Research using I-O analysis method to estimate the impact of tobacco tax increase on output and employment in Vietnam according to the proposed tax increase plans of the Ministry of Finance and the Ministry of Health, the results show. The increase in excise taxes on cigarettes will have an effect on increasing the total output and employment of the economy. With the plan to increase tax by 5,000 VND / cigarette pack, output and employment will increase by 0.003% and 0.06%, respectively. This result is also quite similar to most published international studies, showing that when consumers reduce their spending on tobacco products, this expenditure will be transferred to buying goods and Alternative services increase consumer benefits, improve health, community and improve labor productivity. Therefore, tax increases may narrow output and employment in the tobacco industry, but widen production and employment in other sectors.