Goods cannot be promoted at a discount higher than 50%
Accordingly, from July 1, 2025, the material value used to promote a unit of goods or services being promoted shall not exceed 50% of the selling price of that unit of goods or services immediately before the promotion period.
The circular specifically regulates that the maximum discount rate for promoted goods and services shall not exceed 50% of the price of those goods and services immediately before the promotion period.
In cases where the trader conducting the promotion does not directly produce, import goods, or directly provide promotional services, the value shall be calculated based on the trader’s payment price to purchase the goods or services for the promotion or the market price of the goods or services used for the promotion at the time of announcement.
If the goods or services used for the promotion are directly produced, imported, or provided by the trader, the value shall be calculated based on the production cost or import price of those goods or services.
In the case of organizing a centralized promotion program, the maximum limit on the value of goods and services used for promotion is 100%.
The 100% maximum value limit for goods and services used for promotion also applies to promotional activities within the framework of trade promotion programs and activities decided by central-level competent authorities.
The maximum discount limit does not apply when implementing promotional discounts for goods and services under the State’s price stabilization policy, fresh food products, and goods and services in cases of enterprise bankruptcy, dissolution, relocation, or change in business sector.
In the past, there have been times when promotional discounts exceeded 50%, especially on online channels. In 2024, there were times when cross-border e-commerce platforms from China, such as Temu, Taobao, and 1688, entered the Vietnamese market and offered huge discounts of up to 80%-90%.
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