But in a recent decision, it instructed its agencies to use other legal means to limit playing time.
Earlier this year the ministry had suggested imposing the tax on online games as a means to dissuade people from playing them, saying they have negative impacts on players’ health and society.
But industry insiders and experts criticized the proposal, saying gaming has the potential to become a new industry.
The tax would decrease the competitiveness of Vietnamese game producers and cause them to move overseas, they said.
The ministry had also proposed taxing sugary drinks since they cause obesity, but the government has asked for more scientific data to back that claim.
It also tasked the ministry with studying the possibility of taxing e-cigarettes to ensure Vietnam’s international commitments would not be breached.