Patterns of Alcohol Expenditure in Vietnam: Implications for Anti-alcohol Policies

This study examines the relationship between the sociodemographic features of Vietnamese households and their intake and spending on alcoholic beverages, using microdata from the 2018 Vietnam Household Living Standard Survey. With censored data, three Tobit models were employed to estimate household expenditures and consumption. The results indicate that socioeconomic aspects of the household play a role in alcohol expenditure decisions. Changing socioeconomic and demographic factors of Vietnamese households have led to an increase in alcohol consumption. This gives an impetus for the growth of the alcohol business. However, rising alcohol consumption has societal effects that must be managed. As a result, it is vital to reduce the affordability of alcohol to discourage usage. Authorities may propose increasing excise rates on these commodities to discourage consumption, thereby raising government tax income and decreasing the health expenses related to increased alcohol consumption.