On October 10, 2024, the Government of Vietnam issued Decree No. 128/2024/ND-CP (‘’Decree 128”) in order to amend and supplement several articles of Decree No. 81/2018/ND-CP (“Decree 81”) dated May 22, 2018, detailing the Commercial Law’s provisions on sales promotion. Below are key aspects of Decree 128 and their implications:
Maximum value of promotional goods and services
The Decree 128 has amended the articles on the maximum value of promotional goods and services as prescribed in Article 6 of Decree 81 as follows:
– The promotional material value of a unit of promoted goods or service must not exceed 50% of the price of such promoted unit immediately before the promotion time, except sales promotion in forms such as cultural, artistic, entertainment programs and other events, provision of samples or giveaway without any payment, and lucky promotional program.
– The total value of promotional goods or services under a sales promotion program offered by merchants must not exceed 50% of the total value of promoted goods or services, except sales promotion in forms such as cultural, artistic, entertainment programs and other events, provision of samples or giveaway without any payment.
In comparison to the previous regulations in Article 6 of Decree 81, Decree 128 introduces two key updates:
– The updated rule specifies that the promotional value is calculated based on the price of the goods or services “immediately before the promotion time”, clarifying the timing for price reference.
– Additional exceptions now allow for promotional programs with no cap on value limits, provided they are approved by the State management agency in charge of commerce under Clause 9, Article 92 of the Commercial Law.
Maximum discount rate for promoted goods and services in time-limited promotion programs
Regarding goods and services in time-limited sales promotion programs, Decree 128 has amended the provisions of Clause 2, Article 7 of Decree 81 as follows:
– The maximum discount rate for goods and services is set at 100%.
– This rate shall also be applied to sales promotion activities within sales promotion programs or activities decided by the Prime Minister.
Previously, the maximum discount rate of 100% applied only to time-limited promotion programs (e.g., promotional hours, days, weeks, months, or seasons), Decree 128 extends this 100% discount to promotions conducted during holidays and special occasions prescribed under the labor law, such as the Lunar New Year and other national holidays.
Promotion notification exceptions
Decree 128 redefines and separates the cases where merchants are required to notify their sales promotions in line with other updates thereunder. Prior to Decree 128, sales promotions applicable to goods and services sold on the e-commerce marketplaces and the cap of VND100 million of prizes and gifts were intertwined with other promotion campaigns.
Decree 128 is a significant step forward in Vietnam’s sales promotion regulatory framework, enabling enterprises to use increased promotional flexibility while adhering to high compliance criteria to encourage fair competition and market growth.
