Saigon Cosmetics Joint Stock Company specializes in manufacturing cosmetics, doing business on many channels (traditional channels, supermarket channels...) and selling products on e-commerce sites such as shopee, lazada...

The company has registered many industry codes, including online sales business code (including industry code 4791 - Retailing on request by mail or internet and industry code 4799 - Other retail).

According to the Company, refer to Clause 2, Article 17 of Decree No. 81/2018/ND-CP dated May 22, 2018 stipulating:

Cases where administrative procedures are not required to notify the implementation of sales promotion when conducting sales promotion in the forms specified in Clause 8, Article 92 of the Commercial Law and Articles 8, Article 9, Article 10, Article 11, Article 11 12, Article 14 of this Decree:

a) Traders conducting promotional programs specified in Clause 1 of this Article with a total value of prizes and gifts under VND 100 million;

b) Traders only conduct sales and promotions through e-commerce trading floors, online promotion websites."

Saigon Cosmetics Joint Stock Company asked, does the company have to carry out administrative procedures to notify the implementation of promotions to the Department of Industry and Trade? Can the discount exceed 50%, because there are many companies selling online with discounts of up to 70%, 80% (not in the concentrated promotion)?

The Trade Promotion Department, Ministry of Industry and Trade responded to this issue as follows:

According to the provisions of Point b, Clause 2, Article 17 of Decree No. 81/2018/ND-CP, "Traders who only conduct sales and promotions through e-commerce trading floors and online promotion websites" do not must carry out administrative procedures to notify the implementation of promotion to the Department of Industry and Trade where the promotional activities are conducted.

Regulations on e-commerce trading floors and online promotional websites are specified in the consolidated document No. 14/VBHN-BCT of the Ministry of Industry and Trade dated November 19, 2021 on the Decree on management of e-commerce activities.

Enterprises are only allowed to conduct promotions with a maximum discount of 100% when conducting sales promotions as prescribed in Clause 2, Article 7 of Decree No. 81/2018/ND-CP, or unlimited promotion as prescribed in Clause 2 of this Article. 3 Article 7 of Decree No. 81/2018/ND-CP.