The World Health Organization (WHO) Viet Nam Country Office has released the results of new modelling revealing the significant health and economic benefits of the country’s recent tobacco tax reforms.
WHO’s tax simulation model, TaXSim, projects that the reforms agreed in June 2025 will help 2.1 million people in Viet Nam quit or avoid smoking by 2031; prevent 700,000 premature deaths over the coming decades; generate VND 24,000 billion (US$ 910 million) in additional annual Government revenue by 2031; and reduce access to low-cost cigarette brands, especially among youth.
The data has been released as WHO calls for ambitious action to reduce the world’s leading causes of death – including cancer, stroke and heart disease - at the Fourth High Level Meeting of the United Nations General Assembly (UNGA) on the Prevention and Control of NCDs this week.
At a UNGA side event, WHO Director General Dr Tedros Adhanom Ghebreyesus said, “Health taxes are a win-win for people and economies: they help to prevent disease and save lives by reducing consumption of harmful products; and they can generate billions in revenue that countries can reinvest in health and development.
“Over the last decade, about a quarter of WHO Member States raised tobacco taxes, effectively increasing cigarette prices by at least 50%. Thanks to all of you who have committed to smarter, fairer taxation that safeguards public health, strengthens domestic financing and accelerates progress toward the Sustainable Development Goals.”
In June, Dr Tedros congratulated Viet Nam on its milestone reforms to tobacco tax.
WHO Representative in Viet Nam Dr Angela Pratt said, “Viet Nam’s recent and decisive action to reform tobacco taxation is a critical measure to lower the country’s high smoking rates—particularly among men—and to safeguard future generations from tobacco-related harm.
“Viet Nam’s leadership is a powerful example for other countries seeking to reduce preventable harm from smoking.”
WHO Regional Director for the Western Pacific Dr Saia Ma'u Piukala recently presented Minister Dao Hong Lan with a global WHO award to honour her achievements in combatting tobacco harm. Photo: WHO Viet Nam
In June 2025, Viet Nam’s National Assembly significant reforms to the tobacco tax system: a new specific excise tax to complement the existing ad valorem tax (based on product value), along with scheduled annual tax increases from 2027 to 2031. These reforms are designed not only to raise tobacco taxes but also to ensure their effectiveness in reducing tobacco consumption is sustained over time.
Also this year, Viet Nam agreed to raise alcohol tax and introduce a tax on sugary drinks.
Pivotal to the success of the tobacco tax reforms was the strong leadership of the Minister of Finance, Nguyen Van Thang, the Minister of Health, Dao Hong Lan, and the significant efforts of the Department of the Tax Policies, Fees and Charges Supervisory Authority at the Ministry of Finance; the Department of Legislation at the Ministry of Health; the Viet Nam National Tobacco Control Fund; the Health Strategy and Policy Institute under the Ministry of Health; and other key local and international public health partners.
Dr Pratt praised the country’s leadership and commitment to public health.
“This year, Viet Nam made bold, transformative decisions that will save lives, reduce health care costs and strengthen the economy. It will particularly benefit young people, by making tobacco less affordable, and thus protect the next generation from a lifetime of addiction,” said Dr Pratt.
Dr Pratt also highlighted Viet Nam’s earlier decision to ban e-cigarettes and heated tobacco products, describing it as a powerful complement to the tax reforms.
“Together, the ban and the tax reforms will leave a lasting legacy of healthier individuals, stronger families, and safer communities for generations to come,” she said.