During Tet 2023, what is the maximum discount rate for the promoted product in Vietnam?

What is sales promotion?

Pursuant to Clause 1 Article 88 of the Law on Commercial in 2005 stipulating sales promotion as follows:

Sales promotion

Sales promotion means activities of commercial promotion conducted by traders to promote the purchase and sale of goods or the provision of services by offering certain benefits to customers.

As regulations above, sales promotion means activities of commercial promotion conducted by traders to promote the purchase and sale of goods or the provision of services by offering certain benefits to customers.

Pursuant to Article 93 of the Law on Commercial in 2005 stipulating sales promotion goods and services as follows:

Sales promotion goods and services

1. Sales promotion goods and services mean goods and services use by traders to promote their sale and provision in various forms of sales promotion.

2. Sales promotion goods and services must be those traded lawfully.

As regulations above, there are 2 cases of sales promotion goods and services in Vietnam, which are:

- Sales promotion goods and services mean goods and services use by traders to promote their sale and provision in various forms of sales promotion.

- Sales promotion goods and services must be those traded lawfully.

During Tet 2023, what is the maximum discount rate for the promoted product in Vietnam?

Pursuant to Clause 1 and 2, Article 7 of the Decree 81/2018/NĐ-CP stipulating maximum discount rate for the promoted product as follows:

Maximum discount rate for the promoted product

1. The maximum discount must not exceed 50% of the prices of such promoted product before the sales promotion.

2. For time-limited promotion prescribed in Clause 5 in Article 6, 100% discount shall be offered. 100% discount may be also applied to sales promotion activities included in programs or activities of sales promotion decided by the Prime Minister.

As regulations above, the maximum discount must not exceed 50% of the prices of such promoted product before the sales promotion.

For time-limited promotion prescribed in Clause 5 in Article 6, 100% discount shall be offered. 100% discount may be also applied to sales promotion activities included in programs or activities of sales promotion decided by the Prime Minister.

Pursuant to Clause 4 and 5, Article 6 of the Decree 81/2018/NĐ-CP stipulating maximum value of promotional product as follows:

Maximum value of promotional product

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4. For time-limited sales promotion (effective within certain frame of hours, days, weeks, months or seasons), the limit shall be 100% of the value of the promotional product. Such limit shall also be applied to sales promotion activities included in programs or activities of sales promotion decided by the Prime Minister.

5. Concentrated sales promotion programs prescribed in Clause 4 in this Article include:

a) time-limited sales promotion programs effective within certain frame of hours, days, weeks, months or seasons conducted by the central and provincial state agencies for the purpose of implementing economic development policies which covers national and local objectives. The State shall issue incentive policies for conducting concentrated sales promotion programs. All traders are entitled to participate in such programs;

b) Sales promotion programs on Tet holidays and other holidays as prescribed in the labor law include:

- sales promotion programs on Lunar New Year conducted 30 days ahead of the first day of lunar year;

- sales promotion programs conducted on other holidays. Sales promotion period of each promotion program conducted on Tet holidays or other holidays shall not exceed the time for such holidays in accordance to the labor law.

As regulations above, on Tet 2023, sellers can conduct concentrated promotions and can promote 100% of goods and services.

Sales promotion programs on Tet 2023 shall be conducted 30 days ahead of the first day of lunar year.

What are the fines for exceeding prescribed maximum sales promotion during Tet 2023 in Vietnam?

Pursuant to Clause 2.e and 2.g, Article 33 of the Decree 98/2020/NĐ-CP stipulating violations against regulations on sales promotion as follows:

Violations against regulations on sales promotion

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2. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for committing one of the following violations:

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e) Performing a sales promotion program in which total value of promotional goods or services exceeds the prescribed maximum one;

g) Doing a sales promotion program in the form of discounts in which the discount rate for the promoted goods or services exceeds the prescribed maximum one;

As regulations above, the fines for exceeding prescribed maximum sales promotion during Tet 2023 in Vietnam shall be from VND 10.000.000 to VND 20.000.000.

The fine for organization shall be doubled.

Best regards!