Under Vietnamese law, to ensure fair competition and protect consumer rights, the government has established regulations on the maximum value of goods and services used for promotional purposes. This article will help you better understand these regulations, including exceptions and key considerations when running promotional campaigns.

I. General Regulations on Promotion Limits

Under current regulations, the value of promotional goods or services for a single unit cannot exceed 50% of the selling price of that unit immediately before the promotion.

Example: If a product is sold at 10,000,000 VND, the promotional gift’s value must not exceed 5,000,000 VND.

However, the maximum discount limit does not apply to the following:

• Goods and services under the State’s price stabilization policy.
• Fresh food products.
• Goods and services in cases of business bankruptcy, dissolution, or relocation of production or business activities.

Although the 50% rule is a general guideline, certain exceptions allow businesses to exceed this limit. These exceptions include:

• Seasonal promotions: Major promotional campaigns during holidays, Tet (Vietnamese New Year), or year-end events may permit higher discounts.
• Clearance sales: Businesses liquidating unsold stock may apply deeper discounts.
• Special customer groups: Promotions targeting loyal customers, new customers, or specific customer groups may offer higher discounts.

II. Penalties for Exceeding the 50% Discount Limit

According to Vietnamese law, offering discounts exceeding 50% of the original price is generally considered a violation and may result in administrative fines ranging from 10,000,000 VND to 20,000,000 VND.

This regulation and its penalties serve several key objectives:

• Consumer protection: Excessive discounts may indicate price manipulation or mislead consumers regarding product or service quality.
• Fair competition: Overly aggressive discounts can harm other businesses, fostering unfair competition and encouraging predatory pricing.
• Preventing price wars: Uncontrolled discounting among businesses may destabilize the market and negatively impact production and commerce.
• Preserving product value: Excessive discounts can devalue goods, affecting the reputation of products and brands.
• Effective market management: Setting a maximum discount limit helps government agencies monitor and address violations more effectively.
• Transparent business environment: These regulations contribute to a fair, transparent, and competitive business landscape.

III. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

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For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

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