It changed the term “sugared drinks” to “sugary beverages” in the draft, according to the Vietnamese standard, following feedback from businesses.

Under the Vietnamese standard, sugary beverages include carbonated drinks, energy drinks, electrolyte drinks, energy and sports drinks, drinks containing tea and coffee, and fruit juices.

Apart from milk and nutritional drinks, liquid foods for nutritional purposes, natural mineral water and bottled water, fruit and vegetable juices and nectars, and cocoa products are also excluded from the tax, according to the MoF.

The ministry said it will study the special consumption tax on soft drinks based on certain sugar content to encourage businesses to produce and import soft drinks with low sugar content.

According to the World Health Organization, soft drinks with sugar are one of leading reasons behind non-infectious diseases such as cardiovascular disease and diabetes.

During 2010-2020, the rate of obesity among adults in Vietnam doubled, from 8.5 per cent to 19 per cent.

Source: VN Economic Times