IS TRADING IN E-CIGARETTES CONSIDERED TRADING IN PROHIBITED GOODS?

Concomitant with the proliferation of social networks and contemporary consumer trends, electronic cigarettes have progressively become a ubiquitous presence in youth culture. A substantial demographic of young individuals perceives them as a highly utilitarian alternative to conventional cigarettes, attributing this to the mitigated olfactory nuisance, operational convenience, aesthetic appeal, and their function as a medium for personal expression. Furthermore, a significant proportion harbors the belief that e-cigarettes pose diminished health risks, subsequently conceptualizing them as a safe substitute.

However, behind the trendy facade lies a series of potential risks to physical and mental health, especially among adolescents. Facing the reality of the increasing use of electronic cigarettes and their potential to cause alarming consequences, competent state authorities have taken drastic measures to control this issue. Since Resolution 173/2024/QH15 was passed by the National Assembly, the production, trading, importation, harboring, transportation, and use of electronic cigarettes, heated tobacco products, as well as other narcotic and harmful gases and substances, have been officially strictly prohibited.

1. What are electronic cigarettes?

Electronic cigarettes (Electronic Nicotine Delivery Systems – ENDS), also known as E-cigarettes or Vapes, are battery-operated handheld electronic devices designed to heat a liquid containing nicotine and other chemical components to create an aerosol for the user to inhale.

Structurally, electronic cigarettes typically consist of 03 main components as follows:

(Legal Basis: Decree 77/2013/ND-CP and Article 1 of amended and supplemented Decree 371/2025/ND-CP)

There are many popular types of electronic cigarettes such as Vapes, Pods, Disposable Pods, IQOS (similar to traditional cigarettes), Vape pens, etc.

2. Reasons for the strict ban on electronic cigarettes

Currently, Resolution No. 173/2024/QH15, passed by the National Assembly and officially taking effect on January 14, 2025, has established a clear legal boundary by identifying the act of "trading in electronic cigarettes" as a strictly prohibited act. This is the definitive stance of the State in protecting public health, especially against the growing trend of these products' usage among the youth.

Furthermore, the 2025 Investment Law (effective from March 1, 2026) continues to affirm this strict position by officially placing "Trading in electronic cigarettes" into the list of banned business investment sectors. The consistency within the legal framework this time demonstrates a synchronized determination from policy to enforcement, leaving no legal loopholes for the production, distribution, or commercialization of e-cigarette products in any form.

2.1. Severe risk to public health

Although e-cigarettes are often promoted as "less harmful than traditional cigarettes," reality shows that these products still contain nicotine (a highly addictive substance that can directly affect the central nervous system). Besides nicotine, e-liquids also contain various other chemical compounds, solvents, flavorings, and additives which, when heated to form an aerosol, can generate additional toxic substances.

Notably, the long-term effects of inhaling this aerosol have not been fully researched. The lack of comprehensive scientific data makes the potential risks to the respiratory system, cardiovascular system, and brain, particularly in young people, an alarming issue. Therefore, authorities tend to apply the precautionary principle to protect public health.

2.2. Increasing usage among adolescents

One of the key reasons leading to the complete ban on e-cigarettes is the rapid increase in their usage among students. The compact, modern design, appealing flavors such as fruit, mint, and beverages, along with social media marketing, have made these products highly accessible and attractive to the youth.

The use of nicotine during adolescence can affect brain development, increase the risk of addiction, and potentially serve as a gateway to using traditional cigarettes or other stimulants. This is not only a medical issue but also relates to social order, safety, and the school environment.

2.3. Risk of adulteration with banned substances and narcotics

Practice has recorded many cases where e-cigarettes are laced with synthetic drugs or hallucinogens to increase the stimulating effect. This poses difficulties for authorities in detection and control, as the external appearance of the product does not show clear differences.

The exploitation of e-cigarettes as a means to conceal, transport, or use narcotics has significantly increased the level of danger to society.

2.4. Difficulties in the management mechanism and origin control

Prior to the ban, e-cigarettes circulating in the Vietnamese market were primarily smuggled goods with unknown origins, unverified quality, and had not been integrated into the specialized management system for tobacco products. This reality led to many alarming consequences: authorities could not control the structural components, nicotine levels, or additives present in the e-liquids; consumers were not provided with full and transparent health warning mechanisms; the State lost tax revenue due to illicit trading activities; and concurrently, there were no unified technical standards to serve as a basis for monitoring and handling violations. In the context of an incomplete management mechanism, continuing to allow the circulation of products with such potential risks could lead to consequences far exceeding any short-term economic benefits they might bring.

3. Legal sanctions for trading in electronic cigarettes

Since e-cigarettes are classified as "prohibited goods" according to regulations, the act of trading in e-cigarettes is considered trading in prohibited goods and will be strictly handled under the law.

3.1. Administrative penalties

For individuals committing violations, depending on the nature, severity, quantity, and value of the violating goods, they may be fined from 1,000,000 VND up to 100,000,000 VND.

For organizations, the applicable fine will be twice that of individuals.

In addition to monetary fines, competent authorities can also apply supplementary measures such as the confiscation of exhibits and violating vehicles, and the forced destruction of the goods.

(Legal Basis: Article 8 of Decree No. 98/2020/ND-CP)

3.2. Criminal prosecution

In cases where the violation has sufficient elements to constitute a crime, the individual or organization trading in e-cigarettes will be prosecuted for the Crime of producing and trading in prohibited goods under Article 190 of the 2015 Penal Code (amended and supplemented in 2017).

Depending on the quantity of goods, the value of illicit profits, and aggravating circumstances, the offender may face heavy fines or a fixed-term prison sentence; organizations may also face temporary or permanent suspension of operations. This shows that trading in e-cigarettes is not limited to administrative penalties but also carries massive legal risks.

From the above analysis, it can be seen that in the context where current laws have clearly defined e-cigarettes as items strictly prohibited from production, business, and circulation, the act of trading in e-cigarettes is no longer merely a normal commercial activity but has assumed the nature of trading in prohibited goods. Once a product is placed on the list of banned business investments and strictly forbidden from circulating in the market, all buying and selling activities for profit-making purposes carry the potential risk of being handled under administrative sanctions or even criminal prosecution, depending on the nature and severity of the violation.

DL PINNACLE LAW FIRM LLC