Dentons Luat Viet

On October 10th, 2024, the Government issued Decree No. 128/2024/ND-CP for amending, supplementing several provisions of Decree No. 81/2018/ND-CP dated May 22nd, 2018 that provided detailed guidelines on the Commercial Law regarding commercial promotional activities.

On October 10th, 2024, the Government issued Decree No. 128/2024/ND-CP (“Decree 128/2024/ND-CP”) for amending, supplementing several provisions of Decree No. 81/2018/ND-CP dated May 22nd, 2018 that provided detailed guidelines on the Commercial Law regarding commercial promotional activities (“Decree 81/2018/ND-CP”). Decree 128/2024/ND-CP, effective from December 1st, 2024, abolishes the notification requirements of some promotional programs stipulated in Decree 81/2018/ND-CP. Accordingly, traders are no longer required to notify the local Department of Industry and Trade where the promotional program is carried out for the following promotional forms:

(i) Giving samples of goods, and provision of services to customers for trial use free of charge;

(ii) Giving goods as gifts, providing free services to customers;

(iii) Selling goods or providing services at prices lower than the prices previously charged for the sale of the goods or provision of the services (discounts);

(iv) Selling goods, providing services together with coupons for the purchase of goods or use of services; and

(v) Organizing for customers to participate in cultural, artistic, and entertainment programs or other events for promotional purposes (under Article 92.8 of the Commercial Law No. 36/2005/QH11).

Furthermore, traders conducting promotional activities in the form of (i) selling goods, providing services associated with contest forms for customers, from amongst which the winners will be selected following announced rules; and (ii) holding programs for regular customers under which prizes will be given to customers based on volume or value of goods or services purchased by customers and expressed in the form of customer cards or coupons recording the goods or services purchased or other forms, are not required to notify the Department of Industry and Trade if the promotional programs are only conducted for goods and services sold or provided via e-commerce platforms, websites, and online promotional application.

The above regulation creates more favorable conditions for enterprises concerning invoices and Value-Added Tax (VAT) compliance relating to promotional activities. Under the VAT Law and guiding regulations if enterprises conduct promotional programs that do not comply with the provisions of the Commercial Law (e.g., failing to notify or register with the Department of Industry and Trade), they must issue VAT invoices and pay VAT as if the goods and services were for internal consumption, gifts, presents or donations. The removal of the notification requirement for the above promotional forms can be interpreted as enterprises declaring zero VAT taxable prices for goods and services used for these promotional activities.

Disclaimer: This publication is for general update. This should not be construed as professional advice for any specific case, entity, or individual. If you require further information or professional assistance concerning your specific circumstances, please feel free to contact us.

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Dentons Luat Viet

Dentons LuatViet is a member of Dentons, the world's largest law firm, with over 5,970 lawyers in over 165 locations in 81 countries. Founded in the late 1990s, Dentons LuatViet has established a reputation as one of the leading law firms in Vietnam. With more than 56 lawyers and professional staff serving clients from offices in Ho Chi Minh City and Hanoi, Dentons LuatViet is a unique global-local law firm capable of offering full-service legal counsel and business solutions in Vietnam.

Dentons LuatViet focuses on delivering practical and efficient legal solutions to fully satisfy our clients; diverse needs. Our exceptional service quality starts with understanding our clients' desires, and then we formulate appropriate legal strategies based on our in-depth knowledge of local law and the culture of Vietnam.


With a deep understanding of both the local and global landscape, our team of extensively educated lawyers and professionals boast impeccable qualifications and extensive experience gained through years of practice in Vietnam and overseas. Our team is proud of its ability to understand our clients' vision and effectively handle the legal challenges and difficulties faced by those doing business in Vietnam.

Dentons LuatViet excels in the following major practice areas:

 Corporate and Commercial
 Competition and Antitrust
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 Insurance, Finance and Banking
 Intellectual Property and Technology
 Labor & Employment

 Mergers & Acquisitions
 Data protection and Cybersecurity
 Real Estate and Construction
 Securities and Capital Markets
 Trade, WTO and Customs
 Other services

 

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