Contributions of the tobacco industry in Vietnam

Vietnam’s tobacco industry encompasses tobacco plant growing, product preservation, preliminarily processing and manufacturing and product consumption and distribution.

A complex industry

There are few industries with the large scale like the tobacco industry. Vietnam’s tobacco industry encompasses tobacco plant growing, product preservation, preliminarily processing and manufacturing and product consumption and distribution. The industry constitutes an important part of the economic and social structure of Vietnam, with more than 360,000 people depending on it for employment (2007 statistics from the Vietnam Tobacco Association). During our operations in Vietnam, we have created a number of jobs at our head office in HCM City as well as at the BAT-Vinataba and Vina-BAT joint venture factories.

Playing the role of major tax payer

Tobacco tax is a major source of revenue for the central as well as provincial governments. In 2007 the tobacco industry contributed VND8 trillion worth of tax to the state budget to rank third after petroleum and electricity in terms of tax payment.

Being the most widely cultivated non-food crop

Tobacco is the world’s most widely cultivated non-food crop. The farmers who choose to grow tobacco because it grows well in poorer soils and volatile weather, and is known for fetching stable prices. Farmers can earn good yields from very small plots of tobacco and are able to grow other crops. The techniques used for growing qualified tobacco can also be applied to growing these other crops.

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