What is the maximum discount on goods in Vietnam?

Price reduction is a form of stimulation of supply and demand in commercial activities. So, what is the maximum discount on goods in Vietnam?

What is the maximum discount on goods in Vietnam? (Source: internet)

1. Discount on goods in sale promotion in Vietnam

According to Clause 1, Article 88 of the Commercial Law 2005, Sale 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.

According to Article 10 of Decree 81/2018/ND-CP, discounting is a form of sale promotion.

Therefore, the sale and provision of services at a price lower than the previous selling price or service provision shall be applied during the announced promotion period (promotion in the form of a discount).

2. The maximum discount for sale promotion in Vietnam

According to Article 7 of Decree 81/2018/ND-CP, stipulating the maximum discount for promotional goods and services, as follows:

- 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 of Decree 81/2018/ND-CP, 100% discount shall be offered.

The maximum discount rate of  100% discount may be also applied to sales promotion activities included in programs or activities of sales promotion decided by the Prime Minister of Vietnam

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

+ Goods or services by price stabilization programs of the State;

+ Fresh foods;

+ Goods or service of the businesses going bankrupt, dissolving, changing their location or business sector or trade

3. The administrative penalty for the act of reducing prices exceeding the prescribed level in Vietnam

Point e, Clause 2, Article 33 of Decree 98/2020/ND-CP specifies the following fine levels for individuals who violate promotion laws:

Individuals performing a sales promotion program in which total value of promotional goods or services exceeds the prescribed maximum one will face a fine of between 10 million VND and 20 million VND.

Note: For organizations with the same violation, the fine is 2 times higher than that of individuals.

Thus, for ordinary goods, the maximum discount can not exceed 50% of the value of the goods. Violations of the above provisions may result in a fine of up to 40 million VND.

Chi Nhan


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