On May 9, 2025, during a discussion regarding the draft revised Law on Special Consumption Tax, National Assembly Representative Le Hoang Anh expressed his concerns about the increasing consumption of sugary drinks in Vietnam and the potential health implications associated with it. He argued against the proposal to reduce the special consumption tax (TTĐB) on soft drinks with a sugar content above 5g/100ml from 10% to 8% starting in 2027, with an increase to 10% in 2028. He emphasized that delaying tax implementation and lowering the tax rate contradicts the objectives of the draft law and the directives issued by General Secretary To Lam.
Representative Le Hoang Anh highlighted that a 10% tax would only impact growth under ideal conditions, while Vietnam is currently grappling with a silent epidemic of non-communicable diseases. He pointed out that over 21 million adults in Vietnam suffer from cardiovascular diseases, accounting for nearly a quarter of the population, with 200,000 deaths annually attributed to this issue. Furthermore, more than 5 million Vietnamese individuals live with diabetes, and approximately 40% of urban children are either overweight or obese.
As of 2024, Vietnam has over 360,000 people diagnosed with cancer, with about 180,000 new cases each year, resulting in over 120,000 fatalities. The cancer mortality rate stands at over 73.5%, significantly higher than the global average. The alarming rise in soft drink consumption in Vietnam—from 1.59 billion liters in 2009 to 6.67 billion liters in 2023, representing a staggering increase of 420%—is a cause for concern.
Le Hoang Anh noted that the issue of sugary drink consumption is not merely a tax policy matter but also a strategic choice for responsible nations. He referenced other countries in the region that have implemented strong tax policies on sugary beverages. For instance, Thailand introduced a tax on sugary drinks in 2017, leading to a decrease in consumption. The Philippines and Malaysia have successfully collected billions of dollars in taxes from these beverages while simultaneously reducing disease rates. Brunei also imposes higher taxes on sugary drinks than Vietnam.
"If we do not take action today, we will pay the price with our healthcare budget tomorrow," Le Hoang Anh warned, advocating for maintaining the tax rate at 10% without postponing the implementation until 2026. He stressed that this issue transcends mere taxation; it reflects ethical considerations. Behind every appealing product lies a potential health crisis and environmental consequences. He urged that this policy should not aim to prohibit consumption but rather to motivate responsible choices.
Additionally, Representative Ta Van Ha, Deputy Chairman of the Committee for Culture and Society, acknowledged the necessity of regulations to limit products that affect public health, particularly for children. However, he emphasized the need for thorough evaluation when introducing such regulations. He remarked that while the intention to create such a policy is commendable, it is essential to ensure it is backed by legal, scientific, and practical foundations.
The Minister of Finance, Nguyen Van Thang, reinforced the argument for implementing the TTĐB tax on sugary drinks, citing recommendations from the World Health Organization (WHO) aimed at reducing consumption. He noted that reports from the Ministry of Health also support the necessity of this policy. Minister Thang provided data showing that six ASEAN countries have already enacted similar taxes on sugary beverages.
Meanwhile, during the same session, discussions also revolved around the special consumption tax on air conditioners. Some National Assembly delegates proposed that the threshold for imposing this tax should be raised from 18,000 BTU to 24,000 BTU. The National Assembly Standing Committee agreed with the Government's proposal to revise the draft law, stipulating that air conditioners with a capacity above 18,000 BTU to 90,000 BTU would be subject to the special consumption tax. Air conditioners with a capacity less than 18,000 BTU and those above 90,000 BTU would be exempt from this tax.
Delegate Duong Khac Mai from Dak Nong suggested that air conditioners should only be taxed if they exceed 24,000 BTU, as many households use a single unit to cool multiple rooms, leading to cost savings. He argued that this adjustment would not only benefit consumers but also align with energy-saving practices.
Delegate Nguyen Minh Tam from Quang Binh pointed out that air conditioners below 18,000 BTU are primarily used in households, while larger units are common in schools and hospitals, which should be prioritized for tax exemptions. Delegate Phan Thi My Dung from Long An echoed this sentiment, advocating for policies that exempt or reduce taxes on energy-efficient air conditioners to encourage their use and mitigate environmental impacts.
Delegate Nguyen Huu Thong from Binh Thuan emphasized that the regulation of air conditioners above 18,000 BTU aims to promote energy efficiency and align with national energy policies. However, he acknowledged that this could adversely affect institutions such as schools and hospitals that rely on larger units and suggested considering tax exemptions for these facilities.
Delegate Mai Van Hai from Thanh Hoa argued against imposing special consumption tax on household air conditioners, stating that they have become essential and are no longer luxury items. He warned that such a tax could hinder domestic manufacturers' competitiveness against imported products, raising costs for consumers and organizations that require larger units for effective cooling.
Several delegates concurred that air conditioners are now a necessity for both urban and rural populations, especially amid rising temperatures due to climate change. They noted that while the special consumption tax is intended to limit consumption, it does not effectively reduce demand, as people still need to use air conditioning for their health and comfort.
In response to these discussions, Minister Nguyen Van Thang pointed out that some countries have already implemented special consumption taxes on air conditioners to encourage energy savings and mitigate environmental damage caused by refrigerants. He referenced the Prime Minister's Decision 496/QD-TTg, which outlines a national plan to manage and eliminate ozone-depleting substances by 2045, highlighting the importance of addressing the environmental impact of air conditioning units.
As the discussions concluded, Deputy Chairman Nguyen Duc Hai stated that the Standing Committee would take into account the opinions expressed by the delegates to refine and finalize the draft law for the National Assembly's consideration.
