世界发展银行-Vietnam-_-Overview-of-Tobacco-Control-Legislation,-Use-and-Taxation_33页_641kb

Summary of Vietnam's Tobacco Control Legislation, Use, and Taxation

Core Content

This document provides an overview of Vietnam's tobacco control legislation, smoking prevalence, economic costs of smoking, tobacco production, and taxation policies. It is part of the World Bank Group's Global Tobacco Control Program and aims to inform complementary assessments on tobacco taxation in the country.

Main Points

Tobacco Control Legislation

• Vietnam ratified the WHO Framework Convention on Tobacco Control (FCTC) in 2005 and enacted the Law on Prevention and Control of Tobacco Harms in 2012, which took effect on May 1, 2013.
• Key provisions include:
  • Establishment of smoke-free zones in health facilities, educational institutions, childcare areas, and public transport.
  • Graphic health warnings on cigarette packaging covering 50% of the front and back, with a requirement for rotation every two years.
  • Ban on tobacco advertising, promotion, and sponsorship, except for point-of-sale displays.
  • Creation of the Vietnam Tobacco Control Fund to support tobacco control initiatives.

Tobacco Use Trends

• Male smoking prevalence is high, historically reaching 72.8% in the 1990s, but has declined to 45.3% in 2015.
• Female smoking prevalence is low, around 1.1% in 2015, but exposure to second-hand smoke remains significant.
• Youth smoking (ages 15-24) is also a concern, with 31.6% of males and 0.3% of females smoking in 2001.
• Adolescent smoking has shown a decline from 2003 to 2014, with 4.9% of male and 0.2% of female students reporting cigarette smoking in 2014.
• Waterpipe smoking is more prevalent among rural men and those aged 45-64, with a 6.7% overall prevalence in 2015.
• Smokeless tobacco use is reported at 0.3% for males and 2.3% for females in 2010, with minimal change by 2015.

Economic Costs of Smoking

• In 2005, the total cost of tobacco-related diseases was $77.5 million, representing 0.22% of GDP and 4.3% of healthcare expenditure.
• In 2011, the economic cost of five tobacco-related diseases was $1.17 billion, with 49.5% of the total cost attributed to indirect costs (productivity loss).
• The government finances 51% of these costs, while households and insurance cover the remaining.

Tobacco Production and Sales

• Cigarette production in Vietnam increased from 2 billion packs in the late 1990s to over 5 billion packs in recent years.
• Legal sales are lower than turnover, with a reported gap of 10-20 billion packs annually, suggesting significant smuggling.
• Smuggling remains a challenge despite increased production, and the government is advised to take action to curb it.

Tobacco Taxation

• Vietnam uses an exclusively ad valorem taxation system, which makes cigarettes affordable and contributes to high consumption.
• Cigarette prices are among the lowest in the world, with a 20-pack costing less than $1 for popular brands and as low as $0.15-0.20 for economy brands.
• The proposed tax reform includes introducing a specific excise tax alongside ad valorem taxes to increase prices uniformly across all brands.
• The initial specific excise should be at least 2,000 VND per pack (about $0.09) to make cigarettes less affordable, with annual increases of at least 2,000 VND for five years.
• The ad valorem tax rates should not be reduced, as this would undermine the goal of reducing affordability and consumption.

Recommendations

• Introduce a specific excise tax to increase cigarette prices uniformly and reduce consumption.
• Increase tax rates faster than inflation to ensure affordability reduction over time.
• Improve data collection and transparency on tobacco production, sales, and prices.
• Ratify the FCTC Protocol to Eliminate Illicit Trade in Tobacco Products.
• Enhance surveillance using surveys like DHS and MICS to monitor tobacco use and its economic impact.

Key Information

• Smoking is more common among men, especially in rural areas and among lower-income groups.
• Second-hand smoke exposure is a major public health issue, affecting women and children.
• Tobacco control efforts are hindered by the state ownership of the tobacco industry, which conflicts with public health goals.
• Tobacco taxation is a key tool for reducing consumption and improving public health, but current policies are not effective due to low tax rates and lack of transparency.
• Illicit sales remain a challenge, with smuggling volumes possibly overestimated by the industry.

Conclusion

Vietnam has made progress in tobacco control legislation but faces significant challenges in reducing smoking prevalence due to the affordability of cigarettes and the influence of the state-owned tobacco industry. A mixed taxation system with specific excise taxes is recommended to align with FCTC guidelines and improve public health outcomes. Strengthening data collection, surveillance, and policy implementation is essential for the success of tobacco control measures.