On May 22, the Government issued Decree No.81/2018/ND-CP detailing the Commercial Law regarding trade promotion activities, including sales promotion, fairs and exhibitions. This Decree took effect since July 15, 2018.
Accordingly, Decree No.81/2018/ND-CP regulates the maximum discount rate for promoted goods and services as follows:
- Sales promotion limit and price discount limit must not exceed 50% of the price of one unit of promoted goods and services before sales promotion.
- For the promotions in form of price discount in case of centralized promotions mentioned above (hour, day, week, moth, promotion season), the maximum price discount for promoted goods or services is 100%. This maximum price discount shall be applied with the promotion activities within the framework of trade promotion activities, programs decided by the Prime Minister.
With specific regulations, Decree No.81/2018/ND-CP aims at minimizing unfair promotion programs and competition, thus causing negative impacts on the market economy recently.
