On 18 November 2024, EuroCham Vietnam held the “Vietnam Q3 Economic Insights and the Socio-Economic Impact of Excise Tax Policies on Industries” event at the Meliá Hanoi. With around 50 EuroCham members and industry experts in attendance, the session fostered valuable dialogue on Vietnam’s economic landscape and the effects of proposed tax policies.
Our esteemed speakers and panellists included:
- Dr. Nguyen Quoc Viet – Deputy Director at Vietnam Institute for Economic and Policy Research (VEPR)
- Dr. Nguyen Minh Thao – Head of the Business Environment and Competitiveness Department at Central Institute for Economic Management (CIEM)
- Ms. Dinh Thi Quynh Van – Chairwoman of PwC Vietnam
- Mr. Nguyen Thanh Phuc – Public & Government Affairs Director at Heineken Vietnam
The event opened with a warm welcome from Mr. Nguyen Hai Minh, Vice-Chairman of EuroCham. In his address, Mr. Minh provided an overview of Vietnam’s economic outlook, referencing the Economic Report for Q3: Prospects and Challenges for the Economy by VEPR and the VNU University of Economics and Business. He also highlighted key findings from EuroCham’s Business Confidence Index (BCI) for Q3 2024. Notably, the BCI saw a significant improvement this quarter, rising from 45.1 in Q3 2023 to 52.0 in Q3 2024, despite the ongoing challenges and unexpected harsh weather events.
Following the opening remarks, Dr. Nguyen Quoc Viet presented a comprehensive overview of both the global and Vietnamese economic landscapes. He shared valuable insights on the sustainability of Vietnam’s budget revenue sources.
Next, Ms. Dinh Thi Quynh Van delved into the potential impacts of proposed excise tax increases on the beer and tobacco industries, as well as the broader effects on government revenue and consumer behaviour. Her presentation was supported by detailed charts and figures, providing a clear picture of the implications of the policy changes.
Dr. Nguyen Minh Thao then took the stage to analyse the economic impact of the proposed excise tax hikes on the beer industry and 21 other sectors. He also offered suggestions for tax increases that would strike a balance between revenue generation and industry sustainability. All three speakers emphasised the importance of considering the broader economic and social effects when implementing tax changes, with a focus on a gradual, phased approach to avoid negative repercussions for the market and industry.
The event concluded with an insightful panel discussion and a Q&A session, moderated by Mr. Nguyen Hai Minh. During the session, the panellists addressed key questions from the audience on improving the investment climate and provided expert recommendations on the proposed excise tax hikes.
Mr. Nguyen Thanh Phuc, Public & Government Affairs Director at Heineken Vietnam, shared perspectives from a business standpoint. As a leading corporate partner of EuroCham and a major foreign direct investor in Vietnam, Mr. Phuc proposed that, rather than focusing solely on tax increases, the government should prioritise programmes aimed at promoting safe and responsible consumption.
This event reflects EuroCham’s ongoing commitment to initiating meaningful dialogues that drive policy advocacy and foster sustainable economic growth in Vietnam.
