The smuggling of foreign beer and liquor into Vietnam has risen sharply, according to the Vietnam Beer Alcohol Beverage Association (VBA).

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High tax imposed on alcoholic drinks in the Southeast Asian country is the major reason behind the increased smuggling, said VBA chairman Nguyen Van Viet.

Viet said the special consumption tax on alcoholic drinks in Vietnam is currently at US$54.8 per 100 liters, which is much higher than China ($4.03 per 100 liters) and Cambodia ($19.23 per 100 liters).

The alcoholic drinks industry makes up five percent of Vietnam’s Gross Domestic Product (GDP), he added.

According to VBA figures, during the first six months of this year, approximately 28,000 smuggled liquor bottles and more than 40,000 contraband beer cans were seized in the country while the corresponding figures were 48,000 and over 35,000 in the entire year of 2013.   

In the first quarter of 2014, some famous global brewers such as Heineken and Carlsberg reported a drop of 15 to 17 percent in consumption, VBA revealed.

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