Consumption tax likely to hurt beverage industry in Vietnam


Bottles of Sabeco's Saigon beer are seen at a restaurant bar in Hanoi, Vietnam December 18, 2017. REUTERS/Kham

HANOI: A draft proposal to increase a special consumption tax on alcoholic beverages may hurt Vietnam beverage industry’s ability to compete on their home turf, putting the entire supply chain at risk, say industry insiders.

Lam Du An, deputy director-general of the Saigon Beer-Alcohol-Beverage Corp, said since 2021, the company’s revenue has decreased by 10%-15% compared with 2019. The company reported a 7% decrease in revenue in 2022 and an 11% decrease in revenue in 2023, with a drop in pre-tax profit of 23%.

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