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Official Gazette

Monday, January 30, 2023

Draft decree on trade promotion

Updated: 15:42’ - 09/08/2005

The Trade Ministry has recently organized a conference to gather opinions on the draft decree on trade promotion, in preparation for the enforcement of the Commercial Law next year.

The draft specifies trade promotion activities, including sale promotion, trade fairs and exhibitions for goods and service introduction.

To protect customers’ interests, the draft bans all acts of providing sale promotion by abusing customers’ trust as well as their lack of experience and understanding, exaggerating the value of goods and services, hindering the actual sale prices for sale promotion, abusing sale promotion to make comparison to competitors’ goods or services, and requiring customers to pay a money amount or perform a financial obligation for participation in sale promotion programs.

Under the draft, goods being promoted cannot be sold at less than 50% of their value.

The regulations aim to prevent giant international conglomerates from swallowing local small- and medium-sized enterprises by dropping prices to win market share or dominate the market, and regards any business cutting price by 30% as making a move to dump the product on the market, said drafters.

The draft says the duration of product promotion must not last longer than 90 days in one year and not exceed 45 days for each promotion campaign. The interval between two programs to promote the same product or service must be at least one month.

In terms of advertising, the draft requires enterprises to apply for permission for each advertisement.

The draft is expected to be completed by October.-

VNL_KH1 

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