Vietnam approves 90% alcohol tax hike
The National Assembly of Vietnam has approved a proposal to increase tax on alcohol to 90% by 2031, up from the current rate of 65%.
The Vietnamese parliament has consistently increased the tax on alcohol in recent years. For instance, the tax rose from 55% in January 2016 to 65% in January 2018 for beverages with an ABV of more than 20% and for beer. Beverages with an ABV under 20% are currently subject to an excise tax, also known as a special consumption tax (SCT), of 35%.
Last year, a proposal was put forward to raise the tax on beer and alcohol with an ABV over 20% to 100%, and the tax on alcohol with an ABV below 20% to 70% by 2030.
On 14 June 2025, the National Assembly of Vietnam approved a proposal to raise the excise tax for alcohol with more than 20% ABV and beer to 90% by 2031 under the SCT.
The country has also approved a tax on sugary drinks for the first time. A new levy of 8% will be applied to sugary beverages containing more than 5g of sugar per 100ml, starting in 2027. This tax will increase to 10% in 2028.
Under the new legislation, the tax rate on beer and strong liquor will increase to 70% by 2027, a year later than initially proposed, before reaching 90% in 2031.
The decision is expected to increase challenges for the industry, despite the top rate being lower than initially suggested.
According to the minister of finance, Nguyễn Văn Thắng, the higher taxes aim to curb alcohol consumption to protect the future of Vietnamese youth and community health.
The head of the country’s Beer and Alcoholic Beverage Association has stated that industry revenue has declined for the last three years.
WHO response
On 14 June, Dr Angela Pratt, World Health Organization (WHO) representative in Vietnam congratulated the passing of the proposal, claiming that it would “improve population health”.
Pratt said: “WHO is very pleased that law makers have seized this opportunity to achieve a ‘win-win’ of reducing the consumption of tobacco, alcohol, and sugary drinks – and therefore reducing harm and health costs for decades to come – while generating additional revenue for key government priorities.”
According to the WHO, the vote represents a significant advancement that will help Vietnam meet its national and international goals to reduce alcohol consumption.
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