Can curative medicines be used for promotional purposes in Vietnam?

Can curative medicines be used for promotional purposes in Vietnam?

Article 5 of Decree 81/2018/ND-CP stipulates that promoted product and promotional product are as follows:

Promoted product or promotional product must comply with regulations of the Commercial Law and the following regulations:

1. Promoted products must not include wines, lottery, cigarettes, breast milk substitutes, medicines for human use including those permitted for circulation as regulated by the Ministry of Health (except for the case in which sales promotion is dedicated to traders involved in drug trading), examination and treatment service of public medical facilities, education service provided by public educational facilities or public vocational training facilities, goods and services that have been banned from circulation in Vietnam and other goods and services prohibited from sales promotion as required by laws.

2. Promotional products must not include wines, lottery, cigarettes, curative medicines for human use including those permitted for circulation as regulated by the Ministry of Health (except for the case in which sales promotion is dedicated to traders involved in drug trading), goods and services that have been banned from circulation in Vietnam and other goods and services prohibited from sales promotion as required by laws.

3. Money can also be used as promotional merchandise, except for sales promotion conducted in the forms prescribed in Article 8, 10 and 11 of this Decree.

Thus, according to the above regulations in Vietnam, medicinal drugs are a type of goods that cannot be used for promotion, except in the case of promotions for drug traders.

If you want to use medicine to promote to customers, this is against the law in Vietnam. You cannot use medicine from the pharmacy you promote to customers.

Can curative medicines be used for promotional purposes in Vietnam? (Image from the Internet)

How much is fine for Doing sales promotion for curative medicines in Vietnam?

According to Point b, Clause 3 and Clause 5, Article 33 of Decree 98/2020/ND-CP amended by Point dd, Clause 24, Article 3 of Decree 17/2022/ND-CP, regulations on violations of promotion are as follows:

3. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for committing one of the following violations:

b) Using promotional goods or services which are prohibited goods or services; restricted goods or services; goods or services the sale or supply of which is not yet permitted; wine, lottery, tobacco, or curative medicines for human, including those sold with the permission of the Ministry of Health (except the sales promotion is done for a tobacco trader), goods or services banned from being sold in Vietnam or other goods or services for which the sales promotion is prohibited as prescribed by law;

5. Additional penalty:

The exhibits of the violations prescribed in Point a, b, c and dd Clause 3 of this Article shall be confiscated, except the case of application of the remedial measure prescribed in Point a Clause 6 of this Article.

Pursuant to Point b, Clause 4, Article 4 of Decree 98/2020/ND-CP amended by Point b, Clause 1, Article 3 of Decree 17/2022/ND-CP regulating fine levels:

b) Fines mentioned under Chapter II hereof apply to administrative violations committed by individual offenders, except for administrative violations under Article 33, Article 35, Article 68, Article 70, Clauses 6, 7, 8, and 9 Article 73, Clauses 6, 7, and 8 Article 77 hereof. Organization offenders shall be met with twice the fines applicable to individual offenders.

Therefore, if you use medicine to promote customers, you will be fined from 10,000,000 VND to 15,000,000 VND. In addition, the medicine you use for promotion will be confiscated in Vietnam.

What are regulations on principles of sales promotion in Vietnam? 

Article 3 of Decree 81/2018/ND-CP stipulates principles of sales promotion as follows:

1. Sales promotion program must be implemented in a lawful, honest, public and transparent manner and must not harm legitimate rights and benefits of consumers, other traders, organizations or individuals.

2. The trader doing sales promotion must enable the winners to receive prizes and take responsibility to handle complaints (if any) regarding the sales promotion program.

3. The trader doing sales promotion must guarantee the quality of goods and services that are target of the sales promotion (hereinafter referred to as ‘promoted product”) and goods and services used for sales promotion (hereinafter referred to as ‘promotional product”).

4. Sales promotion must ensure:

a) Customers are not required to give up, refuse or exchange goods and services of other traders or organizations;

b) The trader doing sales promotion must not directly make comparisons of their goods and services to those of other traders, organizations or individuals.

5. The lottery results must not be used as a foundation to determine the prize winner or to present and reward bonuses in sale promotion program in the forms prescribed in Claus 5, 6 and 9 in Article 92 of the Commercial Law.

Above are regulations on principles of sales promotion in Vietnam.

Best regards!