Maximum Promotional Value Limits for Goods and Services Effective from July 1, 2025

Effective from July 1, 2025, Circular No. 39/2025/TT-BCT of the Ministry of Industry and Trade will take effect, establishing a unified framework governing the maximum value limits and discount rates applicable to promotional goods and services nationwide. This Circular establishes an important legal foundation regulating promotional and marketing activities of traders engaged in the production and trading of goods and services. To better understand these new limits, TNTP invites you to refer to the analysis below.

1.Maximum value limit for promotional goods and services

Under Clause 3, Article 3 of Circular No. 39/2025/TT-BCT, which provides for the maximum value of goods and services used for promotional purposes and the maximum discount rate applicable to promotional goods and services that traders may apply (“Circular 39”), the maximum promotional value limits are as follows:

• The material value of promotional goods or services provided for a single unit of the promoted item must not exceed 50% of its selling price immediately before the promotion period, except in the following cases:

– Organizing cultural, artistic, entertainment, or other events for promotional purposes;

– Other promotional forms approved by the competent state authority for commerce;

– Providing free samples or trial services for customers to experience without payment;

– Giving away goods or providing services free of charge without requiring purchase;

– Selling goods or providing services accompanied by contest entry coupons, whereby winners are selected according to the published rules and prizes (or other equivalent forms of contests and prize-awarding activities);

– Selling goods or providing services in connection with chance-based promotional programs, in which participation is tied to the purchase of goods or services, and the winning of prizes depends on the luck of participants in accordance with the published rules and prize announcements (chance-based promotional programs);

– Organizing customer loyalty programs, under which rewards are granted to customers based on the quantity or value of goods or services purchased, as evidenced through membership cards, purchase records, or other equivalent forms.

• The total value of promotional goods and services in a single promotional campaign must not exceed 50% of the total value of goods or services being promoted, except for the following forms:

– Organizing cultural, artistic, entertainment, or other events for promotional purposes;

– Other promotional forms approved by the competent state authority for commerce;

– Providing free samples or trial services for customers to experience without payment;

– Giving away goods or providing services free of charge without requiring purchase.

Accordingly, most promotional activities are capped at a maximum of 50% of the value of the goods or services being promoted.

2.Centralized promotional programs with a 100% value limit

Pursuant to Clause 4, Article 3 of Circular No. 39/2025/TT-BCT, the maximum value of goods and services used for promotional purposes may be increased to 100% in cases where traders organize centralized promotional programs.

Under this provision, centralized promotional programs eligible for the 100% promotional value limit fall into two main categories, as follows:

• First, programs organized under decisions issued by central and provincial state authorities. These programs are implemented to carry out national or local economic development policies with specific objectives. The State encourages the organization of such centralized promotional programs, and all traders are entitled to participate in these programs.
• Second, promotional campaigns conducted during holidays and festivals as prescribed under labor laws, specifically:

– Lunar New Year (Tet): within 30 days prior to the first day of the Lunar New Year;

– Other public holidays and festivals. The duration of each promotional campaign conducted during these holidays and festivals must not exceed the corresponding statutory holiday period as prescribed by labor laws. These periods typically coincide with increased consumer demand; therefore, allowing a maximum promotional rate of 100% serves to stimulate consumption and support commercial activities..

Participating in centralized promotional programs provides significant advantages to traders. It enables them to execute more impactful marketing strategies with higher promotional investments, while consumers benefit from large-scale, high-value promotional events during key festive periods.

3.Maximum discount rates for promotional goods and services

Article 4 of Circular 39 regulates the maximum discount rates applicable to promotional goods and services as follows:

• The maximum discount for promotional goods or services must not exceed 50% of the selling price immediately before the promotion period.
• For centralized promotional programs under Clause 5, Article 3, the maximum discount rate may reach 100%.
• The 100% discount cap also applies to promotional activities organized within trade promotion programs approved by competent central authorities.

In addition, certain goods and services subject to promotional discounts are not restricted by the maximum discount limit, including:

• Price-stabilized goods and services regulated by the State: Competent state authorities may require traders to apply unlimited price reductions in order to stabilize the market and protect consumers’ interests during periods of economic difficulty.
• Perishable fresh food products: Due to their short shelf life and high perishability, traders are permitted to apply flexible discount rates to prevent waste and ensure food safety for consumers.
• Goods and services under liquidation as a result of business dissolution, bankruptcy, or relocation/restructuring: Businesses must liquidate inventory promptly. Therefore, allowing unrestricted discounts is consistent with business realities and helps enterprises recover part of their capital effectively.

Thus, the general maximum discount rate for promotional goods and services is 50%, except in special cases where 100% discounts or no limit apply. These rules aim to balance the interests of traders, protect consumers, and prevent unfair competition.

This article by TNTP provides an overview of the maximum promotional value limits for goods and services effective from July 1, 2025. We hope it offers useful insights to our readers. Should you require further assistance, please feel free to contact us.

Sincerely,