Maximum value of promotional product in Vietnam

 Maximum value of promotional product in Vietnam

Pursuant to Article 6 of Decree 81/2018/ND-CP regulating the maximum value of promotional product:

- 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 2005 and Article 8, Clause 2 in Article 9, Article 12, 13 and 14 of Decree 81/2018/ND-CP.

- 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 2005, Article 8 and Clause 2 in Article 9 of Decree 81/2018/ND-CP.

- The value of promotional product falls into of following cases:

+ 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.

+ 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.

- 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.

- Concentrated sales promotion programs prescribed in Clause 4 in Article 6 of Decree 81/2018/ND-CP include:

+ 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;

+ 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.

Maximum value of promotional product in Vietnam (Internet image) 

Maximum discount rate for the promoted product in Vietnam

Pursuant to Article 7 of Decree 81/2018/ND-CP, 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. 100% discount may be also applied to sales promotion activities included in programs or activities of sales promotion decided by the Prime Minister.

- 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

Mai Thanh Loi

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