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DECREE NO. 128/2024/ND-CP AMENDING AND SUPPLEMENTING CERTAIN ARTICLES OF DECREE NO. 81/2018/ND-CP DATED 22 MAY 2018, OF THE GOVERNMENT DETAILING THE IMPLEMENTATION OF THE COMMERCIAL LAW ON TRADE PROMOTION ACTIVITIES

On 10 October 2024, the Government issued Decree No. 128/2024/ND-CP (“Decree 128”) amending and supplementing certain regulatiions of Decree No. 81/2018/ND-CP (“Decree 81”) dated 22 May 2018, which details the implementation of the Commercial Law on trade promotion activities, including:

1. Addition of cases where the maximum limit on the value of goods and services used for promotion does not apply

Clause 1, Article 1 of Decree No. 128/2024/ND-CP adds entities that are not subject to the maximum limit on the value of goods and services used for promotion. This is a new provision in Decree No. 128/2024/ND-CP regarding promotional activities. Specifically:

2. Removing the regulation on the time limit for conducting intensive promotional programs

Decree No. 128/2024/ND-CP has abolished the time limit for conducting intensive promotional programs led by government authorities.

Previously, according to Clause 4, Article 6 of Decree No. 81/2018/ND-CP, such activites could only be carried out within a specific period (hour, day, week, month, promotional season), which restricted stores and specialized centers selling clearance or outdated products, etc. Removing the time restriction allows businesses more flexibility, promoting tourism, economic and social growth, and enhances product consumption efficiency.

3. Simplification of administrative procedures for promotional activity notifications

Unlike previous regulations, from the effective date of Decree No. 128/2024/ND-CP, the cases where businesses are required to notify all Departments of Industry and Trade in the locations where the promotions are conducted before implementing the promotional program have changed as follows:

The adjustment of notification requirements for promotional activities aims to simplify administrative procedures, making it easier for businesses to conduct promotional activities.

4. Amending several regulations regarding the announcement of results, awarding prizes, and reporting results

Decree No. 128/2024/ND-CP also adjusts several regulations related to the announcement of results, awarding prizes, and reporting the results of promotional programs, aiming to ensure transparency and fairness in the implementation process. The new points of the regulation include:

  • Announcement and awarding of prizes: Must be done within 45 days from the end of the promotional program, except in cases of force majeure as prescribed by law.
  • Adding entities that are not required to report the results of the promotional program: Selling goods or providing services with accompanying contest tickets for customers to select winners according to the announced rules and prizes (or other equivalent forms of organizing contests and awarding prizes).
  • Regulations on reporting for prizes with no winners in promotional programs based on luck:
  • Regulations on reporting for prizes with no winners in promotional programs based on luck: The report must be submitted within 45 days from the date of receiving the decision on submission from the state management authority (previously 15 days).
  • Reporting obligation for the results of contributions to the state budget: Not required (previously, within 10 days from the date of contributing to the state budget, traders were obligated to submit a written report to the state management authority that issued the decision on the submission).

5. Effective date

  • The Decree takes effect from 01 December 2024.
  • Applications submitted before the effective date of the decreewill be processed under previous regulations.