Vietnam

Total population in Vietnam was 95.5 million in 2018.[1] The tobacco industry is controlled by the government and is 100% state-owned under the Vietnam National Tobacco Corporation (VINATABA), which also serves as the main domestic producer of tobacco. 

Smoking Prevalence

The Vietnam Global Adult Tobacco Survey 2015 found that the prevalence of smoking in Vietnam was 22.5% overall, 45.3% among men, and 1.1% among women. The following pie chart presents types of tobacco products consumed by current smokers.[2]  

Figure 1: Types of tobacco products consumed by current smokers on a daily basis

Cigarette Retail Price

In 2017, the World Bank positioned a premium brand together with 555 at VND29,000 per pack, a midmarket brand including Vinataba at VND20,000, an economy brand, such as Thang Long at VND8,000.[3]

Tobacco Farming

According to the Food and Agriculture Organization (FAO) database, the land area harvested for tobacco in Vietnam has increased from 11,000 hectares in 1961 to 31,484 hectares in 2010, but has since reduced to 14,204 hectares in 2017. Raw tobacco production has increased from 10,000-15,000 tons annually in the 1960s and 1970s to 56,530 tons in 2010, but has declined to 32,065 tons in 2017.[4]

Tobacco Leaf Production

According to Food and Agriculture Organization (FAO)[5] the information of tobacco leaf production in Vietnam in 2018 as presented in the table below;

ElementValue
Area harvested13,463.00 ha
Yield23,353.00Fc hg/ha
Production31,440.00 tonnes

FC: Calculated data

Who Dominates the Market?

As of 2018, VINATABA leads the cigarette market with a market share 60.5%, followed by BAT Vietnam (23%), Imperial Tobacco (8%), and PMI (3.5%). JTI and all other companies had a combined share of 5% in 2018.[6]

Roadmap to Tobacco Control

In December 2004, Vietnam ratified the World Health Organization Framework Convention on Tobacco Control (WHO FCTC).[7] Since then, the government has enforced more domestic legislation by enacting the Law on Prevention and Control of Tobacco Harms in 2012[8] with specific measures to manage, monitor and inspect the production, importation, distribution and sale-purchase of tobacco products as well as to designate and enforce smoke-free areas in some settings such as public places and indoor working areas. However, Vietnam’s first tobacco control efforts began in 1989 with the legislation Law on the Protection of People’s Health that prohibited smoking in public spaces such as cinemas and theatres as elaborated in the table below.

­Tobacco Control Legislation in Vietnam[9]

1989Law on the Protection of People’s Health
2000National Strategy on Tobacco Harm Prevention and Control (2000-2010)  approved by the Prime Minister
2004Vietnam Government ratified the WHO FCTC
2012Law on Prevention and Control of Tobacco Harms was enacted. The law stipulated smoke-free places; increased the size of pictorial health warnings on cigarette packages (occupying the top 50% of front and back panels); and instituted a comprehensive ban on tobacco advertising, promotion, and sponsorship.
 2013 The Prime Minister signs the National Strategy on Tobacco Harm Prevention and Control (2013-2020) in January 2013. The strategy sets specific targets to reduce smoking prevalence for the following groups: youths (aged 15–24) from 26% in 2011 to 18% in 2020; males from 47.4% in 2011 to 39% in 2020; and females to less than 1.4% by 2020.
The Law on Prevention and Control of Tobacco Harms was enacted in May 2013 and included the establishment of the Vietnam Tobacco Control Fund.
2014Revision of the Excise Tax Law was passed (tobacco excise tax rate increased to 70% effective 1 January 2016  and to 75% on 1 January 2019).
2016The Ministry of Finance issued Decision No. 70/QD-BTC revising the minimum selling price of cigarettes. The minimum selling price for filtered cigarettes hard is  VND 4,390 per hard pack and VND 3,860 per soft pack (exclusive of VAT).

 

[1] Data.worldbank.org. 2019. Population, Total – Vietnam | Data. [online] Available at: <https://data.worldbank.org/indicator/SP.POP.TOTL?locations=VN> [Accessed 6 May 2020].
[2] Ministry of Health. (2016). Global Adult Tobacco Survey (GATS) Viet Nam 2015.Vietnam.
[3] Global Data, Retail Prices, Cigarettes in Vietnam, 2019, page 29
[4] Worldbank Group. (May 2019). Vietnam Overview of Tobacco Control Legislation, Use and Taxation.
[5] Tobacco Production Quantity by Country, FAO Data: Food and Agriculture Organization <http://data.un.org/Data.aspx?d=FAO&f=itemCode%3a826>
[6] GlobalData. (January 2020). Cigarette in Vietnam, 2019.
[7] Untobaccocontrol.org. 2016. Viet Nam. [online] Available at: <https://untobaccocontrol.org/impldb/viet-nam/> [Accessed 6 May 2020].
[8] Vietnam Law on Prevention and Control of Tobacco Harms. Law No 09/2012/QH13. 18 June 2012.
[9] https://seatca.org/resource-center-asean-tc-vietnam/