Vietnam plans to raise taxes on beer and strong alcohol to 90% by 2031. 

Vietnam’s parliament has approved a plan to increase taxes on beer and strong alcoholic beverages to 90% by 2031, up from the current 65%. The tax hike will be phased in gradually, reaching 70% by 2027 before rising to 90% in 2031.

According to the finance ministry, higher taxes are necessary to reduce alcohol consumption.

Under the new law, drinks with over 20% alcohol by volume (ABV) will face the full 90% tax, while those under 20% ABV will see their rates rise from 35% to 60% by 2031.

Beginning 1 February 2025, the excise tax on wine will be calculated based on ABV. A 50% Most Favoured Nation (MFN) tariff will continue to apply to preferred international partners. However, tariffs have been gradually reduced under free trade agreements with the EU, Australia, and Chile, with European wines expected to be duty-free by 2027.

It remains uncertain whether this status will change due to the new tax measures.