The problem of sustainable development for the tobacco industry

In Vietnam, nearly 40 enterprises producing tobacco, which has 35 local businesses and five joint-venture enterprises with foreigners. In recent years, to implement the strategic objectives to develop


The role and prestige of enterprises is enhanced. According to statistics of the Vietnam Tobacco Association (VTA), in 2009, the sector budget reach 9.600 billion VND, up 27,6%, export turnover reached more than 108 million USD, up 18% over last year 2008; tax imports of raw and auxiliary materials was 584.7 million VND. 

According to strategy tobacco industry, Vietnam confirmed that tobacco products are restricted items of business, shall control the circulation and consumption of tobacco on the market, strict management of the wholesale , retail and other tobacco products, strict quality control, harm warning...
In fact, this control is not tight for all kinds of smuggled cigarettes. Through the detection, arrest of smuggled cigarettes can be seen, 100% of smuggled cigarettes have no source, origin, no quality control, food hygiene and safety, no maintenance mode reasonable, do not follow the regime of trademarks, there is no recommended health warnings of any kind. With these factors, health risk for consumers of very high cigarette smuggling, contraband cigarettes, but the fact remains strong circulation in the market, in some places, smuggled cigarettes accounted for a very large market share (70% in Can Tho, Ho Chi Minh city at 46% ...). 

The strategy also set a target of domestic enterprises to maintain production to meet market demand, and limit smuggling of tobacco products: The raw material, the target that by 2010, tobacco acreage around 39.200 ha, output reach 78.400 tons per year; By 2020, stable tobacco growing area of about 40.300 ha, output reach 88.600 tons per year. Since 2015, all production units use 100% tobacco cigarette raw materials through processing.

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