Vietnam Prepares For Rise In Cigarette Smuggling As New Year Festival Looms

Source from:  Bernama 11/14/2013

Vietnamese authorities are preparing to crack down on cigarette smuggling which is expected to increase ahead of the Lunar New Year (Tet) festival, Vietnam News Agency (VNA) reported.

Truong Quang Hoai Nam, director of the Ministry of Industry and Trade's Market Watch Department, said smuggling methods had become increasingly sophisticated with syndicates setting up vast trans-national networks.

Vietnam is a major market for illicit cigarettes with 20 per cent sold in the domestic market.

Statistics from the Vietnam Tobacco Association showed more than 100 cigarette brands were smuggled into Vietnam, with Jet and Hero brands making up more than 90 per cent.

Contraband imports were mostly from China, Laos, Malaysia and the Philippines.

Sales of illegal cigarettes have contributed to a loss of 20-25 per cent in tobacco excise revenue every year, and lost earnings of around 17,000 tonnes of tobacco.

Pham Kien Nghiep, the association's general secretary, suggested the government increase incentives for authorities to 15 cent for each confiscated cigarette, and urged Vietnam to cooperate with Cambodia and Laos to prevent cigarette smuggling across common borders. Enditem