The Vietnamese government is reportedly mooting raising a consumption tax on alcoholic beverages to 100% by 2030.
The tax, applied to a range of luxury goods and non-essential items, is currently 65% and affects beer and strong liquor, according to a report by Reuters.
A proposal, which is in draft stages, by the ministry of finance suggests raising this to 70%-80% by 2026 and 90%-100% by 2030.
In the proposal, seen by Reuters, the ministry said: “Alcoholic drinks and beer prices will increase by 20% in 2026, compared with 2025”, and added that prices would continue to increase by 2%-3%, depending on inflation.
“Levying high tax rates is necessary to help reduce consumption of alcoholic drinks,” it added.
Major players in Vietnam's beer industry include Dutch brewing giant Heineken, which produces its namesake beer as well as local brand Bia Viet, Tiger, Larue, Sol, Affligem and Strongbow.
Last year, Heineken noted beer-sales-volume declines in Vietnam in its third-quarter results, citing “economic slowdown”.
It said inflationary pressures had “disproportionately” affected its premium-beer volumes in the country. Vietnam was cited as one of Heineken’s premium-beer segment “strongholds”.
While not disclosing the exact number, the Amstel brewer said beer volumes in Vietnam declined by a mid-teens percentage in the period. In total, beer volume for the quarter declined organically by 4.2%.
CFO Harold van den Broek said he was seeing signs Vietnam was “starting to rebalance” but did not anticipate a snap back.
Other key players in Vietnam include Carlsberg, Bia Saigon brand owner Sabeco and Habeco, which produces Hanoi and Truc Bach.
Just Drinks has contacted brewers about the proposals.
