Hnlaw Firm would like to update our valued clients on several new regulations regarding promotional activities in Vietnam, effective from 2025 as follows:

As of December 1, 2024, Decree No. 128/2024/ND-CP officially takes effect, providing detailed guidance and amendments to certain provisions governing promotional activities. Accordingly, the maximum value of promotional goods or services must not exceed 50% of their selling price immediately before the promotion period, except for specific cases provided by law.

Notably, the new Decree simplifies administrative procedures, thereby facilitating businesses in organizing promotional programs. In particular, traders are exempted from notification or registration requirements for the following types of promotional activities:

• Organizing cultural, artistic, entertainment, or other events for customers for the purpose of sales promotion;
• Providing free samples of goods or services;
• Gifting goods or services to customers;
• Selling goods or providing services at discounted prices during an announced promotional period;
• Selling goods or providing services together with coupons or vouchers;
• Selling goods or providing services with contest entry forms for prize selection according to pre-announced rules and prize structures, where the total value of prizes does not exceed VND 100 million;
• Organizing frequent customer programs to reward customers based on the quantity or value of goods or services purchased, where the total value of gifts does not exceed VND 100 million.

Assessment of the New Regulation’s Impact

The issuance of Decree No. 128/2024/ND-CP represents a positive development aimed at fostering a more open and flexible business environment. The new rules significantly reduce administrative burdens and compliance costs, while enhancing transparency and consistency in promotional practices. At the same time, maintaining the 50% promotional value cap continues to ensure fair competition and protect consumers’ interests, helping to prevent deceptive promotions or price manipulation.

Nevertheless, businesses are advised to review and adjust their promotional programs to ensure compliance, particularly in cases involving prize contests or high-value rewards.

Hnlaw Firm sincerely thanks our clients and readers for your continued attention and trust.

We remain committed to providing ongoing legal updates and in-depth analyses to help businesses operate effectively, lawfully, and safely under Vietnam’s evolving legal landscape.