During commercial activities, promotion is considered as a tool attracting customers and increase sales and revenues and bring more benefits to the company. This is also a way competitors compete with each other to get more customers.
In accordance with Clause 1 Article 88 the Law on Commerce 2005, promotion means: “activities of commercial promotion conducted by traders to promote the purchase and sales of goods or provision of services by offering certain benefits to customers”.
Performers of promotion:
- Traders directly conduct promotion for their goods and/or services;
- Traders providing promotion services for goods, services of other traders on the basis of a written contract or equal legal formality.
Promotion formalities:
- Providing samples of goods or services to customers for trial use free of charge;
- Presenting goods as gifts or providing free-of-charge services to customers;
- Selling goods or providing services at lower prices than the applied prices before during the registered or announced promotion period. In case the prices of goods or services are subjected to State management, 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 to customer for the 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 after they purchase goods or services and the chance of winning depends on the luck of participants according to the rules and prizes already announced;
- Organizing programs for frequent customers whereby gift are presented to customers of 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 entertaining programs or other events for customers for the purpose of promotion;
- Other forms of promotion if approved by the State agencies.
Announcement of conducting promotion:
Information have to be published:
- Name of promotion activities;
- Sale prices or charge rates of promoted goods/services and related delivery costs;
- Name, address and telephone numbers of traders conducting the promotion;
- Duration of promotion, starting date and ending date and area of promotion;
- Where benefits of the participation in promotion depend on specific conditions, notices must be clearly state that promotion is conditional and contents of those specific conditions.
- Other information depending on each promotion form.
Duration of announcement: At least 07 working days before conducting promotion.
An application includes: Announcement on promotion (Form KM-1 attached in Circular No. 07/2007/TTLT-BTM-BTC dated July 6th 2007).
Place of submission: Department of Industry and Trade where the promotion is conducted.
Register promotion activities:
Promotion formalities have to be registered are:
- Selling goods or providing services together with the participation in the promotion on the basis of lucks;
- Other form of promotion have not been stipulated by the laws.
An application for promotion activities registration includes:
- A written registration for promotion (Form KM-2 in the Annex attached in Circular No.07/2007/TTLT-BTM-BTC dated July 6th 2007);
- Rules of promotion programs (Form KM-3 in the Annex attached in Circular No.07/2007/TTLT-BTM-BTC dated July 6th 2007);
- Form of lottery ticket for the promotion program with issuance of lottery tickets;
- Images of promotional goods and goods used for promotion;
- Form of evidence determining the winning (if any);
- Copies of the certificate of quality of goods and services promoted and goods and services used for promotion in accordance with the laws (if any).
Place of submission: Department of Industry and Trade (if the promotion program is conducted in one province or city under central authority) or Ministry of Industry and Trade (if the program is conducted in two or more provinces or cities under the central authority).
Duration: Within 03 working days from the date of receipt, if the application is incomplete or invalid, the agency shall issue a written notice. Within 07 working days from the date of receipt of complete and valid application, Department or Ministry of Industry and Trade shall confirm or refuse to confirm the promotion registration. In case of refusal, a written answer providing explanation will be issued.
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