KT&G suspends orders for "Lil Hybrid 3.0" due to Vietnam ban

According to a report from Newspim on February 21, KT&G, a South Korean tobacco company, has suspended orders for its heated tobacco device "Lil Hybrid 3.0" due to the impact of Vietnam's ban on e-cigarettes and heated tobacco. This policy has led to a halt in production at the local heated tobacco assembly factory, and it is expected that the unstable supply situation may continue until June 2025.

According to industry sources, KT&G has informed convenience stores nationwide to temporarily suspend orders for the "Lil Hybrid 3.0" devices on the 21st. The supply crisis is expected to last for nearly five months. Initially, KT&G had planned to offer a trade-in program for the "Lil Hybrid 3.0" products with discounts by February 28, but due to a shortage of devices, the program has been abruptly halted. In the meantime, KT&G is guiding convenience stores to focus on selling other models such as the "Lil Able 2.0".

The reason for the unstable supply of the "Lil Hybrid 3.0" product is due to the increased regulations on heated tobacco in Vietnam. In November 2024, the Vietnamese government decided to ban the production, trade, import, storage, transportation, and use of e-cigarettes and heated tobacco from 2025 onwards. Although specific regulations and penalties are still being formulated, it is expected to further restrict the import and production of heated tobacco. As a result, KT&G's production has been severely affected.

KT&G produces the "Lil Hybrid 3.0" series of heated tobacco products through a partnership factory in Vietnam for final assembly and production. Due to policy changes in Vietnam, these factories have ceased production and supply, directly impacting KT&G. The company is currently actively seeking a new production base and anticipates that this supply instability may continue for up to five months.

KT&G has stated that the supply of "Lil Hybrid 3.0" is currently affected by Vietnamese policies. They are making efforts to restore the supply as soon as possible and have emphasized that the supply of "Lil Able 2.0" is currently normal.

Related readings: Vietnam Customs General Department issues ban: Import procedures for e-cigarettes and heated tobacco products will be discontinued starting in 2025.