After one year of implementing Directive 30 on strengthening the fight against cigarettes smuggling, the number of smuggled cigarettes has been reduced. However, smuggled cigarettes are still arriving in Vietnam in large quantities via south-western border provinces.
Travelling along Highway 91, groups of 2-3 motorbikes are laden with 1,200 –to 1,800 smuggled cigarettes heading for the central market at Chau Doc. There is a VND6,000-7,000 profit on each pack smuggled into the country. The smuggling is primarily focused on the south-western region and is possible due to the long borders with Cambodia and Laos and the ease of cross-border transport.
"About 1 billion packs were smuggled into Vietnam last year and caused losses to the state budget of 10,000 billion VIETNAM DONG. This figure dropped to about 7-8 hundred million packs in 2015. This may be seen as a good result. However, the level of smuggling and distribution of cigarettes still remains relatively high", Vu Van Cuong, Chairman of Vinataba said.
According to the National Steering Committee 389 and Vietnam Tobacco Association, the southern provinces consume about 85% of the total smuggled cigarettes, with nearly 55% consumed in HCMC alone. In the local markets and retail outlets, smuggled cigarettes are traded publicly without hindrance.
"We’ll provide the sufficient equipment and funds for the local authorities and forces to improve anti-tobacco smuggling activities. For those cases involving criminal prosecution, the implementation of Decree 124 increases the number of cases subject to criminal liability in smuggling", Duong Xuan Sinh, Deputy Head of Central Steering Committee 389, said.
Decree 124 will become effective on January 5th, 2016. The transport and trading of more than 500 packs of cigarettes will now be subject to criminal prosecution. However, the new rules are only expected to reduce the tobacco smuggling, not entirely eradicate the problem. In long term, there should be policies to assist local unemployed people to secure more stable livelihoods, and prevent criminals from encouraging smuggling.
