Sale promotion registration procedures in Vietnam

Sale promotion is a trade promotion activity of traders to promote the purchase and sale of goods and the provision of services by giving customers certain benefits. When implementing promotional programs, it will be a good opportunity for businesses to improve their ability to access the supply chain and penetrate distribution and retail channels to introduce goods and products to distributors, and consumers. At the same time, it is a bridge to help consumers know reputable brands with good quality goods. Promotions are regulated in many different forms. Merchants can choose the form of promotion to apply. However, some forms only require notification procedures, while others require promotion registration. In the article below, Viet An Law will advise you on regulations related to sale promotion registration procedures in Vietnam.

Legal basis

• Law on Commercial 2005;
• Decree 81/2018/ND-CP detailing the Commercial Law on trade promotion activities, as amended and supplemented by Decree 17/2020/ND-CP;
• Decree 98/2020/ND-CP stipulates penalties for administrative violations in commercial activities, production and trading of counterfeit and banned goods, and protecting consumer rights, as amended and supplemented by Decree 17/2022/ND-CP.

Forms of sale promotion and related obligations

According to Article 19 of Decree 81/2018/ND-CP, there are only two cases that need to register for promotion programs out of a total of 9 forms of sale promotion applied in Vietnam. Accordingly, for the remaining 7 forms, traders conducting promotions only need to formally notify the management agency to proceed without registration.

Specifically, the forms of promotion that must be registered and notified are specified as follows:

Sale promotion registration procedures in Vietnam

Step 1: Submit application

Traders prepare the prescribed registration dossier and submit it in 01 of 03 forms including:

• Directly to the department receiving and returning results of the competent authority.
• By post to the receiving and returning results department of the competent authority.
• Use the online public service system.

Step 2: Receive and process documents

• Within 05 working days from the date of receipt of the dossier, the competent authority shall review and respond to confirm or disconfirm the trader’s registration to implement the promotion program.
• In case of non-confirmation, the reason must be clearly stated according to the provisions of law. The content of confirmation or non-confirmation is made according to Form No. 04 or Form No. 05, Appendix issued with Decree 81/2018/ND-CP.

Step 3: Get results

• Traders receive results by appointment or by post or email.
• The result of carrying out administrative procedures is an official dispatch confirming or not confirming the promotion program registration.
• Vouchers and documents related to reports on promotional results must be stored and held by the trader by the provisions of law to serve the work of inspection, examination, and supervision.

Step 4: Report the results of the sale promotion implementation

Within 45 days from the date of expiry of the prize award period of the promotion program, the trader implementing the promotion program must send a written report to the competent state management agency (where registered and confirmed) on the results of the promotion program implementation according to Form 07 Appendix issued with Decree 81/2018/ND-CP.

In case 50% of the prize value without a winner must be deducted from the state budget, the trader must follow the steps in the following order:

• Record in the report on the results of promotion implementation that the prize results have no winners;
• Within 07 working days from receipt of the trader’s report, the state management agency shall issue a decision on collection and payment according to regulations.
• Traders are responsible for paying the above amount within 15 working days of receiving the decision;
• Traders send a written report according to Form No. 09, Appendix issued with Decree 81/2018/ND-CP to the state management agency that decides on collection and payment within 10 days from the date of payment to the state budget.

Sale promotion registration dossier

The agency carries out promotion registration procedures

• The Department of Industry and Trade shall issue licenses for promotional programs of chance carried out in one (01) province in Vietnam;
• The Ministry of Industry and Trade (Trade Promotion Department) shall issue licenses for promotional programs of chance carried out in the areas of two (02) provinces or more and promotional programs according to other forms.

Some related questions

When using Viet An Law’s sale promotion registration services, what documents do clients need to prepare?

• Information for Viet An Law to support declaration and registration for promotion programs includes the corporate tax code, name of promotion program, promotion period, and promoted goods and services (traded by traders), goods and services used for promotion, promotion area, form of promotion, target customers, total prize value, and names of merchants conducting the promotion (if any).
• Information for Viet An Law to support drafting promotion program rules includes the name of the promotion program, promotion period, promoted goods and services (owned by traders), promotion area, Promotion methods, target customers, prize structure (details of prizes), how to participate in the program, regulations on proof of winning, Time and method of issuing proof of winning; Time, place, and method of determining winning prizes; Method and deadline for notification of prize winnings; Time, location, and procedures for awarding awards; Focal point for answering questions; Duty to notify; Other regulations (if any).
• Sample of proof of winning or detailed description of proof of winning;
• Documents on the quality of promotional goods according to the provisions of law.

How long is the promotional registration valid?

Promotion registration is only applied one time, during the registered promotion period.

Are there any fees or charges for registering for promotions?

The law does not regulate fees when registering for promotions. Therefore, this administrative procedure does not incur any fees or charges.

When must I register for promotions?

Registration documents must be sent to the Department of Industry and Trade before conducting promotions. Traders need to adjust the time limit for processing promotion registration procedures (minimum is 05 days) to make registration in time when the promotion is expected to take place.

Traders who conduct promotions in the form of registration but do not comply with regulations will be fined according to regulations. According to Clause 2, Article 33 of Decree 98/2020/ND-CP, as amended and supplemented by Decree 17/2022/ND-CP, if traders do not register for promotions according to legal regulations when conducting promotions, or registration that is not true to reality can be fined from 10 million to 20 million VND.

Sale promotion registration service in Vietnam of Viet An Law

• Specific and detailed advice on registration procedures for sale promotion according to current legal regulations;
• Provide quick and timely promotional registration services;
• Develop and coordinate with clients to complete sale promotional program regulations;
• Accompany clients in the process of implementing promotions;
• Support and limit risks for clients in cases related to sale promotional programs.

If there is any unclear content or need specific advice related to sale promotional registration procedures in Vietnam, please contact Viet An Law Firm for the fastest answers and support.

Update: 11/2024