Decree No. 32/1999/NĐ-CP on Promotions, Commercial Advertising, and Trade Fairs and Exhibitions

DECREE

Regarding Promotions, Commercial Advertising, and Trade Fairs and Exhibitions

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THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the Law on Commerce dated May 10, 1997;

At the proposal of the Minister of Trade,

DECREE:

Chapter 1:

GENERAL PROVISIONS

Article 1. Scope of application

This Decree provides detailed implementation of the Law on Commerce regarding promotions, commercial advertising, and trade fairs and exhibitions.

Article 2. Provisions concerning merchants conducting promotions, operating advertising services, and operating trade fair and exhibition services

1. All merchants are permitted to conduct promotions according to Article 181 of the Law on Commerce, specific provisions herein, and must comply with the provisions of Articles 183 and 185 of the Law on Commerce.

2. Merchants who meet the conditions stipulated in Articles 21 and 26 of this Decree and have been granted a Business Registration Certificate for operating advertising services and trade fair and exhibition services by competent state authorities may operate such services.

Chapter 2:

PROMOTIONS

PART 1

 MERCHANDISE AND SERVICES FOR PROMOTIONS; PRICES OF MERCHANDISE AND SERVICES DURING PROMOTIONS

Article 3. Merchandise and services for promotions

1. Merchandise and services for promotions are merchandise and services provided by merchants to give away, reward customers, or supply to customers during promotion periods.

2. Merchandise and services for promotions must not be goods prohibited from circulation or services prohibited from being performed under the law.

3. The value of merchandise and services for promotions for each promotional item shall not exceed 30% of the price of the merchandise or service before the promotion period.

Article 4. Prices of merchandise and services during promotions

During the promotion period, the price of each item of merchandise or service shall not be less than 70% of its price before the promotion period.

PART 2

FORMS OF PROMOTIONS

Article 5. Providing samples for customers to try free of charge

Samples provided for customers to try free of charge must be products currently sold or will be sold on the market.

Article 6. Giving away merchandise or supplying services to customers without charging money

Merchants may use merchandise or services they are selling or other merchandise or services to give away or supply to customers.

Article 7. Selling merchandise or supplying services at a lower price than the normal selling price or service supply price before the promotion period

When implementing this form of promotion, merchants must display the promotion period; the normal selling price or service supply price before the promotion period; and the selling price or service supply price during the promotion period.

Article 8. Selling merchandise or supplying services with attached purchase vouchers or other forms to win prizes according to announced rules and awards

When applying this form of promotion, merchants must:

1. Clearly and specifically announce the purchase vouchers, prizes, methods of determining winners, and print them on the vouchers or post them at the sales location or service supply location;

2. Report the results of the winners according to the announced rules to the Department of Commerce where the merchant organizes the promotion within thirty days from the end of the promotion period; and simultaneously announce the results of the winners on at least one mass media outlet.

Article 9. Selling merchandise or supplying services with attached contest entry forms for customers to choose the prize-giver according to announced rules and awards

When applying this form of promotion, merchants must:

1. Clearly and specifically announce the prizes, draw methods, and methods of determining winners on the contest entry forms and must announce them on at least one mass media outlet. The content of the contest entry forms must include issues related to merchandise and services and other issues but must not contradict Vietnamese historical traditions, culture, ethics, and customs;

2. Report the results of the winners according to the announced rules to the Department of Commerce where the merchant organizes the promotion within thirty days from the end of the promotion period; and simultaneously announce the results of the winners on at least one mass media outlet.

Article 10. Selling merchandise or supplying services with attached lottery tickets to participate in draws according to announced rules and awards

1. The sale of merchandise or supply of services with attached lottery tickets for participation in draws must comply with the following regulations:

a) Must be approved by the state management agency for commerce as stipulated in Clause 2 of this Article;

b) Lottery tickets for participation in draws must have a different format from the national lotto tickets issued exclusively by the State; must contain all necessary information about the promotion program, the number of lottery tickets issued, the number of prizes, the value of each type of prize, the awarding location, and the time and place of the draw; can only be issued based on the merchandise sold or services supplied and must be canceled after each promotion program;

c) Shall not use the results of the national lotto to determine the promotion results;

d) The draw can only be conducted after canceling the unused lottery tickets; must be witnessed by the state management agency for commerce that has approved the promotion activity and a customer representative;

đ) The results of the winners must be recorded in a protocol and publicly announced;

e) Report the results of implementing the promotion program to the approving agency within thirty days from the end of the promotion period.

2. Procedures for organizing promotions in the form of selling merchandise or supplying services with attached lottery tickets for participation in draws:

a) For promotions within the scope of one province or centrally-administered city, merchants must submit the application file to the Department of Commerce at least fifteen days before the start of the promotion;

b) For promotions within the same period across two or more provinces or centrally-administered cities, merchants must submit the application file to the Ministry of Commerce at least fifteen days before the start of the promotion;

c) The application file for organizing promotions includes:

- A request to organize promotions in the form of lottery tickets. The content includes: Promotional merchandise and services; merchandise and services for promotions; promotion period; location of promotion organization; draw organizing committee members; prizes; awarding location.

- The contest rules.

d) The state management agency for trade prescribed in Points a and b Clause 2 of this Article shall examine and approve in writing the trader organizing a promotional event in the form of lottery tickets within seven working days from the date of receipt of complete valid documents. In case of disapproval, it must provide a written response within the aforementioned time limit and clearly state the reasons.

Chapter 3:

COMMERCIAL ADVERTISING AND BUSINESS OF PROVIDING COMMERCIAL ADVERTISING SERVICES

PART 1

RIGHTS TO COMMERCIAL ADVERTISING

Article 11. Commercial advertising of Vietnamese traders

Individuals, legal entities, cooperative organizations, and family households that are traders as defined by the Trade Law have the right to directly advertise their production, business operations, goods, and commercial services provided by themselves or to hire organizations providing advertising services to carry out commercial advertising on their behalf.

Article 12. Commercial advertising of foreign-invested enterprises

Foreign-invested enterprises have the right to directly advertise their production, business operations, goods, and commercial services provided by themselves or to hire organizations providing advertising services to carry out commercial advertising on their behalf, in accordance with the Investment License.

Article 13. Commercial advertising of foreign traders in Vietnam.

1. Foreign traders having representative offices or branches permitted to operate in Vietnam may directly advertise their production, business operations, goods, and commercial services in Vietnam or hire Vietnamese organizations providing advertising services to carry out such activities in accordance with the provisions of this Decree.

2. Foreign traders without representative offices or branches permitted to operate in Vietnam wishing to advertise their production, business operations, goods, and commercial services in Vietnam must hire Vietnamese organizations providing advertising services to carry out such activities in accordance with the provisions of this Decree.

PART 2

GOODS AND SERVICES FOR ADVERTISING; PRODUCTS OF COMMERCIAL ADVERTISING

Article 14. Goods and commercial services permitted to be advertised

Traders mentioned in Articles 11, 12, and 13 of this Decree may advertise goods not prohibited from circulation and commercial services not prohibited from provision under Vietnamese law at the time of advertising.

Article 15. Prohibited goods and commercial services from being advertised

Advertising of the following goods and commercial services is prohibited:

1. Goods prohibited from circulation and commercial services prohibited from provision under the law.

2. Products and goods not yet permitted to circulate and commercial services not yet permitted to be provided under the law at the time of advertising.

Article 16. Advertising of goods and commercial services subject to restricted business

Advertising of goods and commercial services subject to restricted business under the law must be approved by the Ministry of Trade.

Article 17. Advertising of goods not yet imported and commercial services not yet provided in Vietnam

Goods not yet imported and commercial services not yet provided in Vietnam wishing to be advertised in Vietnam must be goods and commercial services not prohibited from advertising as stipulated in Article 15 of this Decree.

Article 18. Requirements for truthfulness and accuracy in advertising

The specifications, quality, price, utility, design, type, packaging, service methods, and warranty period of goods and commercial services advertised must correspond to those of the actual goods and commercial services sold or supplied on the market.

Article 19. Advertising using trademarks, symbols, and names of production and business establishments, commercial service providers

Trademarks, symbols, and names of production and business establishments, commercial service providers used in advertising must belong to the advertiser or be accepted by the legitimate owner. The trader requesting advertising must bear responsibility for the use of trademarks, symbols, and names of production and business establishments, commercial service providers.

Article 20. Products of commercial advertising, advertising locations, and means of commercial advertising

1. The use of forms, images, actions, sounds, voices, writings, symbols, colors, and lighting to advertise goods and commercial services must comply with Vietnamese laws.

2. Advertising locations must comply with urban planning, local construction regulations, and guidance from relevant agencies; they must not negatively impact the landscape, environment, traffic safety, and social security.

3. The use of means of commercial advertising must comply with the provisions of Article 190 and 193 of the Trade Law.

The Ministry of Culture and Information shall coordinate with relevant agencies to provide detailed guidance on implementing the provisions of this Article.

PART 3

BUSINESS OF PROVIDING COMMERCIAL ADVERTISING SERVICES

Article 21. Regulations for traders engaged in the business of providing commercial advertising services

1. It is a business established in accordance with the law;

2. It is an independent business specializing in providing commercial advertising services;

3. It does not engage in the sale of goods except for the purchase and sale of machinery, equipment, and materials necessary for its business.

Article 22. Contract for commercial advertising services

Contracts for commercial advertising services; rights and obligations of the advertiser and the provider of commercial advertising services are carried out according to Articles 195, 196, and 197 of the Trade Law.

PART 4

STATE MANAGEMENT OVER COMMERCIAL ADVERTISING ACTIVITIES AND THE BUSINESS OF PROVIDING COMMERCIAL ADVERTISING SERVICES

Article 23. Responsibilities of the Ministry of Trade

The Ministry of Trade, as the state management agency for commercial advertising, is responsible for:

1. Drafting and submitting to the Government for promulgation or promulgating within its authority legal regulatory documents on commercial advertising.

2. Coordinating with the Ministry of Culture and Information and other relevant agencies to guide the implementation of regulations on commercial advertising.

3. Inspecting and supervising the implementation of legal regulations on commercial advertising and handling violations related to commercial advertising within its authority.

Article 24. Responsibilities of the Ministry of Culture and Information

The Ministry of Culture and Information shall be responsible for leading and coordinating with relevant agencies to develop and submit to the Government for issuance or issue within its authority consolidated documents on commercial advertising products, commercial advertising media, and the use of commercial advertising media as stipulated in Article 20 of this Decree, to ensure a healthy advertising environment in compliance with Vietnamese law.

Article 25. Responsibilities of People's Committees of Provinces and Municipalities Directly Under the Central Government

Provincial People's Committees directly under the Central Government shall be responsible for directing the Department of Commerce:

1. To inspect and supervise the implementation of laws on commercial advertising and handle violations of commercial advertising within their localities.

2. To report annually to the Ministry of Commerce on the results of commercial advertising activities in their localities.

Chapter 4:

FAIRS AND TRADE EXHIBITIONS

PART 1

BUSINESS OF FAIR AND TRADE EXHIBITION SERVICES

Article 26. Regulations for traders conducting fair and trade exhibition services

1. They must be enterprises established in accordance with the law.

2. They must be independent enterprises specializing in providing fair and trade exhibition services.

3. They shall not engage in goods trading activities except for purchasing machinery, equipment, and materials necessary for their business operations.

PART 2

CONTRACTS FOR FAIR AND TRADE EXHIBITION SERVICES

Article 27. Contracts for fair and trade exhibition services

Contracts for fair and trade exhibition services must be documented in writing and include the following main contents:

1. Names and addresses of the parties signing the contract;

2. Service content;

3. Location and time of service provision;

4. Service fees and other costs.

Article 28. Rights and obligations of the parties in contracts for fair and trade exhibition services

1. The rights and obligations of the service provider are regulated in Article 218 of the Commercial Law.

2. The rights and obligations of the service user are as follows:

a) To provide sufficient goods, product information, or means to the service provider according to the contract;

b) To provide information about goods and other necessary means agreed upon in the contract;

c) To check the performance of the contract;

d) To pay service fees and other costs as stipulated in the contract.

PART 3

GOODS PARTICIPATING IN FAIRS AND TRADE EXHIBITIONS

Article 29. Imported goods participating in domestic fairs and exhibitions.

1. Imported goods for participation in fair and trade exhibitions must not fall under the list of prohibited imports in Vietnam; pharmaceutical products must be included in the list registered with the Ministry of Health.

2. The quantity of imported goods for participation in fair and trade exhibitions shall not exceed five units per product type; if exceeding five units per product type, approval from the Ministry of Commerce is required.

3. Imported goods participating in fair and trade exhibitions must be re-exported within thirty days from the end date of the fair or trade exhibition. If re-exportation is not possible within this period, the trader must submit a written request to the Ministry of Commerce for extension; each extension period shall not exceed thirty days from the expiration date and shall not be extended more than three times.

Article 30. Domestic goods participating in foreign fairs and exhibitions.

Goods of Vietnamese traders participating in foreign fair and trade exhibitions must not fall under the list of prohibited exports in Vietnam, except where permitted by the Prime Minister.

Article 31. Sale of goods participating in fairs and exhibitions during the organization period and after the conclusion of the fairs and exhibitions

1. Goods temporarily imported into Vietnam to participate in fair and trade exhibitions but not re-exported and sold or given away in Vietnam must comply with the following provisions:

a) Must obtain written approval from the Ministry of Commerce;

b) Must pay taxes and other financial obligations as prescribed by Vietnamese law;

2. Goods temporarily exported to participate in fair and trade exhibitions may be sold abroad and must pay taxes as prescribed by Vietnamese law.

PART 4

 STATE MANAGEMENT OF FAIR AND TRADE EXHIBITION ACTIVITIES

Article 32. Responsibilities of the Ministry of Trade

1. Approving plans for organizing overseas fairs and trade exhibitions by Vietnamese traders engaged in fair and trade exhibition services.

2. Inspecting and supervising the implementation of laws on fair and trade exhibitions and handling violations of fair and trade exhibition laws within its jurisdiction nationwide.

Article 33. Responsibilities of provincial people's committees directly under the central government

Provincial People's Committees directly under the Central Government shall be responsible for directing the Department of Commerce:

1. Approving plans for organizing fair and trade exhibitions by traders engaged in fair and trade exhibition services in their provinces or cities;

2. Inspecting and supervising the implementation of laws on fair and trade exhibitions and handling violations of fair and trade exhibition laws in their localities;

3. Reporting annually to the Ministry of Commerce on plans and results of fair and trade exhibition activities in their localities.

Chapter 5:

HANDLING VIOLATIONS

Article 34. Handling violations by traders

Traders violating the provisions of this Decree will be subject to administrative penalties or criminal prosecution depending on the severity of the violation, as prescribed by law.

Article 35. Handling violations by state officials and civil servants

State officials and civil servants who abuse their positions or powers to violate the provisions of this Decree will be subject to administrative penalties or criminal prosecution depending on the severity of the violation, as prescribed by law.

Chapter 6:

IMPLEMENTING PROVISIONS

Article 36. Effectiveness

1. This Decree shall take effect thirty days from the date of signature.

Abolishing the issuance of business licenses and practice permits for traders engaged in advertising services and fair and trade exhibition services. All previous regulations contrary to the provisions of this Decree are hereby abolished.

2. Ministers, heads of ministerial-level agencies, heads of agencies under the Government, and Chairmen of People's Committees of provinces and centrally governed cities shall be responsible for guiding the implementation of this Decree.