MINISTRIES PROTEST SPECIAL CONSUMPTION TAX ON SOFT DRINKS

Numerous ministries and associations protested against the Ministry of Finance (MoF)’s proposal to apply a special consumption tax (SCT) of 10-20 per cent on soft drinks.

According to newswire Vnexpress, in a document sent to MoF to contribute an opinion related the adjustment and addition of the SCT, the Ministry of Industry and Trade (MoIT) stated that citing soft drinks’ impact on health is not convincing enough to apply the SCT.

Besides, mentioning tea and coffee products that contain no added sugar in the soft-drink group makes MoF’s definition inconsistent. Thus, MoIT asked MoF to clarify the reasons for the application of SCT on soft drinks as well as the reason for issuing a quota on these products.

The Ministry of Agriculture and Rural Development (MARD) also disagreed with MoF’s proposal. The ministry stated that there has yet to be an official study showing that sugar drinks, including instant tea and coffee, causs obesity and diabetes in Vietnam, especially among children.

As Vietnam is stimulating the development of the agricultural product processing industry, MARD also asked MoF to clarify the definition of soft drinks, and simultaneously proposed to remove instant tea and coffee from the subjects to the SCT.

The Ministry of Planning and Investment proposed MoF to study the impact of this policy on the beverage sector, the state budget, and other factors, including jobs and production facilities.

According to the Association of Tea of Vietnam, mentioning instant tea on the list will impact the operation of tea manufacturing firms as well as tea growing households.

Associate Prof. and PhD Ngo Tri Long proposed that the calculation of the SCT needs to be based on the percentage of sugar content in each soft drink product.

Responding to the above opinions, MoF quoted a report from WHO, which shows that consuming too many drinks containing added sugar will have a negative impact on health.

WHO also stated that 40 countries currently apply SCT on soft drinks. Besides, three countries in the ASEAN, namely Myanmar, the Philippines, and Indonesia, are also considering applying SCT on soft drinks.

According to the calculations of MoF, applying the SCT of 10 per cent on soft drinks from 2019 will contribute over VND5 trillion ($220.2 million) to the state budget per year.

This is not the first time that MoF’s proposal has received objections. In February 2014, government agencies and beverage companies, and most notably, foreign beverage producers in Vietnam showed pronounced opposition to MoF’s proposal from the moment it made headlines.

Finally, in August 2014, MoF decided to withdraw its proposal.

Source: VIR

Related News

INFRASTRUCTURE / CONSTRUCTION / LOGISTIC / PORT

VIETNAM EXPANDS INLAND CONTAINER DEPOT NETWORK TO 19

The two newly added ICDs are Cai Mep in HCMC and Tan Cang-Moc Bai (phase one) in Tay Ninh Province. Cai Mep ICD, located in Cai Mep Industrial Park in Tan Phuoc Ward, HCMC and developed by Cai Mep International Logistics JSC, covers 9.15 hectares and has an annual handling capacity of about 133,000 TEUs, according to the Government news site (baochinhphu.vn).

Apr 09, 2026

BANKING / FINANCE / INSURANCE / TAX

HCMC CREDIT UP 1.5% IN Q1

Outstanding loans in the city reached an estimated VND5.28 quadrillion, up 0.77% from the previous month and 16.25% year-on-year, data from the State Bank of Vietnam’s Regional Branch 2 showed. Vietnam dong loans accounted for 96.1% of total credit and rose 1.46% from the end of 2025. Medium- and long-term lending made up 55% of total outstanding loans and increased 3.22%.

Apr 09, 2026

VIETNAM ECONOMY INVESTMENT

HCMC TO ESTABLISH CULTURAL INDUSTRY DEVELOPMENT FUND

The HCMC People’s Committee has tasked relevant departments with establishing a cultural industry development fund and developing a 150-hectare film studio complex. The move follows an instruction by HCMC Party Committee Secretary Tran Luu Quang. The city’s cultural industry development fund will be structured under a venture capital model.

Apr 09, 2026

HR / LABOUR/ EMPLOYMENT

EMPLOYEES’ AVERAGE INCOME INCREASES

Average monthly income of workers in the first quarter reached VND9 million, up 3.8% from the previous quarter and 8.5% from a year earlier, according to the National Statistics Office. Male workers earned an average of VND10.1 million per month, compared with VND7.7 million for female workers. In urban areas, average income reached VND10.7 million per month, while in rural areas it was VND7.9 million.

Apr 09, 2026

INFRASTRUCTURE / CONSTRUCTION / LOGISTIC / PORT

HCMC KICKS OFF OVER 10 PROJECTS DURING APRIL

Work will start on major projects in transportation, urban development and logistics sectors in HCMC this month, coinciding with Vietnam’s Reunification Day, April 30. They include the N3 ramp at the An Phu interchange with an investment of VND3.4 trillion and the 1.69-hectare Tan Chanh Hiep Park. In addition to these, seven other projects are slated to break ground within the month, including the Ho Tram – Long Thanh airport urban expressway, the Nha Rong – Khanh Hoi port area and the Ho Chi Minh Museum expansion.

Apr 09, 2026

HOSPITALITY / TOURISM / ENTERTAINMENT

VIETNAM’S Q1 FOREIGN TOURIST ARRIVALS HIT RECORD HIGH

Vietnam welcomed nearly 2.1 million international visitors in March, bringing first quarter foreign tourist arrivals to 6.76 million, up 12.4% year-on-year and marking a record high for the period, the national authority for tourism said. Air travel accounted for 82.3% of international arrivals, followed by land at 15.5% and sea at 2.2%, according to the Vietnam National Authority of Tourism.

Apr 09, 2026