On July 15 2018, Decree 81/2018/ND-CP dated May 22 2018
(Decree 81) took effect and repealed Decree 37/2006/ND-CP dated
April 4 2006 (Decree 37), detailing regulations on the law
regarding commercial promotional activities. Decree 81 provides
certain new regulations with the aim of facilitating commercial
promotional activities and encouraging market development.
First, Decree 81 relaxes the 50% threshold applicable to the
value of goods and services used in sale promotions, and the
discount of promoted goods and services. Specifically, the
value of goods and services used in sale promotions, and
discounts on promoted goods and services can be up to 100% of
the unit price of the promoted goods and services in the
following circumstances: (i) in promotional programmes
organised by the governmental authorities within a defined
timeframe; or (ii) in a promotion on the occasion of a special
holiday as defined by the labour law, for example, Lunar New
Year, or other statutory holidays. However, even in the
above-mentioned circumstances, this maximum discount does not
apply to fresh or raw products, or goods and services covered
by the government's price stabilisation policy, or to goods and
services in cases of bankruptcy, dissolution, change of
location, or change of industry or trade.
Second, a new regulation on sales promotion in the form of
multi-level marketing is introduced under Decree 81. Decree 81
provides that the enterprise is only permitted to run its
promotions on a multi-level basis if it has specifically
registered the business line for multi-level marketing
operations with the competent licensing authorities. In
addition, Decree 81 provides that the enterprise must comply
with the provisions of the law on management of multi-level
marketing operation activities.
Third, principles for sales promotion under Decree 81 offer
better protection of the customer benefits. Under this
protection, the enterprise is not allowed to: (i) request the
customers entitled to the promotion to give up, refuse or
exchange the products or services of other enterprises; or,
(ii) use lottery results as a basis for deciding winners or to
offer prizes if its promotion is organised in the form of a
prize-contest or game of chance.
Lastly, Decree 81 provides the necessary forms which the
enterprise can use to announce its planned promotions, or
register them with the competent authorities. This means that
enterprises will not have to wait for any further guidance,
such as circulars, to be issued by the authorities before it
can implement its promotional activities.
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Hiramatsu
Akira |
Nguyen Thi
Thanh Tram |