Excise tax on sugary drinks not an optimal solution: int'l experience
International experience indicates that imposing an excise tax on sugary drinks is not an optimal solution to control and reduce obesity, experts said at a Friday workshop in Hanoi.
The event was hosted by the Vietnam's Association of Foreign Invested Enterprises (VAFIE), The Investor, and Dai bieu Nhan dan (People’s Representative) newspaper under the National Assembly Office.
The National Assembly, Vietnam’s highest legislative body, will discuss the draft amended excise tax law at its plenum next month and conduct an approval vote at the gathering in May 2025.
In the latest draft, the Ministry of Finance proposes an excise tax of 10% on sugary drinks as part of efforts to fight rising obesity in the country.
Nguyen Ngoc Yen, a lecturer at the Hanoi Law University, noted that there is no data proving the effectiveness of imposing an excise tax on sugary drinks in reducing obesity.
In fact, some countries like India, Thailand, Chile, Mexico, Belgium, Finland, and the Philippines that have implemented this measure have obesity rates go up even higher.
Other countries including Norway, Denmark and some states within the United States have abolished the excise tax on sugary drinks after finding it ineffective. Meanwhile, countries like Singapore, Germany and Japan have seen success in controlling obesity by promoting a healthy lifestyle and physical exercises.
International experience shows that excise tax against sugary drinks is not a suitable solution to reduce obesity and non-communicable diseases, Yen reiterated.
She called on authorities to consider other options.
Can Van Luc, chief economist with state-controlled BIDV bank, said 108 out of 192 nations have imposed an excise tax on sugary drinks (sugary tax), starting with Brazil in 1965 and Russia as the latest one in 2023.
In 2016-2024, 47 more countries began applying sugary tax as a fiscal policy to boost healthcare. In the Asean bloc, Laos, Brunei, Thailand, the Philippines, and Malaysia are implementing the tax.
However, the effectiveness of the tax in reducing obesity is questionable, Luc said, citing data from the World Obesity Federation as showing 21 countries with sugary tax recorded higher obesity ratios in the 2016-2024 period.
On the other hand, Japan has recorded a stable obesity ratio of 4.3% in the same period without resorting to the sugary tax, he pointed out.
This tax is easily avoidable, Luc said, adding that sugary drinks are only one of nine obesity-causing factors. He proposed a comprehensive solution to improve obesity awareness, instead of using a sugary tax.
- Read More
Minh Ngoc Steel: A 'quiet' major player in hydroelectric sector
Minh Ngoc Producing and Trading Co., Ltd. (Minh Ngoc Steel), founded by entrepreneur Dong Tuan Vu, has quietly made its mark on the hydroelectric sector, in addition to establishing itself as a key player in the steel industry.
Companies - Mon, December 9, 2024 | 5:14 pm GMT+7
Greenwell Energy Canada seeks to supply LNG for Vietnam
Greenwell Energy (Canada), under the United States-based Greenwell Energy, plans to build an LNG terminal in Vietnam’s central province of Thanh Hoa to supply LNG in the country.
Energy - Mon, December 9, 2024 | 4:21 pm GMT+7
Amkor Technology’s $1.6 bln project in Vietnam needs 2,800 workers
The $1.6 billion project of U.S.-headquartered semiconductor giant Amkor Technology in Vietnam is set to have a labor demand of 2,800 during stable operations, according to a recent project report.
Companies - Mon, December 9, 2024 | 3:30 pm GMT+7
Revenues of LG Electronics’ Vietnam factories up 24% to $6 bln in Jan-Sept
LG Electronics’ factories in Vietnam, LG Innotek Vietnam Hai Phong and LG Electronics Vietnam Hai Phong, recorded a total revenue of KRW8,532 billion ($6.02 billion) in the first nine months of 2024, up 24% year-on-year.
Companies - Mon, December 9, 2024 | 10:55 am GMT+7
Leading Vietnamese insurer Bao Minh lowers profit, dividend targets due to typhoon
Vietnam’s Bao Minh Insurance Corporation has revised its profit and dividend targets for 2024 following the increased compensation costs stemming from super typhoon Yagi, which severely impacted the northern region.
Finance - Mon, December 9, 2024 | 10:29 am GMT+7
Foreign capital flow key indicator for Vietnam stock market: expert
Foreign net buying/selling in the coming period will be a crucial indicator for Vietnam’s benchmark VN-Index, as foreign investors play a significant role in shaping market sentiment, according to Yuanta Vietnam Securities JSC's chief analyst.
Finance - Mon, December 9, 2024 | 9:38 am GMT+7
Vietnam's rice exports reach a record high
Vietnam’s rice exports achieved a record-breaking $5.3 billion revenue in the first 11 months of the year, up 22.4% year-on-year and 10.8% against the whole 2023.
Economy - Mon, December 9, 2024 | 8:00 am GMT+7
Southernmost Ca Mau province moves to better tap eco-tourism strengths
The Ca Mau World Biosphere Reserve, which includes the Ca Mau National Park, the U Minh Ha National Park, and the coastal protective forests, not only offers substantial economic benefits but also provides a clean environment that can provide many attractive ecological tourism experiences for visitors.
Travel - Sun, December 8, 2024 | 8:16 pm GMT+7
Vietnamese firms face numerous barriers in green transformation
Enterprises require significant capital to invest in machinery and production processes to embrace green transformation, says Nguyen Quoc Anh, chairman of the Ho Chi Minh City Rubber-Plastic Association.
Companies - Sun, December 8, 2024 | 8:06 pm GMT+7
Vietnamese carmaker VinFast starts work on fifth EV plant project
Vietnamese startup automaker VinFast on Sunday kicked off an electric vehicle (EV) plant project in the central province of Ha Tinh - its second in Vietnam and fifth globally.
Industries - Sun, December 8, 2024 | 4:00 pm GMT+7
Vietnam poised to achieve 15% credit growth target: central bank
Vietnam is on track to meet its 2024 credit growth target of 15%, with credit expansion reaching 12.5% as of Saturday, according to Dao Minh Tu, State Bank of Vietnam (SBV) Deputy Governor.
Economy - Sun, December 8, 2024 | 10:42 am GMT+7
Thailand loosens EV production regulations
Thailand’s Board of Investment (BoI) has announced that the government would extend deadlines for electric vehicle (EV) manufacturers to meet domestic production quotas, addressing weak local market demand.
Southeast Asia - Sun, December 8, 2024 | 10:09 am GMT+7
Vietnam's state capital management 'super commission' to cease operation
Vietnam's Commission for the Management of State Capital at Enterprises (CMSC) will end its operations soon and transfer the management of 19 state-owned groups and corporations back to relevant ministries.
Economy - Sun, December 8, 2024 | 9:53 am GMT+7
Vietnam mining firm Nui Phao appoints new general director
Ashley McAleese has been appointed general director of Nui Phao Mining Company, a subsidiary of Masan Group, effective from January 1, 2025.
Companies - Sun, December 8, 2024 | 9:09 am GMT+7
Vietnam stock market may secure upgrade in Sept next year: broker
Vietnam’s stock market could achieve an upgrade to emerging market status as early as September next year, forecast Vietcap Securities.
Finance - Sun, December 8, 2024 | 8:00 am GMT+7
Taiwan’s top rubber firm TSRC to shut down southern Vietnam plant
TSRC, formerly known as Taiwan Synthetic Rubber Corp., will cease all production activities at its compounding materials plant in Vietnam’s southern province of Binh Duong by the end of this year.
Investing - Sat, December 7, 2024 | 10:35 pm GMT+7