Circular No. 37/VHTT-TT guiding the implementation of Decree No. 194/CP dated December 31, 1994 of the Government on advertising activities within the territory of Vietnam

CIRCULAR

OF THE MINISTRY OF CULTURE AND INFORMATION

Guidelines for implementing Decree No. 194/CP

dated December 31, 1994 of the Government on advertising activities within the territory of Vietnam

Pursuant to Article 18 of Decree No. 194/CP;

After exchanging opinions with relevant Ministries and Agencies: Ministry of Health, Ministry of Transport, Ministry of Trade, Ministry of Science, Technology and Environment, Ministry of Construction, Ministry of Finance, State Committee on Investment, General Police Department;

The Ministry of Culture and Information provides specific guidance on certain points for the implementation of Decree No. 194/CP as follows:

 

I. GENERAL ISSUES:

Article 1:

Some concepts in the Decree are understood as follows:

- Headquarters of state management agencies at all levels (Clause 11, Article 6 of the Decree) include legislative bodies, executive bodies, judicial bodies, and political mass organizations.

- Placing before and obscuring existing advertisements: (Clause 11, Article 6 of the Decree) means that when viewed from the center of the road facing the existing advertisement, the new advertisement does not obscure more than 10% of the area of the existing advertisement.

- Accompanying advertising content (Clause 4, Article 7 of the Decree) refers to posters, banners, signs, pictures, flags, slogans promoting exhibitions, art festivals, fashion shows, sports competitions, or other forms that may also display symbols, images, or names of advertisers (or sponsors).

- A period (Clause 1a, Article 8 of the Decree) is the maximum duration for continuous advertising on daily newspapers, radio, and television. The minimum interval between two periods for the same advertisement is five days.

The duration of advertising in music tapes, video tapes, films shall not exceed 5% of the total program duration.

- Sign (Clause 3, Article 7 of the Decree) is intended to introduce the name, symbol, brand of products or services of production and business units. Signs can only be hung at the premises themselves, within the range from the canopy inward. They cannot be placed on sidewalks or hung on tree trunks or utility poles.

Article 2:

Some concepts in the Decree have been modified to align with professional standards or new regulations stipulated in the Decree, specifically as follows:

Quality registration certificate or Certificate of compliance with national regulations replaces the Quality standard certification certificate specified in Clause 2, Article 9 and Article 17 of the Decree.

- Advertising practice qualification certificate replaces the Business license stipulated in Article 11 of the Decree.

- Customer is also understood as Advertiser for advertising service providers.

II. REGARDING THE CONTENT, FORM AND SCOPE OF ADVERTISING.

Article 3:

Advertising content (including information about product features, effects, quality, and images, language expressions) must be recognized by competent authorities, specifically:

1. For domestically produced goods:

a. Products and goods listed in the mandatory registration of quality (announced by the Ministry of Science, Technology and Environment) must obtain a quality registration certificate from the authority responsible for standardization, measurement, and quality control.

b. Products and goods listed in the mandatory conformity assessment to Vietnamese Technical Regulations (Vietnamese Standards - TCVN) must obtain a conformity certificate to TCVN from the National Standardization, Measurement, and Quality Control Agency.

2. For imported goods subject to mandatory quality inspection, they must be inspected and issued a certificate of compliance with national regulations by the designated inspection agency (National Standardization, Measurement, and Quality Control Agency).

3. Advertising of pharmaceuticals (medicines and raw materials for medicines), cosmetics must be reviewed and approved by the Ministry of Health according to conditions and procedures set out in the Regulation on drug information for disease prevention and treatment issued by Decision No. 646/BYT-QĐ dated August 16, 1993.

4. Advertising of biological products for agriculture, animal husbandry, livestock feed, veterinary drugs, plant protection chemicals, seeds, and breeds must comply with regulations of the Ministry of Agriculture and Food Industry.

5. Trademarks, service marks, industrial designs, utility models, inventions must be registered by the Intellectual Property Office under the Ministry of Science, Technology and Environment with corresponding certificates as follows:

a. Certificate of protection (Trademark Registration Certificate, Industrial Design Registration Certificate; Utility Model Patent Certificate; Invention Patent Certificate);

b. Certificate of registration of license contracts for the use of corresponding intellectual property objects (referred to as license agreements);

c. Confirmation of the protected intellectual property object in Vietnam pursuant to international treaties to which Vietnam is a party.

6. Advertising of enterprises, companies, service establishments, vocational training institutions, labor recruitment, or similar activities must be accompanied by a business registration certificate or a decision issued by the competent specialized management agency.

Article 4:

Enterprises and companies permitted to operate multiple industries, products, or items under a single brand (company name) must clearly specify the industry, product, or item being advertised.

For example, Dunhill jewelry, Lotaba soft drinks, Marlboro clothing. It is not allowed to advertise only the brand name Dunhill, Lotaba, Marlboro.

Article 5:

Prohibiting the advertising of goods banned or restricted for consumption by the state as stipulated in Clause 4, Article 6 of the Decree. Implementation follows decisions made by competent state management agencies during specific periods.

Currently, advertising in any form is prohibited for the following items:

- All types of tobacco products.

- All types of alcohol.

- Medications sold by prescription (prescription drugs) that have not been registered, have expired registration, or have been removed from the list of approved uses (according to Article 14 of the Regulation on drug information for disease prevention and treatment).

- Medications for humans and animals, plant protection chemicals, and medical equipment not yet permitted for use in Vietnam (according to Decree No. 02/CP dated January 5, 1995 on goods and services prohibited from commercial trade).

Article 6:

The spoken and written language in advertising (Clause 3, Article 5 of the Decree) also applies to all signs and boards.

III. CONDITIONS AND PROCEDURES FOR ADVERTISING ACTIVITIES

Article 7:

The advertiser is the person who has the need to introduce their goods, products, and facilities through various advertising forms. The advertiser may directly implement advertising forms for their own goods and products at production facilities and on their own means but must comply with the provisions of Clause 1, Article 9, Article 12 of the Decree and pay taxes as prescribed.

Article 8:

1. State-owned enterprises, companies, private businesses, and individual households wishing to provide advertising services or supplement advertising functions must be granted a certificate of qualification for advertising practice by the Ministry of Culture and Information or the Department of Culture and Information before being issued a business license by the competent authority.

2. Vietnamese advertising companies are permitted to cooperate with foreign organizations and individuals in providing advertising services under joint venture contracts according to the Law on Foreign Investment in Vietnam for a maximum period of five years.

Article 9:

Conditions for obtaining a certificate of qualification for advertising practice:

1. For state-owned enterprises, private businesses, and joint-stock companies, limited liability companies:

- Must have the statutory capital as stipulated by current laws.

- Must have personnel with a level of expertise from a college degree upwards in fields such as fine arts, design, economics, commerce, law, and technology.

- Must have headquarters, buildings (or workshops), material resources, and means of practice corresponding to the scope of operation and capable of implementing all advertising service procedures.

2. For individual households operating below the statutory capital:

- The practitioner must have expertise in fine arts and technology and must have a location and primary means of practice.

- May only perform small services such as artistic decoration; drawing signboards, producing small promotional items (such as bags, flyers, posters, hats, shirts, flags with promotional content) when the advertiser has the necessary documentation as prescribed.

3. Press agencies providing advertising services must comply with the Press Law.

4. Publishers and organizations permitted to engage in publishing activities providing advertising services must comply with the Publishing Law.

Article 10:

Procedures for applying for a certificate of qualification for advertising practice.

Applicants for a certificate must submit the application to the Ministry of Culture and Information or the Department of Culture and Information as specified in Article 12 of this Circular:

The documents include:

1. An application form for advertising practice permission according to a unified model (Annex 1).

2. The statutory capital level confirmed by the competent authority.

3. Confirmation of the transaction office location by the competent authority managing it.

4. Certified copies of professional certificates of the main practitioners.

5. A list of equipment, material resources, technical facilities, and means of practice.

6. For businesses already holding a business license, they must also provide certified copies of the establishment decision and business registration of the enterprise.

Article 11:

Procedures for applying for advertising implementation permission:

1. All advertisements containing content as specified in Clauses 1, 2, 3, and 4 of Article 3 of this Circular, expressed in any form or medium, except for those in newspapers and Clauses 5 and 6 of Article 3 of the Circular if displayed in the form of billboards, posters, tapes, signs, must submit an application for each advertisement according to the provisions of Article 12 and 13 of the Decree. The application form follows a unified model (Annex 2).

2. The review of content and form of advertisements in newspapers and publications is the responsibility of the Chief Editor of the press agency and the Director of the Publisher according to the provisions of Decree 194 and this Circular.

In cases where press agencies require additional advertising space or time beyond the prescribed limits, they must apply for permission to publish additional supplements, special editions, or dedicated advertising channels.

3. For advertisements in the form of billboards, posters, and signboards, the application must include:

- Permission from the competent state management authority for traffic facility protection if the advertisement is erected within the protected area of traffic facilities as stipulated in Clause 7, Article 21 of the Traffic Facility Protection Ordinance.

- If the advertisement has a large size affecting urban architecture and street aesthetics (as defined by localities), it must have a construction permit from the Chief Architect or the Department of Construction (for cities without a Chief Architect) according to the provisions of Article 31 of the Urban Planning Management Regulation promulgated together with Decision 91/CP dated August 17, 1994 of the Government.

Article 12:

Authority to issue certificates of qualification for advertising practice and advertising implementation permits.

1. The Ministry of Culture and Information issues:

a. Certificate of qualification for advertising practice:

- State-owned enterprises under Ministries and Central Departments.

- Local enterprises seeking to expand operations across multiple regions.

b. Advertising implementation permits:

- Product, goods, and brand name advertisements imported into Vietnam or produced in Vietnam with an area of 100 square meters per side (boards, signs with two or more sides having the same content are considered one side).

- Advertisements on films, cinema, and video tapes.

- Advertisements in publications.

- Permission for press agencies to publish additional supplements, special editions, or dedicated advertising channels.

2. The Department of Culture and Information is responsible for issuing to the People's Committees of provinces and centrally-administered cities:

a. Certificate of qualification for advertising practice:

- State-owned enterprises under provinces and centrally-administered cities upon delegation by the Ministry of Culture and Information.

- Private businesses, joint-stock companies, limited liability companies, and individual households operating below the statutory capital in their locality.

b. Advertising implementation permits:

Products, goods, brands, and types of advertising not within the licensing authority of the Ministry of Culture and Information.

Article 13:

1. Within thirty days from the date of receipt of complete and valid applications for a certificate of qualification for advertising practice, the competent authorities must issue the certificate. If rejected, a written explanation of the reasons must be provided.

2. Organizations and individuals applying for a certificate of qualification for advertising practice and advertising implementation permits must pay the examination fee as guided by the Ministry of Culture and Information and the Ministry of Finance.

3. The advertising practice qualification certificate (according to Model 3) has a validity of three years (36 months); the advertising implementation permit has a maximum validity of one year (12 months) from the date of issuance. When the prescribed period expires, the practitioner or advertiser wishing to continue operations must apply for renewal at the issuing authority.

4. After being issued the advertising practice qualification certificate, the applicant must submit the application file to the competent state agency to obtain the establishment registration certificate or business license according to the Private Enterprise Law, State-Owned Enterprise Law, Company Law, and Decree 66/1992/ND-HĐBT regarding individuals and groups with capital lower than the statutory capital.

5. Only after obtaining the business license and the advertising implementation permit (Annex 4) can the advertising practice entity commence operations.

6. All acts of buying, selling, exchanging, or forging permits are strictly prohibited.

Article 14:

The issuing authority shall implement the following provisions:

1. Publicly display the advertising plan and regulations on procedures and fees.

2. Issue a receipt when the applicant submits complete and valid documents.

3. The permit issuance files must be stored and recorded in the unified form (Annex 5).

Article 15:

Advertising service providers, those leasing locations or means for placing advertisements, must pay taxes according to the current Ordinance.

In addition to the taxes and fees stipulated in this Circular, advertisers are not required to pay any additional amounts or items.

IV. NATIONAL ADMINISTRATIVE LEVELS FOR ADVERTISING MANAGEMENT

Article 16:

The Ministry of Culture and Information is the national administrative body responsible for advertising activities nationwide. It is accountable to the Minister of Culture and Information for managing the following units:

1. Cultural and Information Bureau at the grassroots level:

- Managing state administration over advertising activities nationwide.

- Reviewing applications for certificates of qualification and requests to expand the scope of operations for entities specified in Point a, Clause 1, Article 12 of this Circular.

- Issuing permits for the advertising activities specified in Point b, Clause 1, Article 12, except for advertising in publications and issuing permits for news agencies to add supplements, special editions, and advertising channels.

2. Press Department: manages advertising activities in the press sector.

3. Publishing Department: manages advertising activities in the publishing sector.

4. Film Department: manages advertising activities in the film and video sectors.

5. Performing Arts Department: manages advertising activities in the performing arts sector.

Article 17: Provincial Departments of Culture and Information are accountable to the People's Committees of provinces and centrally-administered cities for implementing the following tasks:

1. Manage advertising activities in the locality.

2. Taking the lead in coordinating with relevant departments to establish advertising plans at the local level, including:

- Planning organizations and individuals engaged in advertising activities.

- Planning areas, streets, and locations permitted for advertising.

- Planning the scale, size, and quantity of various types of advertising in each area to ensure safety in fire prevention, construction structure, urban aesthetics, and traffic safety.

3. Take the lead in coordinating with functional departments in the locality to organize inspections, supervision, and handling of violations as prescribed.

Article 18:

District, County, City, and Town Cultural and Information Offices are accountable to their respective People's Committees for implementing the following tasks:

- Confirming applications for advertising practice qualifications from businesses with capital below the statutory limit for the provincial Department of Culture and Information to issue the certificate of qualification for advertising practice.

- Confirming the layout of outdoor advertising applications according to the local planning for the competent authority to issue the permit.

The confirmation period shall not exceed ten days.

- Leading coordination with functional departments to inspect advertising through billboards, posters, boards, and signs in the locality; identifying violations and recommending appropriate action to the competent authority.

V. INSPECTION AND VIOLATION HANDLING

Article 19:

1. Specialized inspection bodies under the Ministry of Culture and Information are responsible for inspecting advertising activities throughout the country.

2. Specialized cultural and information inspection bodies in provinces and centrally-administered cities are responsible for inspecting advertising activities in their respective localities.

3. Inspection contents include:

- Inspecting the issuance of certificates of qualification for advertising practice and advertising implementation permits by state management bodies.

- Inspecting the implementation of advertising practice and implementation permits by advertising service providers.

- Inspecting the enforcement of the Decree on advertising activities.

Article 20:

Organizations and individuals engaging in advertising who commit administrative violations will be subject to penalties as provided by the Administrative Violation Handling Ordinance, specifically as follows:

- Suspension of operations; removal of illegal advertisements.

- Fines; confiscation of evidence and means of violation.

- Revocation of the practice permit.

Costs for removing illegal advertisements are borne by the organization or individual committing the violation.

Article 21:

1. The authority to impose administrative penalties for advertising violations and the penalty amounts are implemented according to Article 19, Chapter III of the Administrative Violation Handling Ordinance dated November 30, 1989.

2. Organizations and individuals subject to penalties must comply with the penalty decision and have the right to appeal to the competent state authority:

- Appeals against decisions by specialized cultural and information inspectors in provinces and centrally-administered cities should be submitted to the head of the specialized inspectorate under the Ministry of Culture and Information.

- Appeals against decisions by the head of the specialized inspectorate under the Ministry of Culture and Information should be submitted to the Minister of Culture and Information.

3. Organizations and individuals making erroneous penalty decisions causing material damage to advertisers must provide compensation.

VI. IMPLEMENTATION PROVISIONS

Article 22:

This Circular takes effect from the date of issuance. During implementation, if there are issues requiring supplementation or amendment, relevant management bodies and organizations and individuals engaged in advertising must promptly report to the Ministry of Culture and Information.

Article 23:

1. Organizations and individuals already authorized to engage in advertising before June 30, 1995, must re-register with the competent authority issuing the permit as stipulated in Article 12, using the registration form specified in Article 10 of this Circular.

2. After reviewing the re-registration file, the entity meeting the conditions will be issued a new certificate. The review and issuance of the new certificate must be completed before August 31, 1995. As of September 1, 1995, certificates for advertising activities issued before June 30, 1995, shall no longer be valid.

Article 24:

Attached to this Circular are appendices containing forms numbered from 1 to 5.

 

ANNEX 1

APPLICATION FOR ADVERTISING PRACTICE LICENSE

SOCIALIST REPUBLIC OF VIETNAM

Independence - Freedom - Happiness

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APPLICATION FOR PERMIT

ADVERTISING PRACTICE LICENSE

Respectfully submitted to: ...

My name is: …Born on: …

Identity card number: …Issued by the Public Security Office …

Date of issue: …

Permanent address: …

Representing the agency (or business unit): …

........................................................................................................................

After studying Decree No. 194/CP dated December 31, 1994 of the Government "on advertising activities within the territory of Vietnam," Circular No. 37NHTT-TT dated July 1, 1995 of the Ministry of Culture and Information "guiding the implementation of Decree No. 194/CP," and other relevant regulations on advertising activities issued by ministries, sectors, and localities, I hereby submit this application requesting permission to engage in advertising activities in accordance with the following provisions:

1. Name of business establishment, signboard:

Business name: …

Abbreviation: …

2. Main office and production/business location at: …

...................................................................................................

Phone: …

Telex: …Fax:…

3. Branches located at: …

Phone: …

Telex: …

Fax: …

Initial investment capital:

Among which: - Fixed capital: …

- Working capital: …

5. Number of individuals practicing in the unit:

Among them, clearly state the full names, years of birth, educational level, and technical skills of key personnel:

- Director (or business owner, company): …

- Deputy director: …

- Chief accountant: …

- Staff: …

1/ ...........................................................................................

2/ ..........................................................................................

3/ .........................................................................................

6. Competence and fields of advertising activity:

.............................................................................................

............................................................................................

7. Registered area of operation:

............................................................................................

............................................................................................

I hereby commit that if granted a practice license, I will complete all necessary procedures to register my business in accordance with the law.

I hereby guarantee that the information provided above is true. If there is any deception, I will bear legal responsibility.

... Day …month…year 199...

Respectfully,

Confirmation and recommendation

of the supervising authority (or People's Committee)

(Head of the supervising authority)

Signature and stamp

Attached documents:

ANNEX 2

APPLICATION FOR PERMIT TO PROVIDE ADVERTISING SERVICES

 

Issuing Authority Socialist Republic of Vietnam

No.:…Independence - Freedom - Happiness

--------------------------------------

APPLICATION FOR ADVERTISING SERVICE

Respectfully submitted to:...

1. Name of organization (or individual):…

.....................................................................

Address:…

Telephone: …Fax:…

Advertising practice license issued by the Ministry of Culture and Information (Department of Culture and Information) on …/…/year …

Business license issued by…on …/…/199...

2. Request to provide the following advertising services:

-------------------------------------------------------------------------------------------

³ No. ³ Product name ³ Content form ³ Location ³ Size ³ Duration ³

³ goods ³ to be displayed ³ quantity ³ ³

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I solemnly declare that I will comply with Decree No. 194/CP dated December 31, 1994 of the Government regarding advertising activities within the territory of Vietnam and will bear legal responsibility for the content, form, and related issues according to the permit issued.

3. Documents submitted along with this application (if copies, they must be notarized):

- Copy of the advertising practice license (to be submitted once at the issuing authority);

- Copy of the business license (to be submitted once at the issuing authority);

- Copy of the product quality registration or confirmation of compliance with national regulations.

- Sample (makét) or image.

- Copy of the contract between the advertiser and those providing advertising services.

- Copy of the contract between the service provider and the owner or user of the location or means where the advertisement will be placed.

- Layout diagram of the advertisement location confirmed by the District or County Cultural and Information Office.

- Permit from the competent transport, construction authority (if applicable).

…day ... month ... year 199

Applicant (organization or individual)

(Signature, stamp)

ANNEX 3

MODEL CERTIFICATE OF MEETING CONDITIONS FOR ADVERTISING PRACTICE LICENSE

Issuing Authority Socialist Republic of Vietnam

No.: …Independence - Freedom - Happiness

--------------------------------------

…Day ... month ... year 199...

CERTIFICATE OF INSURANCE OR OTHER FINANCIAL SECURITY

MEETING CONDITIONS FOR ADVERTISING PRACTICE LICENSE

(Head of the issuing authority)

- Based on Decree No. 194/CP dated December 31, 1994 of the Government on advertising activities within the territory of Vietnam;

- Based on Circular No. 37/NHTT - TT dated July 1, 1995 of the Ministry of Culture and Information guiding the implementation of Decree No. 194/CP;

- After reviewing the application and files of the entity (individual) (1)

......................................................................

in accordance with the prescribed conditions:

CERTIFICATE

Entity (individual): …

............................................................................................

Business location: …

...........................................................................................

Meets the conditions and is permitted to engage in advertising practice:

- Scope of operation (2): …

..........................................................................................

- Form of operation (3):…

.........................................................................................

(This certificate does not replace the business license and is valid for three years from the date of issuance).

(Head of the authority)

(Signature and Seal)

------------------------

(1) For business entities, clearly state the full name of the Company or enterprise.

For individual businesses, clearly state the full name, gender, age, and place of residence.

(2) Clearly state the geographical area and scope of permitted operations in the locality or multiple localities.

(3) Clearly state the forms of operation (billboards, banners, signs, video displays, etc.) based on the capabilities of the entity.

ANNEX 4

MODEL ADVERTISING IMPLEMENTATION LICENSE

-----------------

Issuing Authority Socialist Republic of Vietnam

No.: .../GP-VHTT Independence - Freedom - Happiness

------------------------------------

...Date...Month...Year 199...

 

LICENSE

TO IMPLEMENT ADVERTISEMENTS

(Head of the issuing authority)

- Based on Decree No. 194/CP dated December 31, 1994 of the Government on advertising activities within the territory of Vietnam;

- Based on Circular No. 37NHTT - TT dated July 1, 1995 of the Ministry of Culture and Information guiding the implementation of Decree No. 194/CP;

- Upon reviewing the application and files submitted by: …

Address: …

Advertising practice license No.: …issued by: …on…

Business license No.:…issued by: …on…

Submitted on: …

 

Pursuant to …;

Article 1: Permitted: …

........................................................................................................

To implement advertising at: …

.......................................................................................................

.......................................................................................................

With the following content: …

......................................................................................................

......................................................................................................

......................................................................................................

......................................................................................................

- Display form:

......................................................................................................

.....................................................................................................

.....................................................................................................

- Size, quantity:

.....................................................................................................

.....................................................................................................

Duration:

.....................................................................................................

Article 2: Upon receiving this license, the person implementing the advertising must:

1. Fully comply with the provisions of Decree No. 194/CP and other regulations on advertising activities issued by competent authorities.

2. Strictly adhere to the terms stated in the license and bear legal responsibility for the content, form, and issues specified in Article 1.

3. Not transfer the license under any form or pretext.

Article 3: This permit shall be issued in four copies (two copies to be given to the applicant unit and two copies to be retained by the issuing authority). If the permit holder does not implement within fifteen days from the date of issuance, the permit shall become invalid.

Head of the agency

(signature, stamp)

ANNEX 5

MODEL LICENSE MONITORING BOOK FOR ADVERTISING IMPLEMENTATION

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Cover page: (Name of the issuing authority)

BOOK

LICENSE MONITORING FOR ADVERTISING IMPLEMENTATION

Year 199...

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Inner pages: