The government has approved a proposal from the Ministry of Industry and Trade to end the operations of three branches of foreign tobacco firms in Vietnam.
The firms are JTI Vietnam, BAT Vietnam and Philip Morris Vietnam, according to a report on the government website on Thursday.
The report said the firms' business licenses will not be exended when they expire. No further details were provided.
Vietnam plans to impose heavy environment taxes on tobacco from 2012.
The country has been included in a group of countries with high smoking rates among adult men.
According to the World Health Organisation, tobacco-related illnesses are the leading cause of death in the country, with 40,000 deaths each year from smoking.