1. Introduction
1.1 Importance of Trade Promotion in Vietnam’s EconomyÂ
Trade promotion serves as a critical pillar in advancing Vietnam’s export-led growth model. It bridges domestic producers with global markets, stimulates investment, and drives sectoral innovation through the introduction of new technologies and partnerships.Â
1.2 Legal Environment Governing Promotional ActivitiesÂ
In a jurisdiction where regulatory precision is paramount, legal oversight ensures that trade promotion adheres to public interest standards, upholds fair competition, and aligns with Vietnam’s socio-economic development strategies.Â
2. Definition of Trade Promotion and Introduction Activities
2.1 Legal Definition under Vietnamese LawÂ
Under the Commercial Law No. 36/2005/QH11, trade promotion refers to activities aimed at stimulating the purchase and sale of goods and services. It encompasses a spectrum of methods including exhibitions, advertising, and market development support.Â
2.2 Scope of Permissible ActivitiesÂ
Activities legally permitted include organizing trade fairs, product showcases, marketing events, and conducting surveys that influence purchasing behavior, provided they comply with prescribed formats.Â
3. Regulatory Bodies Involved
3.1 Ministry of Industry and Trade (MOIT)Â
The MOIT serves as the primary regulatory authority responsible for policy formation, issuance of guiding decrees, and oversight of large-scale trade promotion initiatives.Â
3.2 Department of Trade PromotionÂ
A sub-agency of MOIT, this department directly manages licensing, evaluates program proposals, and supports international collaboration on trade events.Â
3.3 Local Authorities and Specialized AgenciesÂ
Departments of Industry and Trade at the provincial level handle event approvals and inspections. Collaboration may also be required with cultural, tourism, and customs authorities.Â
4. Legal Framework Governing Trade Promotion
4.1 Commercial Law No. 36/2005/QH11Â
This foundational law codifies trade promotion activities, setting the legal stage for execution, enforcement, and penalty mechanisms.Â
4.2 Decree No. 81/2018/ND-CPÂ
This decree provides operational clarity, outlining specific procedures, thresholds, and conditions for implementing promotional campaigns.Â
4.3 Circulars and Interpretive GuidelinesÂ
Supplementary circulars offer nuanced interpretations for unique cases, such as promotions involving digital media or international participation.Â
5. Types of Trade Promotion Activities Recognized by Law
5.1 Trade Fairs and ExhibitionsÂ
Organizing or participating in trade fairs—domestic or international—requires detailed proposals and prior licensing from competent authorities.Â
5.2 Advertising and Marketing CampaignsÂ
Advertising must comply with Vietnam’s Advertising Law, including content restrictions and language requirements.Â
5.3 Sales Promotion and Discount SchemesÂ
Activities like lucky draws, price reductions, and gifts are permitted within defined timeframes and subject to notification to the Department of Industry and Trade.Â
5.4 Commercial Intermediary ServicesÂ
Entities acting as agents or brokers in connecting suppliers and buyers also fall under the ambit of trade promotion, requiring compliance checks.Â
6. Entities Eligible to Organize Trade Promotion
6.1 Domestic Enterprises and CooperativesÂ
Any legally registered business or cooperative with appropriate business lines can engage in promotion.Â
6.2 Foreign-Invested EnterprisesÂ
These entities must demonstrate that promotional activities are aligned with their IRC and ERC registrations.Â
6.3 Associations, NGOs, and Chambers of CommerceÂ
Recognized industry groups and trade associations may organize events to serve their members, provided they secure approval and meet documentation requirements.Â
7. Mandatory Licensing and Notification Procedures
7.1 License vs. Notification DistinctionÂ
Minor promotions require only advance notification, while larger-scale events demand formal licensing, particularly if public gatherings or cross-border participation are involved.Â
7.2 Thresholds Triggering Licensing ObligationsÂ
Events involving multiple vendors, public land usage, or prize values exceeding regulated caps require advance permits.Â
7.3 Exemptions for Specific Entities or EventsÂ
Events hosted within closed corporate environments or by state-authorized economic promotion boards may receive streamlined approvals.Â
8. Business Registration and Licensing Prerequisites
8.1 Legal Status of the Organizing EntityÂ
Only entities holding valid ERCs and compliant tax records can legally organize promotion activities.Â
8.2 Registered Business LinesÂ
The ERC must reflect relevant business lines such as event management, marketing, or trade representation.Â
8.3 Sufficient Financial and Operational CapacityÂ
Authorities may request proof of solvency and logistical readiness, especially for events anticipating large crowds or significant transactions.Â
9. Required Dossier for Trade Promotion Licensing
9.1 Application Form as per MOIT TemplatesÂ
Forms must be correctly filled, signed by legal representatives, and in accordance with MOIT formats.Â
9.2 Detailed Program Outline or ProposalÂ
This includes event objectives, schedules, location details, participating entities, and promotional methods.Â
9.3 Enterprise Registration CertificateÂ
A notarized copy of the ERC must be included in all dossiers.Â
9.4 Evidence of Venue and Logistics ArrangementsÂ
Lease contracts, security plans, and technical setups must be documented.Â
9.5 Proof of Financial CapacityÂ
Audited reports, bank confirmations, or financial guarantees are typically required.Â
9.6 Contracts With Third-Party Service ProvidersÂ
Agreements with vendors, contractors, or foreign exhibitors must be disclosed.Â
9.7 Authorization Letter (if applying via a proxy)Â
Third-party applications necessitate notarized authorization documentation.Â
10. Application Channels and Competent Authorities
10.1 Online Submissions via National Public Service PortalÂ
This digital route allows efficient and trackable applications for most promotional licenses.Â
10.2 In-Person Submission to Provincial DepartmentsÂ
Physical submission remains available, particularly for complex or high-profile events.Â
10.3 Review and Feedback ProceduresÂ
Applicants may receive requests for clarification or supplemental information before a license is granted.Â
11. Evaluation Criteria and Processing Timeline
11.1 Consistency with National Promotion StrategiesÂ
Authorities assess alignment with sectoral development goals and national economic priorities.Â
11.2 Compliance with Content and Format RegulationsÂ
Proposals are reviewed for legality of content, adherence to duration limits, and participant eligibility.Â
11.3 Processing Duration and Extension OptionsÂ
Standard timelines range from 5 to 15 working days. Extensions are available for multi-phase events.Â
12. Legal Responsibilities of Trade Promotion Entities
12.1 Compliance with Advertising and Fair Competition LawsÂ
Entities must avoid deceptive promotions, price manipulation, or content that misleads consumers.Â
12.2 Reporting and Post-Event ObligationsÂ
Post-event reports summarizing results, participation, and finances may be required.Â
12.3 Record-Keeping RequirementsÂ
All documentation must be retained for inspection for a minimum of five years.Â
13. Special Conditions for Foreign Entities
13.1 Licensing for Foreign-Invested OrganizersÂ
Foreign-invested companies must include trade promotion in their IRC and may face additional scrutiny.Â
13.2 Cross-Border Promotional CampaignsÂ
International promotions must comply with customs, import/export, and diplomatic protocols.Â
13.3 Local Representation RequirementsÂ
Foreign entities typically must appoint a local agent or partner to manage on-the-ground operations.Â
14. Inspection and Supervision Mechanisms
14.1 Authority to Monitor Promotional ActivitiesÂ
Trade inspectors are empowered to conduct unannounced checks and demand immediate compliance.Â
14.2 Penalties for Non-ComplianceÂ
Fines, revocation of licenses, or public blacklisting may apply for egregious violations.Â
14.3 Public Complaints and Grievance MechanismsÂ
Consumers can report promotional misconduct through hotlines and provincial trade offices.Â
15. Limitations on Trade Promotion Activities
15.1 Restricted Goods and Sensitive TopicsÂ
Tobacco, alcohol, pharmaceuticals, and culturally sensitive goods face stricter regulations or outright bans.Â
15.2 Duration and Frequency RestrictionsÂ
Campaigns may not exceed a specified number of days per year unless granted exemption.Â
15.3 Advertising Content GuidelinesÂ
Content must avoid religious, political, or false claims and be in Vietnamese or approved translations.Â
16. Taxation and Financial Considerations
16.1 Tax Liabilities of Promotion OrganizersÂ
Organizers are subject to VAT and CIT, and must declare income derived from ticket sales, sponsorships, and services.Â
16.2 Withholding Tax for Foreign Service ProvidersÂ
Non-resident contractors are taxed under the foreign contractor tax regime.Â
16.3 Expense Deductions and Accounting PrinciplesÂ
Valid promotional expenses can be deducted if properly documented and accounted for under Vietnamese standards.Â
17. Intellectual Property Considerations
17.1 Use of Trademarks and CopyrightsÂ
Usage of third-party IP requires prior consent and must not infringe upon registered rights.Â
17.2 Protection Against Misuse in Promotional MaterialsÂ
Organizers should register their own IP to avoid misappropriation by competitors or fraudulent actors.Â
18. Data Protection and Consumer Privacy
18.1 Use of Personal Data in PromotionsÂ
Collecting, storing, and using consumer data during promotions must comply with cybersecurity laws.Â
18.2 Legal Requirements for Consent and DisclosureÂ
Explicit opt-in consent is mandatory for marketing communications and prize-related processing.Â
19. Risk Management and Contingency Planning
19.1 Insurance for Events and Public LiabilityÂ
Comprehensive insurance is recommended, especially for large-scale public engagements.Â
19.2 Emergency Response ProceduresÂ
Event organizers must prepare for medical emergencies, fires, and public disorder scenarios.Â
20. Conclusion
20.1 Strategic Importance of Legal Compliance in Trade PromotionÂ
Compliance is not merely procedural—it is a strategic asset that ensures credibility, operational efficiency, and sustainable growth in Vietnam’s vibrant market.Â
20.2 Future Trends and Policy DevelopmentsÂ
Vietnam is poised to modernize its trade promotion landscape through digitalization, international cooperation, and increased transparency. Organizers must adapt to stay competitive.Â