Vietnam National Assembly Debates Tobacco Licensing Reforms on November 9
The National Assembly submitted a draft law amending and supplementing several articles of the Law on Prevention and Control of Tobacco Harms on October 21 for committee discussion, with a full-house debate scheduled for November 9. Lawmakers focused heavily on whether to maintain or abolish distribution, wholesale, and retail licensing for tobacco products. This debate links directly to the continuity of administrative reform, post-inspection market oversight, and the adaptability of large enterprises and household business networks.
Government Decrees and Temporary Exemptions Drive the Debate
Government Resolution No. 19/2026/NQ-CP mandates the simplification and reduction of procedures under the jurisdiction of the Ministry of Industry and Trade. Resolution No. 66.18/2026/NQ-CP permits the temporary waiver of specific licensing requirements for purchasing and selling tobacco products from July 1, 2026, through February 28, 2027. Because this waiver is time-bound, the legislative revision faces the challenge of clearly defining management methods after the transition period ends. If previously scaled-back or suspended procedures return once the new law takes effect, businesses and household operators must adjust operations continuously, while regulatory agencies must reallocate resources to process applications.
Lam Dong Lawmaker Weighs Public Health Against Administrative Reform
Trinh Thi Tu An, a National Assembly deputy for Lam Dong province, told Nguoi Dua Tin that lawmakers must evaluate the retention of tobacco distribution licenses from two distinct viewpoints: the necessity of controlling products harmful to public health and the necessity of reforming administrative procedures to facilitate legitimate business activities. Tobacco is not a general consumer good,
Tu An said, adding that the state must strictly control production, distribution, and consumption. However, we must distinguish between management needs and the need to maintain each permit. A high number of permits does not necessarily mean higher management efficiency.
The deputy argued that lawmakers should evaluate the specific role of licensing at each supply chain stage to identify which permits genuinely aid control. If a procedure only serves to verify previously prescribed conditions that can be verified through data or on-site inspection activities, we should consider abolishing the license and maintaining other measures,
she stated. If licensing disappears, authorities must define alternative mechanisms beyond a simple shift from pre-inspection to post-inspection. The management of origin and distribution systems requires special attention, obligating businesses to prove legal product origins, retain sales documents, and provide traceable data.
Compliance Costs and Regulatory Burdens on Retail Networks
Pham Ngoc Lam, a National Assembly deputy from the Gia Lai delegation, agreed during group discussions that tobacco trading remains a conditional investment sector requiring strict supervision. However, he argued that meeting business conditions does not require a license at every stage of the production and distribution chain. The 2025 Investment Law permits diverse management methods for conditional sectors without mandating licenses for every activity.
Lam estimated the financial impact of current licensing rules, noting that a five-year license costs approximately 6 million VND, translating to 1.2 million VND per year for each establishment. Applied across a large network of shops, households, and merchants, the cumulative compliance cost is substantial. Meanwhile, current licensing procedures rely primarily on document reviews and do not directly dictate market volume or consumer access.
The most important principle is to ensure policy consistency and stability, Dung said. We must avoid a situation where procedures are streamlined on one side while additional requirements emerge on another.
Dates and Costs for Tobacco Licensing Waivers
What specific dates govern the temporary tobacco licensing waivers?
Government Resolution No. 66.18/2026/NQ-CP allows authorities to waive specific tobacco purchase and sale licensing requirements from July 1, 2026, through February 28, 2027.
How much does a standard tobacco business license cost under current regulations?
A five-year tobacco business license costs approximately 6 million VND, which equals an average of 1.2 million VND per year for each business establishment, according to figures cited by Deputy Pham Ngoc Lam.
Which legal articles govern comprehensive supply chain controls for tobacco products?
Articles 21 and 22 of the existing law regulate the comprehensive supply chain controls from production to importation, independent of retail and wholesale licensing procedures.
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