1. Who is eligible for promotion?

According to the provisions of Article 2 Decree 81/2018/ND-CP, subjects eligible for promotion policies are classified as follows:

- Traders that produce and trade goods and services directly: This includes businesses and individuals that produce and trade goods and services directly and carry out promotional programs. These merchants have the right to implement promotions themselves or conduct promotions through distribution merchants, including wholesalers, retailers, agents, franchisees and other distribution merchants according to regulations. under the law.

- Merchants providing promotional services: This group is businesses and individuals specializing in promotional services, and conducting promotions for the goods and services of other merchants according to agreements with the merchant. By the way, This means that traders providing promotional services can provide promotional services to other businesses that are not the owners of those goods or services. This often happens when businesses need to use promotional services from experts or professional promotional service business units.

This shows that those who can implement promotional policies include traders who produce and sell goods and direct services and traders who provide promotional services. The application of promotions to these subjects is carried out based on the provisions in Decree 81/2018/ND-CP, to create favorable conditions for economic development, promote consumption and enhance competition in the business sector.

2. Which products cannot be used for promotions?

According to the provisions of Article 5 ofDecree 81/2018/ND-CP Regarding promotional goods and services, there are some types of products that cannot be used for promotions. This is to ensure fairness and ensure consumers' rights.

- According to Clause 1, Article 5, the following types of goods and services are not eligible for promotion: alcohol, lotteries, cigarettes, breast milk substitutes, human medicines (including have been allowed to circulate according to regulations of the Ministry of Health), medical examination and treatment services of public medical establishments, educational services of public establishments, public vocational education establishments, goods and services. Services are prohibited from circulation in Vietnam, and other goods and services are prohibited from promotion according to the provisions of law.

- Similarly, according to Clause 2, Article 5, the following types of goods and services cannot be used for promotion: alcohol, lotteries, cigarettes, human medicines (including approved medicines). circulation permit according to regulations of the Ministry of Health), goods and services prohibited from circulation in Vietnam, and other goods and services prohibited from promotion according to the provisions of law.

- In addition, according to Clause 3 of Article 5, money can also be used as a good or service for promotion, except for the cases specified in Articles 8, 10 and 11 of this Decree. .

In short, the list of products that cannot be used in promotional activities is clearly mentioned in Clauses 1 and 2 of Article 5 of this Law.Decree 81/2018/ND-CP.

3. What to do when you want to organize a promotion program?

To organize a promotional program, according to the regulations ofDecree 81/2018/ND-CP, traders must comply with the following obligations:

- For the cases specified in Point a, Clause 1, Article 2 of this Decree, traders must take the following steps:
 + Notify and register promotion programs with competent state agencies.
 + Take full responsibility before the law and customers for promotional programs, except in cases of hiring traders to provide services as prescribed in Point b, Clause 1, Article 2 of this Decree.
 + Provide complete, accurate and clear public information as prescribed in Article 97 of the Commercial Law to customers, distributors and related parties.
 + Comply with other obligations as prescribed in Article 96 of the Commercial Law and this Decree.

- For the cases specified in Point b, Clause 1, Article 2 of this Decree, traders must comply with the following obligations:
 + Comply with the obligations prescribed in Clause 5, Article 96 of the Commercial Law and this Decree.
 + Be responsible before the law and customers for activities within the scope of the promotional service contract.

In addition, according to Clause 1, Article 17 of Decree 81/2018/ND-CP, traders need to notify promotional activities according to administrative procedures. Traders must send documents notifying promotional activities to the Department of Industry and Trade of the locality where the program is organized before implementing the promotion. The deadline for submitting documents is at least 03 working days before the promotion date (calculated from the date of receipt recorded on the postal bill of lading or equivalent form if sent by post, or from the date recorded on the receipt of the application). if submitted directly, or from the time recorded on the email system or online public service system).

Therefore, to organize a promotional program, traders need to comply with regulations related to notification, registration and implementation of promotional programs, specifically as stipulated in Clause 1, Article 17 of the Law.Decree 81/2018/ND-CP.

4. What is the maximum value of goods used for promotion?

The maximum limit on the value of goods used for promotion is specified in Article 6 of theDecree 81/2018/ND-CP according to the following:

- The material value used to promote a unit of goods or services must not exceed 50% of the value of the unit of goods or services being promoted before the time of promotion, unless otherwise specified. Other regulations according to Clause 8, Article 92 of the Commercial Law, Article 8, Clause 2, Article 9, Article 12, Article 13 and Article 14 of Decree 81/2018/ND-CP.

- The total value of goods and services used for promotion in a promotion must not exceed 50% of the total value of the goods and services being promoted, unless otherwise specified under clause 8 Article 92 of the Commercial Law, Article 8 and Clause 2, Article 9 of Decree 81/2018/ND-CP.

- The value of goods and services used for promotion is determined based on the following cases:

In case the trader does not directly produce or import goods or does not directly provide services used for promotion, the value is calculated according to the price paid by the trader to purchase the goods and services used. for promotion or according to the market price of goods and services used for promotion at the time of announcement;

Goods and services used for promotion are goods that the trader himself produces, imports or provides services, the value is calculated according to the cost or import price of the goods and services used. for promotion.

- In the case of organizing a concentrated promotion program such as hourly, daily, weekly, monthly or promotional season, the maximum limit on the value of goods and services used for promotion is 100%. The maximum limit of 100% is also applied to promotional activities within the framework of trade promotion programs and activities decided by the Prime Minister.

- The concentrated promotion program is regulated as follows:

The program is organized by state agencies (central and provincial levels) over a specified period of time, in the form of hours, days, weeks, months or promotional seasons to implement economic development policies. has national and local goals. The State encourages the organization of centralized promotional programs and all traders are allowed to participate in these programs. Promotions during holidays are regulated according to labor law including:

Promotion during Lunar New Year: lasts within 30 days before the first day of the lunar year.

Promotions during other holidays and New Year. The promotional period of each period must not exceed the corresponding holiday period according to the provisions of labor law.

Above are the regulations on maximum limits on the value of goods used for promotionsDecree 81/2018/ND-CP. These regulations are intended to ensure fairness in promotional activities and limit unfair competition practices. Traders need to comply with this regulation to ensure compliance with the law and create favorable conditions for consumers in the process of purchasing and using goods and services.