Legal basis

• Law Commercial 2005;
• Decree No. 81/2018/NĐ-CP dated 22/5/2018 Elaboration of regulations of Commercial Law on Trade promotion.

1. Definition of Trade Promotion 

According to Article 3.10 Law Commercial 2005 regulated that commercial promotion means activities of promoting and seeking opportunities for the purchase or sale of goods and provision of services, including sales promotion, commercial advertisement, display and exhibition of goods and services, and trade fairs and exhibitions.

2. Trade promotion activities

2.1. Sales promotion

According to Article 88 Law Commercial 2005:

• Sales 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.
• Traders conducting sales promotion are those falling into one of the following cases:
  • Traders directly conduct sales promotion for goods and/or services that they trade in;
  • Traders engaged in providing sales promotion services conduct sales promotion for goods and/or services of other traders under an agreement with the latter.

According to Article 92 Law Commercial 2005, guided by Decree 81/2018/ND-CP dated May 22, 2018, the forms of sales promotion include:

• Giving samples of goods or providing samples of services to customers for trial use free of charge.
• Gifting goods as gifts or providing free-of-charge services to customers.
• Selling goods or providing services at prices lower than goods sale prices or service provision charge rates previously applied during the period of sales promotion already registered or announced. In case of goods or services subject to the State management over their prices, the sales promotion in this form shall comply with regulations of the Government.
• Selling goods or providing services together with coupons that allow customers to enjoy one or several benefits.
• Selling goods or providing services together with prize-contest entrance tickets to customers, for purpose of selecting prize winners according to the rules and prizes already announced.
• Selling goods or providing services together with opportunities for customers to participate in games of chance, the participation in which comes after the purchase of goods or services and the winning of prizes depends on the luck of participants according to the rules and prizes already announced.
• Organizing programs for frequent customers whereby gifts are presented to customers on the basis of the quantities or values of goods purchased or services used by such customers and expressed in forms of customers’ cards, coupons acknowledging the purchase of goods or services, or other forms.
• Organizing cultural, artistic or entertainment programs or other events for customers for the purpose of sales promotion.
• Other forms of sales promotion if approved by the State management agency in charge of commerce.

2.2. Commercial advertising

According to Article 102 Law Commercial 2005 regulated that commercial advertising means commercial promotion activities of traders aimed at introducing to customers their goods and service business activities.

According to Article 103 Law Commercial 2005 regulated about right to commercial advertising specifically:

• Vietnamese traders, branches of Vietnamese traders and branches of foreign traders licensed to conduct commercial activities in Vietnam shall have the right to advertise their goods and/or service business activities or to hire traders providing advertising services to do so for them.
• Representative offices of traders must not directly conduct commercial advertising activities. When being authorized by traders, representative offices may sign contracts with traders providing commercial advertising services to advertise for the traders they are representing.
• Foreign traders who wish to commercially advertise their goods and/or service business activities in Vietnam shall have to hire Vietnamese traders engaged in business of providing commercial advertising services to do so.

According to Article 106.2 Law Commercial 2005 regulated means of commercial advertising includes:

• The mass media;
• Means of communications;
• Publications of all kinds;
• All kinds of boards, signs, banners, panels, posters, fixed objects or means of transportation and other movable objects;
• Other means of commercial advertising.

2.3. Display and introduction of goods and services

According to Article 117 Law Commercial 2005 regulated that Display and introduction of goods and services mean commercial promotion activities of traders that use goods and/or services and documents thereon to introduce such goods and/or services to customers.

According to Article 118 Law Commercial 2005 regulated right to display and introduce goods and services:

• Vietnamese traders, branches of Vietnamese traders and Vietnam-based branches of foreign traders shall have the right to display and introduce goods and/or services; to select appropriate forms of display and introduction; to organize by themselves or hire traders providing goods/service display and introduction services to display and introduce their goods and/or services.
• Representative offices of traders shall not be allowed to directly display and introduce goods and/or services of traders they are representing, except for displays and introductions at their offices. When being authorized by traders, representative offices shall have the right to enter into contracts with traders providing goods/service display and introduction services for the display and introduction of goods and/or services of traders they are representing.
• Foreign traders not yet licensed to conduct commercial activities in Vietnam and wishing to display and introduce their goods and/or services in Vietnam must hire Vietnamese traders providing goods/service display and introduction services to do so.

According to Article 120 Law Commercial 2005 regulated forms of display and introduction of goods and services:

• Opening showrooms for displaying and introducing goods and/or services.
• Displaying and introducing goods and/or services at trade centers or in entertainment, sport, cultural or artistic activities.
• Organizing conferences and seminars involving the display and introduction of goods and/or services.
• Displaying and introducing goods and/or services online and in other forms specified by law.

2.4. Trade fairs and exhibitions

According to Article 129 Law Commercial 2005 regulated that Trade fairs and exhibitions mean commercial promotion activities conducted in a concentrated manner at particular locations and for given periods of time for traders to display and introduce their goods and/or services for the purpose of promoting them and seeking opportunities for entering into contracts for sale and purchase of goods or service contracts.

According to Article 131 Law Commercial 2005 regulated rights to organize or participate in trade fairs and exhibitions:

• Vietnamese traders, branches of Vietnamese traders, Vietnam-based branches of foreign traders shall have the right to directly organize or participate in trade fairs and exhibitions for goods and/or services they trade in or hire traders providing trade fair and exhibition services to do so.
• Representative offices of traders shall not be allowed to directly organize or participate in trade fairs and exhibitions. When being authorized by traders, representative offices shall have the right to sign contracts with traders providing trade fair and exhibition services to do so for the traders they are representing.
• Foreign traders shall have the right to directly participate or hire Vietnamese traders providing trade fair and exhibition services to participate, on their behalf, in trade fairs and exhibitions in Vietnam. Where they wish to organize trade fairs and exhibitions in Vietnam, foreign traders must hire Vietnamese traders providing trade fair and exhibition services to do so.