Specifically, the material value used for promotion of a unit of goods or services must not exceed 50% of the selling price. This is a regulation designed to prevent price dumping, market manipulation and unfair competition, which has come into effect since July.
However, the Vietnam Federation of Commerce and Industry (VCCI) believes that this promotional “ceiling” is limiting businesses’ business autonomy, especially in the context of the rapidly developing digital economy and e-commerce, with the increasing need for flexible and creative marketing.
Having to ask for permission or compare promotional rates according to administrative regulations makes it difficult for many small businesses, even forcing them to circumvent the law to survive.
Therefore, VCCI proposed to remove the 50% promotion limit and completely switch to a post-audit mechanism, meaning no registration is required, no promotion limit is set, but still monitored through the Competition Law, Consumer Protection Law and specialized legal system.
Many opinions say that small and micro businesses that do not have large communication budgets need deep promotions as a survival and competitive tool.
If the ceiling is kept at 50%, businesses will be forced to use price tricks, freebies, and promotions outside the system. This leads to a business environment that lacks transparency and is difficult to control.
The post-audit mechanism is truly effective if accompanied by three conditions: Transparent data (on time, reduction level, reason for reduction), empowered consumers to monitor (through feedback platforms, price comparison tools) and the ability of market management agencies to quickly handle.
Especially in the context of difficult consumption, deep and flexible promotions are a way to create demand, clear inventory and activate the supply chain.
Source: https://hanoimoi.vn/vcci-de-xuat-bo-gioi-han-khuyen-mai-50-chuyen-sang-co-che-hau-kiem-708430.html
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