Does the value of promotional goods in the form of discounts exceed the pre-promotional selling price in Vietnam?

Does the value of promotional goods in the form of discounts exceed the pre-promotional selling price in Vietnam?

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

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.

3. Maximum discount rate must not be applied to sales promotion of:

a) goods or services by price stabilization programs of the State;

b) fresh foods;

c) goods or service of the businesses going bankrupt, dissolving, changing their location or business sector or trade.

According to this regulation, the value of promotional goods in the form of discounts will not exceed the pre-promotional selling price. The maximum discount rate is 50% of the price of the goods before the promotion period.

Does the value of promotional goods in the form of discounts exceed the pre-promotional selling price in Vietnam? - Source: Internet

Can prescription drugs be used as promotional goods in Vietnam?

Pursuant to Article 5 of the Decree 81/2018/NĐ-CP stipulating promoted product and promotional product 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.

Therefore, prescription drugs will not be allowed to be used as promotional goods for consumers, but can only be provided to pharmaceutical businesses to use as promotional goods.

What are the principles that must be ensured in the implementation of promotion in Vietnam?

Pursuant to Article 3 of the Decree 81/2018/NĐ-CP stipulating 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.

As regulations above, the implementation of promotion must ensure the above principles in accordance with the law.

Best regards!