Enterprises are entitled to promotion, discount of 100% of the value of goods and services, instead of the ceiling of 50% as before.
This is one of the remarkable points in Decree 81/2018 / ND-CP recently issued by the Government on May 22, detailing the Commercial Law regarding trade promotion activities. This new decree will take effect from July 15.
According to Decree 81, promotion and discount limits for goods and services are specified: In the case of centralized promotion programs (hours, days, weeks, months, promotion seasons, and discounts price) is offered a discount, 100% discount on the value of goods and services. The promotion limit, 100% discount also applies to promotional activities within the framework of trade promotion programs and activities decided by the Prime Minister.
Apart from the above case, the promotion and discount limit cannot exceed 50% of the price of the promoted goods or service unit before the promotion period.
Also according to this decree, enterprises do not apply the maximum discount limit when conducting discount promotion for: goods and services when implementing the price stabilization policy of the state; fresh food products; goods and services in case of dissolution, bankruptcy or change of business locations.
The aforementioned new regulation is considered a big step forward compared to the current and draft regulations. The previous draft proposed: “Traders can discount up to 70% in case of promotions according to the promotion program (promotion month, promotion season, promotion week, promotion day …) due to The State takes the lead in organizing or promoting trade promotion programs prescribed by the Prime Minister and provincial-level People’s Committees. For other promotion cases, the maximum limit of 50% is maintained as currently ”. In the current regulation, which has existed for 10 years, the maximum limit for sales promotion and discount of goods and services is only 50%.
* Source: Saigon Economic Times