ€'April 2025, with FDI inflows reaching $13.82 billion, up 39.9 per cent YoY, and $6.7 billion disbursed. Total trade during the period rose 15.7 per cent YoY to $276.89 billion, despite a 1.4 per cent MoM dip in April. Exports and imports grew by 13 per cent and 18.6 per cent respectively, while industrial production rose 8.4 per cent. Industrial production also grew by 8.9 per cent in April and 8.4 per cent over the January–April period. Meanwhile, exports increased by 13 per cent and imports by 18.6 per cent in the first four months, bringing the total trade value to $276.89 billion during the same period, up 15.7 per cent YoY. Fibre2Fashion News Desk (SG)
The Star
09-05-2025
- Business
- The Star
Vietnam to send largest-ever delegation to 2025 SelectUSA Investment Summit
Minister of Finance Nguyen Van Thang (right) and US Ambassador to Vietnam Marc E. Knapper at their meeting on May 8. — Ministry of Finance HANOI: A Vietnamese delegation will take part in the 2025 SelectUSA Investment Summit, scheduled for May 11-14 in the United States' Maryland, Minister of Finance Nguyen Van Thang told US Ambassador to Vietnam Marc E. Knapper at their meeting in Hanoi on Thursday (May 9). Thang said this is seen as part of key activities aimed at boosting Vietnam-US trade and investment ties. He expressed his appreciation for the strong support from the US Ambassador and the US Embassy in Vietnam in general, in recent times, calling this a clear sign of the growing substance and effectiveness of the Vietnam-US Comprehensive Strategic Partnership. Vietnam is sending its largest-ever delegation to the summit, reflecting growing interest among Vietnamese businesses in the US investment environment and their desire to expand presence in the market, Thang stressed. Apart from joining activities at the summit, the Vietnamese delegates will also meet with US authorities, associations and businesses operating in the fields of semiconductors, high technology, startups, banking, and green and digital finance, he noted. He added that through these engagements, the Vietnamese Government aims to underscore its commitment to advancing bilateral economic and trade ties on the basis of fairness, mutual benefit, and sustainability as the world undergoes sweeping changes in trade policies and the global business environment. For his part, Knapper welcomed the strong Vietnamese presence at the summit, describing this as a strong sign of the growing bilateral ties as the two countries are preparing to celebrate the 30th anniversary of diplomatic relations in 2025. This will be a great opportunity for seeking ways to further deepen the economic and investment cooperation between the two nations, the diplomat said. In recent years, Vietnam and the US have witnessed the fruitful development in their bilateral relationship, especially since they established the Comprehensive Strategic Partnership in 2023. Thang voiced his belief that with Knapper's central role and close coordination among all relevant parties, the two sides will continue to foster an effective, substantive, and long-term economic and trade partnership. — Vietnam News/ANN
