Between 2010 to 2022, Vietnam’s per capita income increased by 203%. Cigarette prices, however, only rose by 56%, making tobacco too affordable and encouraging consumption, Phan Thi Hai, deputy director of the Tobacco Harm Prevention Fund under the Ministry of Health said. She said Vietnam raised smoking taxes three times between 2008 and 2019, but the increases were so small they had no effect on smoking rates.
“Vietnam’s cigarette prices remain among the lowest globally, making them easily accessible, especially to low-income groups and youth,” Hai said. She said even with the country’s 75% “special consumption tax” on tobacco products, a pack of cigarettes with a factory price of 3,900 VND (15 cents) ends up costing the consumer only 10,000 VND (39 cents). She also said in Hanoi and HCM City, there are still about 40 cigarette brands priced below 10,000 VND per pack, some as low as 7,000–8,000 VND (27 to 31 cents).
Hai said to effectively reduce tobacco consumption, Vietnam must reform its tobacco tax policy by implementing a steady tax increase over time. This would ensure that cigarette prices keep pace with income growth and gradually approach the tax level recommended by the WHO. She proposed introducing an absolute tax of at least 5,000 VND (20 cents) per pack by 2026, increasing to 15,000 VND (60 cents) per pack by 2030, which theoretically would help reduce the adult smoking rate to below 36% for men and below 1% for women, consistent with the targets of the National Tobacco Control Strategy by 2030.
Currently, the total tax share in the retail price of cigarettes in Vietnam is only 36%, below the WHO’s recommended 75% and lower than regional peers such as Thailand (78.6%), the Philippines (71.3%), and Singapore (67.5%).
