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HANOI : Vietnam’s National Assembly has formally approved a staged increase in special consumption tax on alcoholic beverages, which will see the rate climb from the current 65% to 90% by 2031. The measure, passed on Saturday 14 June, reflects the government’s ongoing strategy to discourage alcohol consumption through fiscal policy, although the final rate is lower than the originally proposed ceiling of 100%. Under the new legislation, the excise tax on beer and high-strength spirits will be raised to 70% by 2027—one year later than previously anticipated—before incrementally increasing to 90% by 2031. The Ministry of Finance stated the move is intended to address public health concerns by curbing alcohol intake, particularly in light of the country’s growing consumption trends. Vietnam remains the second-largest beer market in Southeast Asia, according to a 2024 report by KPMG. However, the domestic industry has already come under pressure from tightening regulatory measures. A significant setback came in 2019, when the government introduced strict drink-driving laws that set a zero-alcohol threshold for motorists, which has contributed to declining demand. The industry—dominated by global brewers Heineken (Netherlands), Carlsberg (Denmark), and domestic players Sabeco and Habeco—has seen revenue fall for three consecutive years, according to the Vietnam Beer and Alcoholic Beverage Association. In response to deteriorating market conditions and the prospect of higher taxation, Heineken last year suspended operations at one of its facilities in the country. In a parallel development, legislators also approved a new sugar-sweetened beverage levy, targeting drinks containing more than 5g of sugar per 100ml. The levy is scheduled to take effect in 2027 at 8%, rising to 10% in 2028, in a move aligned with broader public health objectives. -Reuters

In an unprecedented move to streamline government operations and cut public expenditure, Vietnam’s National Assembly on 12 June approved plans to reduce the number of provinces and cities from 63 to 34, resulting in the elimination of nearly 80,000 state positions. The reform, hailed by officials as the most comprehensive administrative restructuring since the country’s founding in 1945, is part of a broader effort by the government to modernise governance and deliver what it calls “fast, stable and sustainable development.” The vote saw overwhelming approval with 461 in favour, just one opposing and three abstentions. This restructuring follows an earlier reform in February, which reduced the number of ministries and agencies from 30 to 22 and led to 23,000 job cuts. Together, the initiatives mark a significant shift in the structure and culture of public administration in the communist nation, where state employment has traditionally been considered secure and lifelong. Interior Minister Pham Thi Thanh Tra described the reform as a “revolution”, revealing that 79,339 officials will be affected—either retiring early or exiting public service. While the government has promised compensation, some long-serving officials expressed personal dismay at the abrupt end to their careers. One provincial officer, speaking anonymously, said he was “shocked and sad” to be leaving after more than three decades in the role. “I may receive some billion dong in compensation, but I am not happy,” he said, referring to a severance package of approximately US$38,000. “I don’t know what to do now, though I am still completely fit for work.” Among the broader population, reactions were mixed. While some supported the reforms for the promise of more efficient governance, others mourned the loss of regional identities. Nguyen Thang Loi, 52, from the soon-to-be merged Thai Binh province, said: “I fully support the decision, but it feels strange to say I now come from Hung Yen.” Communist Party General Secretary To Lam, the country’s most powerful political figure, emphasised the reform’s intent to reposition administrative bodies from “passive management to active service to the people.” The new leadership structures for the reconfigured provinces and cities will be announced by 30 June, with full operations scheduled to begin from July. Concurrently, the National Assembly is expected to pass a revised national constitution that will see the elimination of the district-level administration and the expansion of commune-level governance, reducing the existing three-tier administrative framework to two levels. The sweeping reforms come amid broader efforts to combat corruption and improve governance. Vietnam’s high-profile anti-graft campaign, dubbed the “blazing furnace,” has ensnared numerous senior officials since 2021, including two former presidents and three deputy prime ministers. Vietnam remains a key global manufacturing hub and posted 7.1 per cent GDP growth in 2024. It is targeting 8 per cent growth in 2025 as part of its long-term goal to reach middle-income country status by 2030. However, this growth trajectory faces external risks, including a threatened 46 per cent tariff on Vietnamese goods by the United States, prompting urgent trade negotiations. The reforms mark a dramatic shift from Vietnam’s traditionally cautious approach to political change, which has favoured stability to maintain investor confidence. The scale and speed of implementation under General Secretary Lam suggest a new phase of governance that prioritises structural efficiency, national competitiveness, and long-term economic ambition. -AFP

The Singapore Airlines (SIA) Group will be extending employment opportunities across its network to affected employees of Jetstar Asia, following the announcement that the Singapore-based budget airline will cease operations from 31 July. Approximately 500 staff based in Singapore are set to be retrenched as a result of the closure, announced by Jetstar Asia’s parent company Qantas on Wednesday. Rising supplier costs, elevated airport fees, and intensifying competition in the low-cost carrier segment were cited as contributing factors behind the decision. To support affected personnel, SIA Group is offering around 100 pilot positions and approximately 200 cabin crew roles across its carriers. A spokesperson for SIA stated on 13 June that the Group has been in close coordination with Jetstar Asia since the announcement and is committed to assisting employees through this transition. “We are creating a number of opportunities across our airlines, including positions for around 100 pilots and 200 cabin crew. Our aim is to support as many affected staff as possible in continuing their careers within the aviation sector,” the spokesperson said. SIA and Scoot representatives will be present at Jetstar Asia’s office from 17 to 19 June to meet with interested employees and provide further information on the available roles. “We understand that this is a time of uncertainty and are committed to providing the necessary support to help make the recruitment and onboarding process as smooth as possible,” the spokesperson added. The Group also expressed appreciation for the experience and professionalism of Jetstar Asia’s workforce and looks forward to welcoming successful candidates. The closure announcement came as a surprise to many Jetstar Asia employees, who expressed their shock at what they described as an “extreme” measure. Nonetheless, staff acknowledged the company’s comprehensive retrenchment package and transition support. Each affected employee will receive four weeks’ salary for every year of service, along with a bonus for the 2025 financial year, a special appreciation payment, and continued access to staff travel benefits equivalent to their tenure. The National Trades Union Congress (NTUC), in collaboration with the Singapore Manual and Mercantile Workers’ Union (SMMWU), is also engaged in efforts to assist the retrenched workers. Labour chief Ng Chee Meng confirmed that NTUC and its Employment and Employability Institute (e2i) will be stationed at Changi Airport Terminal 1 from next week to offer job placement services, career coaching, skills upgrading, and employability support—particularly targeting the aviation and aerospace sectors. Jetstar Asia will maintain flight operations over the next seven weeks before formally ceasing services at the end of July. -CNA

China’s liquefied natural gas (LNG) imports are projected to decline in 2025 for the first time in three years, according to revised outlooks from five independent research firms. The anticipated fall reflects subdued industrial activity and a strong supply of domestically produced and piped natural gas. The world’s largest LNG importer is now expected to reduce its purchases by between 6 per cent and 11 per cent from the 76.65 million metric tonnes imported in 2024. The downward revision marks a notable shift from earlier forecasts, which had anticipated a record year driven by Beijing’s economic stimulus measures. However, analysts now cite softer demand and increasing economic headwinds. Rystad Energy analyst Xiong Wei pointed to the compounding effects of US tariffs, which have weighed heavily on China’s export sector. “China’s consumer price index has also recorded year-on-year declines for several consecutive months, reflecting weak consumer confidence,” said Xiong. The contraction in demand has been exacerbated by a milder-than-expected winter and reduced industrial activity. Analysts at Rystad, Kpler and ICIS noted that Chinese consumers are increasingly turning to more cost-effective alternatives such as domestically produced gas and pipeline imports, diminishing the need for LNG shipments. This would mark only the second contraction in Chinese LNG imports since 2022, when pandemic-related restrictions significantly curtailed economic activity. According to Chinese customs data, LNG imports dropped to 20 million metric tonnes in the first four months of 2025, compared to nearly 29 million tonnes during the same period in 2024. “Even with a sharp rebound in the second half, it would not be sufficient to offset the weakness seen so far,” remarked Yuanda Wang, senior analyst at ICIS. Rystad estimates that natural gas consumption within the industrial and chemical sectors will fall by approximately 1 per cent this year. Typically, these sectors contribute an annual increase of 10 to 15 billion cubic metres in demand, according to Kpler analysts. The softness in demand is already reflected in import data, with major suppliers registering notable declines. Imports from Australia, Malaysia and Russia all fell by more than 20 per cent year-on-year between January and April, according to Chinese customs data. Australia, China’s leading LNG supplier in 2025, delivered 6.38 million tonnes in the first four months, a 24 per cent decrease compared to the same period in 2024. Kpler’s data indicates that the downturn was primarily seen in long-term contract volumes, while spot market purchases remained relatively stable. This emerging trend signals a rare retreat in what has otherwise been a trajectory of steady growth for China’s LNG market, raising broader questions around Asia’s energy demand outlook and global price stability. -Reuters

As Hong Kong Exchanges and Clearing Limited (HKEX) marks its 25th anniversary, the exchange has outlined a strategy to further cement its role as a bridge between Asia’s emerging businesses and the world’s capital markets. Chairman Carlson Tong Ka-shing confirmed the bourse’s intention to attract more secondary listings from across Asia, reaffirming Hong Kong’s pivotal position in connecting international and mainland Chinese capital. Currently linked with 20 global stock exchanges via mutual recognition agreements, HKEX has established channels for companies in Thailand, Indonesia, Singapore, Saudi Arabia and Abu Dhabi to sell additional shares in Hong Kong. “There is certainly interest among Asian companies to tap both global and Chinese funds in Hong Kong, indicating that the city can evolve into a major regional connector beyond its traditional role,” Tong stated in a recent interview following the World Federation of Exchanges board meeting in Singapore. So far this year, two Singapore-based firms have completed listings in Hong Kong, and a Thai coconut-water producer headquartered in Singapore is preparing to follow suit. The uptick in activity has elevated HKEX’s main board to the top of the global IPO league table. In the first five months of 2025, 27 companies raised US$9.96 billion—seven times the total for the same period last year. With over 160 companies currently in the IPO pipeline, the outlook remains robust. Tong noted that Hong Kong is “bucking the global trend” of subdued IPO volumes and increased privatisations, which have characterised other markets. He also revealed plans for substantial expansion in HKEX’s fixed income and currencies division. The move aims to strengthen Hong Kong’s status as a risk-management hub and support the internationalisation of the yuan. “Fixed-income products will have significant growth potential,” said Tong, referring to an array of instruments including derivatives for risk hedging and yuan-denominated offerings. HKEX was formed in 2000 through the merger of the city’s stock exchange, futures exchange and three clearing houses. Its history, however, traces back to the early days of securities trading in 1891. “HKEX has achieved a great deal in the past 25 years,” said Tong. “It has transformed from a largely domestic market into a superconnector between mainland China and global investors, offering a diversified suite of investment products—from equities and ETFs to commodities and derivatives.” Investor confidence has been richly rewarded. Since HKEX’s listing at HK$3.88, its stock has soared to HK$413.60 as of last Friday. Over the past quarter-century, the number of listed companies has tripled to 2,633, while total market capitalisation has increased ninefold to HK$42.76 trillion (US$5.48 trillion). Average daily turnover has surged 19-fold, reaching HK$242.3 billion in the first five months of 2025. Key to this expansion has been HKEX’s continuous adaptation of its listing framework. A pivotal reform came in 2018, allowing pre-revenue biopharmaceutical firms and companies with weighted voting rights to list. This enabled 360 so-called new-economy companies—including Alibaba Group Holding and Xiaomi—to raise a cumulative HK$1.03 trillion. Despite geopolitical headwinds, including the intensifying US-China trade conflict, Hong Kong’s markets have remained resilient. On 7 April, daily turnover peaked at a record HK$621 billion even as the Hang Seng Index tumbled 13.2 per cent following US tariff announcements. Tong, 70, has long been a prominent figure in Hong Kong’s capital markets. He previously chaired KPMG Asia-Pacific and served as chairman of the HKEX listing committee, where he oversaw landmark IPOs for entities such as the Industrial and Commercial Bank of China. As chairman of the Securities and Futures Commission from 2012 to 2018, he played a critical role in launching Stock Connect, facilitating cross-border trading with Shanghai and later Shenzhen. The programme has since expanded to include bonds, ETFs and derivatives. Appointed HKEX chairman in April 2024, Tong envisions a more community-connected future for the exchange. “HKEX is not merely a listed company—we have a public duty to ensure our markets support the real economy. We also want to give back and engage more with the people in our home market,” he said. To commemorate its silver jubilee, HKEX will host a citywide tour featuring the iconic listing ceremony gong between 20 June and 3 July. The HKEX Foundation, its philanthropic arm, will also deepen its support for local caregivers through a new three-year initiative. Since its launch in 2020, the foundation has allocated over HK$600 million to more than 130 community projects. A key source of the foundation’s funding is the unique stock code donation scheme, introduced in 1999, which allows companies to select preferred codes with a HK$3 million donation. The programme has raised over HK$1 billion to date, contributing to the foundation’s enduring impact on the city’s social landscape. -SCMP