10% excise tax on sugary drinks may wipe 0.5 ppts off Vietnam GDP: expert
A 10% excise tax on sugary drinks could erase 0.5 percentage points from Vietnam’s GDP, according to an expert.
Imposing an excise tax on sugary drinks would impact around 25 other sectors involved in the manufacturing and distribution supply chain of soft drinks, warned Nguyen Minh Thao, head of the Business Environment and Competitiveness Research Department under the Central Institute for Economic Management (CIEM).
![Sugary drinks aisle at a supermarket. Photo courtesy of Phap Luat TP.HCM (HCMC Law) newspaper.](https://i.ex-cdn.com/theinvestor.vn/files/content/2024/07/20/drink-0958.jpg)
Sugary drinks aisle at a supermarket. Photo courtesy of Phap Luat TP.HCM (HCMC Law) newspaper.
He cited CIEM research as saying that an excise tax could deal a blow to 9,000 small- and medium-sized enterprises and one million household businesses involved in the sugary drink industry.
Additionally, Thao mentioned that it is expected to harm the livelihoods of 337,000 sugar cane farming families. Consequently, he noted that payments to the state budget would drop.
Thao went on to say that there is no profound research indicating sugary drinks are the main cause of overweightness. Therefore, it is necessary to take this issue into account to introduce an appropriate excise tax on sugary drinks.
Do Thai Vuong, head of the soft drink division at the Vietnam Beer-Alcohol-Beverage Association (VBA), cautioned that imposing an excise tax would likely impact foreign investment inflows into Vietnam. He emphasized that as investors require stable policies to make informed investment decisions, an excise tax may discourage foreign investors from entering Vietnam.
At a recent session of the National Assembly, Vietnam’s legislature, the draft amended Excise Tax Law was tabled. According to the roadmap, the government will submit the bill to the parliament for comments for the second time at its next gathering in October. It is expected to be adopted by the legislative body at a session in May 2025.
In the draft, the Ministry of Finance proposed soft drinks with sugar content above 5g/100ml be subject to an excise tax of 10%. The aim is to limit the consumption of sugary beverages and prevent and reduce obesity, as recommended by the Ministry of Health, the World Health Organization, and the United Nations Children's Fund (UNICEF).
- Read More
HCMC decks up in national colors for National Day celebrations
A sea of red flags with the five-pointed yellow star adorned Ho Chi Minh City homes as residents joined their compatriots across the country in celebrating the National Day - September 2.
Society - Sun, September 1, 2024 | 10:39 pm GMT+7
Conglomerate Thaco sees 6% drop in H1 net profit on weak demand
Vietnamese private conglomerate Thaco Group posted VND1.01 trillion ($40.6 million) in net profit in the first half of this year, down 6% year-on-year and equivalent to 37% of the whole-2023 figure, according to its report filed to the Hanoi Stock Exchange.
Companies - Sun, September 1, 2024 | 7:07 pm GMT+7
Vietnam retail majors reap rewards for persistence, perseverance
After years of making losses, the significant investments made by major retailers like Masan Group, Mobile World Investment and FPT Retail are coming good.
Economy - Sun, September 1, 2024 | 3:30 pm GMT+7
Hanoi plans to start work on seventh bridge within inner city this year
Hanoi plans to break ground this year on a VND20 trillion ($802.37 million) project that includes the Tu Lien bridge and a road connecting it to the Hanoi-Thai Nguyen expressway.
Infrastructure - Sun, September 1, 2024 | 1:59 pm GMT+7
AI likely to redefine job roles, create new categories of employment
As AI tools become more integrated into the workplace, the ability to work alongside and leverage these technologies becomes a critical skill, which is likely to redefine job roles and create new categories of employment, writes RMIT senior lecturer Dr Arthur Tang.
Consulting - Sun, September 1, 2024 | 10:30 am GMT+7
Construction major Hoa Binh's H1 net profit revised up by $3.6 mln after audit
Leading Vietnamese contractor Hoa Binh Construction Corporation reported a net profit of VND830 billion ($33.37 million) in the first half of this year, up VND89 billion ($3.6 million) from the pre-audit figure, according to its H1 audited consolidated financial statements.
Companies - Sun, September 1, 2024 | 9:00 am GMT+7
Danang city unveils new incentives for semiconductor sector investments
New policies aimed at attracting investments and developing a semiconductor ecosystem were unveiled at "Danang Semiconductor Day 2024" organized by the central city administration on Friday.
Industries - Sun, September 1, 2024 | 8:00 am GMT+7
Silk village Van Phuc a hub of tourism in Hanoi
Van Phuc silk village in Van Phuc ward, Ha Dong district of Hanoi is one of the most famous craft villages in Vietnam.
Travel - Sat, August 31, 2024 | 8:17 pm GMT+7
EV-maker VinFast gets $132 mln gift from billionaire Vingroup founder
Billionaire Pham Nhat Vuong, founder and chairman of Vietnam’s biggest private conglomerate Vingroup, gifted VND3.27 trillion ($131.7 million) to its EV arm VinFast in the first half of this year.
Companies - Sat, August 31, 2024 | 7:51 pm GMT+7
Eight Vietnam provinces expected to become centrally administered cities by 2030
Eight Vietnamese provinces – Thua Thien Hue, Khanh Hoa, Bac Ninh, Ba Ria-Vung Tau, Quang Ninh, Ninh Binh, Hai Duong and Binh Duong – are expected to become centrally administered cities by 2030.
Economy - Sat, August 31, 2024 | 5:39 pm GMT+7
Legal proceedings launched against 7 citizens for stock market manipulation
Legal proceedings have been launched against 42-year-old Tran Binh Minh and six others for stock market manipulation in the trading of CMS shares of Hanoi-based CMH Vietnam Group JSC.
Society - Sat, August 31, 2024 | 2:05 pm GMT+7
Bank on Vietnamese banks with sustainable growth: broker
Investors can bet on Vietnamese banks that have been allocated higher credit quotas compared to the industry’s average, exhibit sustainable growth, maintain robust capital buffers and possess high asset quality, recommends Agriseco Securities.
Finance - Sat, August 31, 2024 | 10:30 am GMT+7
Vietnam potential for growth promising for 2024, 2025: UOB exec
Vietnam's GDP in 2024 can reach 6% with "upside potential", driven by strong performance across industries like manufacturing, electronics, furniture, and motor vehicles, says Suan Teck Kin, head of research at UOB.
Economy - Sat, August 31, 2024 | 9:30 am GMT+7
Southern Vietnam real estate firms plan new project launches despite market uncertainties
Several developers in Vietnam’s southern region are planning to launch new projects despite experts saying the real estate market outlook for the remainder of this year remains uncertain.
Real Estate - Sat, August 31, 2024 | 8:00 am GMT+7
Indonesia cracks down on fake job vacancies
The Indonesian Ministry of Manpower has taken measures to combat fake information on available job vacancies, including devising a plan to establish the Task Force on the Eradication of Fake Job Advertisement, reported the country’s news agency Antara.
Southeast Asia - Fri, August 30, 2024 | 11:36 pm GMT+7
Thailand's Koh Samui cruise terminal to open by 2032
Caretaker Deputy Minister of Transport Manaporn Charoensri of Thailand has announced that a new cruise terminal in Koh Samui will open in 2032 as part of efforts to boost tourism in Surat Thani province.
Southeast Asia - Fri, August 30, 2024 | 11:33 pm GMT+7