Vietnam's Low Tobacco Prices Drive Growth in Illegal Trade
A WHO-backed study reported that Vietnam’s low retail prices for tobacco products are helping drive growth in illegal tobacco trade. The analysis says weak tax reform has also contributed to the problem.
According to reports from Tobacco Control, a recent study by the World Health Organization indicates that the low prices of tobacco products in Vietnam (i.e., the retail prices of tobacco products are relatively low) have led to an increasing trend in the black market trade of illegal tobacco products.
However, the World Health Organization's analysis suggests that the Vietnamese government's lack of reform in tobacco taxation has also contributed to the high number of smuggled and counterfeit tobacco products in the country.
To address this, the World Health Organization recommends that the Vietnamese government should raise the tax rates on tobacco products to increase the market retail prices of domestic tobacco products. At the same time, the government should implement strong regulatory measures to create a more transparent and fair social environment to combat counterfeiting and smuggling of tobacco products, effectively reducing the volume of illegal tobacco products in the Vietnamese black market.
