Applying special excise duty to beer products based on alcohol content

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Based on viewpoints of developing beer – alcohol – beverage industry by balancing the production and consumption between regions nationwide in order to prevent overusing alcoholic beverages, the Minister of Industry and Trade signed the Decision No. 3690/QD-BCT dated September 12, 2016 of the Ministry of Industry and Trade on approving the planning for development of Vietnams’ beer – alcohol – beverage industry by 2025 and the orientation towards 2035.
Under this Decision, the Minister determines to do research on applying special excise duty to beer products based on their output and alcohol content at suitable times to prevent trade frauds, price change and loss of budget revenues; Annually organize domestic trade fairs and exhibitions whereby enterprises may introduce and promote their products; Rent land area out to enterprises for developing centralized material areas in service of the beer-alcohol-beverage industry’s development; Encourage and enable economic sectors to invest in production by means of contribution of capital, issuance of shares/bonds, loans provided by domestic and foreign credit institutions. Especially, the construction of beer factories with a scale of under 50 million liters/year is not encouraged, except for factories that produce beer for domestic sale….
Total production of beer is expected to reach 4.6 billion liters, that of alcohol is expected to reach 350 million liters (in which, total production of industrial alcohol holds about 40%), and that of beverage is expected to reach 9.1 billion liters by 2025. The average growth rate of the value added of the whole industry is expected to reach 5.8%/year during 2016 – 2020, 4.6 %/year during 2021 – 2025 and 4.0%/year during 2026 – 2035.
This Decision takes effect on the signing date.