What is maximum discount rate for goods or services that are target of sales promotion conducted by traders in Vietnam?

What is maximum discount rate for goods or services that are target of sales promotion conducted by traders in Vietnam?

In Article 6 of Decree 81/2018/ND-CP stipulating maximum value of promotional product:

1. The promotional value of a unit of promoted product must not exceed 50% of the price of such promoted product unit before the promotion, except for promotion in the forms prescribed in Clause 8 in Article 92 of the Commercial Law and Article 8, Clause 2 in Article 9, Article 12, 13 and 14 of this Decree.

2. Total value of promotional product of a sales promotion program conducted by traders must not exceed 50% of total value of promoted product, except for forms of promotion prescribed in Clause 8 in Article 92 of the Commercial Law, Article 8 and Clause 2 in Article 9 of this Decree.

3. The value of promotional product falls into of following cases:

a) For the case in which traders conducting sales promotion neither directly produce or import promotional goods nor provide promotional services, the value of such promotional product will be equal to the price paid by traders doing sales promotion to purchase promotional products or the market prices of such promotional products at the time of publication.

b) For promotional products directly produced, exported or provided by traders doing sales promotion, their value will be equal to the buying price or import price of such promotional products.

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.

In Clause 1, Article 7 of Decree 81/2018/ND-CP stipulates as follows:

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

According to this Article, maximum discount rate for goods or services that are target of sales promotion conducted by traders will not exceed 50% of the prices of such promoted products and services.

Is there maximum discount rate for fresh food in Vietnam?

According to Clause 3, Article 7 of Decree 81/2018/ND-CP stipulates as follows:

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

Thus, with fresh foods, the maximum discount rate will not be applied when performing a sales promotion in Vietnam.

What are conditions for provision of sample goods or services free of charge in Vietnam?

Pursuant to Article 8 of Decree 81/2018/ND-CP stipulating provision of sample goods or services free of charge, as follows:

1. Sample goods given or sample services provided to customers must be those which traders are selling or providing or going to sell or provide on the market in accordance to the law.

2. When receiving sample goods or sample services, customers are not required to make any payment.

3. Traders conducting sales promotion programs by giving sample goods or services to customers must take responsibility for the quality of such sample goods or services and must inform customers of all information concerning the trial use of such sample goods or services.

According to this Article, provision of sample goods or services free of charge must be goods and services that satisfy the above conditions in Vietnam.

Best Regards!