Tax roadmap adjustment urged to protect investment confidence
Tax roadmap adjustment urged to protect investment confidence
Citing unpredictable global tariff developments and mounting pressure on Vietnam’s investment environment, the Vietnam Beer – Alcohol – Beverage Association (VBA) has called on the government to reconsider the timeline for raising the special consumption tax (SCT).
The beverage sector contributes approximately VND60 trillion ($2.45 billion) annually to the state budget and generates millions of jobs across the supply chain |
In a document submitted to the prime minister and relevant ministries on April 4, the VBA stressed the need to maintain an attractive investment climate as a buffer against external shocks. The association warned that abrupt policy changes risk undermining investor sentiment, particularly in sectors with high levels of foreign direct investment (FDI).
The proposal follows an announcement by US President Donald Trump of steep reciprocal tariffs on Vietnamese goods, a move that could significantly affect exports and investment competitiveness. The VBA noted that in such a volatile global context, stability and predictability in domestic policy–especially taxation–are essential to preserve investor confidence.
The beverage sector has long been a pillar of Vietnam’s economy, with international firms such as Heineken, Sabeco, Carlsberg, and Coca-Cola operating extensive supply chains in the country. According to the VBA, member companies contribute around VND60 trillion ($2.45 billion) annually to the state budget and support millions of jobs across logistics, tourism, food services, and retail.
The association cautioned that accelerating SCT increases during a fragile economic period may constrain domestic consumption, slow production recovery, and erode long-term industry viability. The VBA instead advocates a more flexible, phased-in tax schedule to help businesses navigate current headwinds while continuing to support national growth objectives.
Echoing this view, several economists have urged the government to reconsider the timing and intensity of tax reform. Nguyen Minh Duc, an economist at the Vietnam Chamber of Commerce and Industry and a member of the US-ASEAN Business Council, proposed delaying the SCT on sugary beverages until January 1, 2028, starting at a modest 5 per cent rate.
The US-ASEAN Business Council also raised concerns that abrupt tax hikes could weaken consumer demand, disrupt supply chains, and deter investment–undermining Vietnam’s target of exceeding 8 per cent GDP growth in 2025 and achieving double-digit growth in the years ahead, as outlined in Resolution No.192/2025/QH15.
Amid rising global uncertainties and trade-related risks, the VBA underscored the need for carefully calibrated tax policies that support business resilience and reinforce Vietnam’s competitiveness as a long-term investment destination.
- 10:03 07/04/2025
