No excise tax on sugary drinks, urges Vietnam beer-beverage association
Citing the vital economic role that the beverage sector plays and the significant contributions it makes to the state budget, the Vietnam Beer-Alcohol-Beverage Association (VBA) has asked that no excise tax be levied on sugary drinks.
In a proposal sent to the National Assembly Standing Committee last Friday, the VBA has also requested that higher taxes on alcoholic beverages (beer, wine, and spirits) be postponed.
The beverage sector is an important part of the economies of many localities and pays VND60 trillion ($2.44 billion) to the state budget yearly, including VND40 trillion in excise tax, the VBA said.
Furthermore, the industry is struggling with reduced output and revenues since 2023, it added.

Sugary drinks at Big C Thang Long supermarket in Hanoi. Photo courtesy of Kinh te Do thi (Urban Economy) newspaper.
The association also mentioned other macro challenges, including changes and draft changes to the legal framework on value-added tax (VAT), advertising, environmental protection and green transition that have pushed business costs higher. Higher taxes would mean higher prices and consumers opting for illegal products.
Tax schedule for beer
The VBA has proposed that the excise tax on beer go up to 70% in 2027-2028, 75% in 2029-2030, and 80% from 2031 onwards. It noted that the excise tax on beer in Vietnam rose from 45% in 2010-2012 to 50% in 2013, 55% in 2016, 60% in 2017, and 65% in 2018.
The latest legal amendment drafted by the Ministry of Finance mentions increasing the tax to 80% in 2026, moving towards 100% in 2030. The ministry has estimated that this would push up retail prices by 20% year-on-year in 2026 and 2-3% per year afterward.
For wine, spirits
For wine and spirits with alcohol by volume (ABV) of at least 20%, the VBA has recommended applying an excise tax at 70% in 2027-2028, 75% in 2029-2030, and 80% from 2031.
The current rate of 65% was set in 2018.
Per the Ministry of Finance’s draft, the excise tax would go up to 80% in 2026, 85% in 2027, 90% in 2028, 95% in 2029 and 100% in 2030. It has calculated that this would raise retail prices by 20% year-on-year in 2026 and 2-3% per year afterward.
On wine and spirits with an ABV of below 20%, the VBA suggested tax rates of 40% in 2027-2028, 45% in 2029-2030, and 50% from 2031, versus the ministry’s plan of 50% in 2026 towards 70% in 2030.
Sugary drinks
For drinks with a sugar content of over five grams per 100 milliliters, the VBA has urged no excise tax, against the ministry’s plan of 10%.
While appreciating the ministry’s goal of reducing obesity and non-communicable diseases (NCDs), the VBA argued that the excise tax has not been proven effective in achieving the target. On the other hand, a possible impact is consumers switching to use “handmade/homemade products,” which are harder to collect tax on and may contain even more sugar.
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