Government decree 81/2018/ND-CP, promulgated on the 25th of May 2018,  permits businesses to discount their goods and services by up to 100 percent in certain promotional programmes with specific durations such as happy hours, big sale days, monthly or seasonal sales, and special trade promotion programmes.

Eligible business entities include goods and services producers, promotions service providers including marketing agencies, trade fair and exhibitions businesses and promoters, and organizations and individuals with trade-related activities. 

The decree does not apply to goods and services in price stabilisation programmes, for fresh or raw goods, and for goods and services of enterprises that become insolvent, or change locations or change the type of business being operated. 

Article 3 sets out promotion principles. Sales promotion programs must be conducted in a lawful, honest, public and transparent manner, and must not harm legitimate interests and rights of consumers, other traders, organizations or individuals.

Promotion-involved traders must ensure fair conditions for prize-winning customers to receive prizes and are obliged to settle complaints (if any) concerning their sales promotion programs.

Promotion-involved traders are responsible for guaranteeing the quality of promoted goods and services and those used for sales promotion.

The implementation of sales promotion must ensure: 1- Promotion-involved traders must not require customers entitled to sales promotion to give up, refuse, or exchange goods and services of other traders and organizations; 2- Promotion-involved traders must not provide direct comparisons between their goods and services and those of other traders, organizations or individuals for the purpose of unfair competition.

Article 4 of the decree states that businesses which have not registered to conduct multi-level marketing activities are not permitted to conduct sales promotions in a multi-level form.

Article 5 states that promoted goods and services cannot include wine and spirits, lotteries, tobacco, milk formula replacing mother's milk, treating medicines, medical diagnostic and treatment services of public medical establishments, educational services of public establishments, vocational training establishments, goods and services in Vietnam that are either prohibited or prohibited from being in circulation.

The value of promoted items generally must not exceed 50% of the total value of the promotion, or 50% of the value prior to the promotion period, with exceptions under specific clauses of the Commercial Law.

The 50% is calculated at cost for goods and services produced or imported by the promoter and at the price paid for goods and services purchased by the promoter and not actually provided by the promoter. A 100% promotion discount is permitted for time-limited or concentrated promotions held for an hour, day, week or month, over a public holiday or for a promotional season.  

Forms of promotion covered include free samples, gifts, lower prices, coupons, combinations or bundles of goods in promotion, lucky draws and prizes, volume customer promotions, customer card promotions, and promotions involving the internet and other electronic means.

The decree addresses changes and amendments to promotions, the termination of promotions, goods and services displayed at trade fairs, and processes and procedures for registering for trade fairs and exhibitions.