Recommended Tax Increase on High-Fructose Corn Syrup Drinks in Vietnam

According to the latest report from the Vietnam Agricultural Newspaper, the Vietnam Sugar and Sugar-Cane Association (VSSA) has conducted in-depth research and analysis, and believes that the current definition of sugary drinks in the Vietnamese standard (TCVN) no longer aligns with the industry's development trend. This is because high-fructose corn syrup (HFCS), as an emerging sweetener, has gradually replaced traditional sugar as the mainstream sweetening ingredient in the soft drink market.

Based on this reality, the Vietnam Sugar and Sugar-Cane Association has decided to take action to address this industry change. To this end, the association has officially sent a letter to the Vietnamese government and the Ministry of Finance, proposing a series of recommendations. The most important of these is the suggestion to increase the consumption tax rate on HFCS-containing soft drinks to 20%.

This recommendation aims to guide consumers to reduce their consumption of these beverages through adjustments to the consumption tax rate on HFCS-containing drinks, thereby protecting consumer health while also supporting the development of the domestic sugar industry.

The action taken by the Vietnam Sugar and Sugar-Cane Association reflects their sensitivity to industry changes and their concern for consumer health. Through this approach, they hope to guide the industry towards a healthier and more sustainable direction.