Hanoi (VNA) – The World Health Organisation (WHO) in Vietnam on September 26 released new model findings showing significant health and economic gains from the country’s recent tobacco tax reform.
According to the WHO’s TaXSim simulation model, the tax measures adopted under the amended Law on Special Consumption Tax, to take effect in June 2025, are projected to help 2.1 million people in Vietnam quit or avoid smoking by 2030. By reducing access to cheap cigarette brands, particularly among young people, it will prevent 700,000 premature deaths, generate an additional 24 trillion VND (approximately 910 million USD) in annual government revenue by 2031.
The findings were released as the WHO called for stronger action to address the world’s leading causes of death, including cancer, stroke and heart disease, at the Fourth UN General Assembly High-level Meeting on the Prevention and Control of Noncommunicable Diseases (NCDs) and Mental Health taking place this week.
Speaking at a side event of the Assembly, WHO Director-General Dr. Tedros Adhanom Ghebreyesus emphasised that health taxes are a win–win solution for both people and economies, helping prevent disease and save lives by curbing consumption of harmful products, while generating billions in revenue that governments can reinvest in health and development.
“In the past decade, about one-quarter of WHO member states have raised tobacco taxes to increase real prices by at least 50%, he said, expressing appreciation to all those committed to implementing smarter and fairer tax policies that protect public health, strengthen domestic financing, and accelerate progress towards the Sustainable Development Goals.
Tedros also sent a congratulatory message to Vietnam earlier this year, praising the country’s landmark decision to reform its tobacco taxation system.
Dr. Angela Pratt, WHO Representative in Vietnam, commended the government’s bold and visionary decision, calling the tobacco tax reform a crucial step in reducing the still-high smoking rate, particularly among men, and in protecting future generations from the harms of tobacco. She noted that Vietnam’s pioneering action serves as an inspiring example for other nations seeking to minimise the negative impact of tobacco use.
In June, the National Assembly of Vietnam approved key reforms to the tobacco tax system, introducing a specific excise tax alongside the existing ad valorem tax (based on product value), and establishing a roadmap for annual tax increases from 2027 to 2031. These reforms aim not only to raise tobacco taxes but also to ensure a sustained reduction in tobacco consumption over time.
Earlier this year, Vietnam also agreed to raise taxes on alcoholic beverages and to introduce taxes on sugar-sweetened drinks.
Pratt applauded Vietnam’s strong leadership and commitment to public health. This year, Vietnam has made transformative decisions that will save lives, reduce healthcare costs, and strengthen the economy. Importantly, these measures will benefit young people by making tobacco products less affordable, thereby protecting future generations from lifelong addiction, she said.
She further highlighted Vietnam’s earlier decision to ban e-cigarettes and heated tobacco products, describing it as a powerful complement to the tax reforms.
These two decisive actions, the ban on e-cigarettes and heated tobacco products, and the tobacco tax reform, will leave a lasting legacy of healthier individuals, stronger families, and safer communities for generations to come, she affirmed./.
