SOME LEGAL PROVISIONS ON THE ACTIVITIES OF DISPLAY AND INTRODUCTION OF GOODS AND SERVICES

Displaying and introducing goods and services is an important part of a business’s marketing strategy. Displaying and introducing goods and services plays an important role in attracting customers, increasing sales and building a good image for the business. 

Currently, the Commercial Law 2005 stipulates that the display and introduction of goods and services is a trade promotion activity performed by traders. Hereafter, BiLaw will present the legal regulations related to the display and introduction of goods and services.

1. What is display, introduction, goods and services?

Article 117 of the 2005 Commercial Law stipulates: Display and introduction of goods and services are trade promotion activities of traders using goods and services and documents about goods and services to introduce to customers.

Thus, displaying and introducing goods and services is a trade promotion activity. This activity is not directly aimed at sales, but only for the purpose of contacting and introducing products and services to customers.

The subject of this trade promotion activity is a specific trader, including the following: Vietnamese traders; Branches of Vietnamese traders; Branches of foreign traders in Vietnam; Traders providing services of displaying and introducing goods and services in Vietnam.

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3. Activities not performed when introducing, displaying, goods or services

Pursuant to Articles 118, 121, 123 of the Commercial Law 2005.

  • A representative office is not allowed to directly display goods and services, except for the display and introduction at the head office of such a representative office. Representative offices are allowed to sign with service traders, display and introduce goods and services if authorized by the traders.
  • Foreign traders who are not yet licensed to conduct commercial activities in Vietnam are not allowed to directly display, introduce, goods and services. In this case, a Vietnamese trader must be hired
  • Goods and services displayed or introduced are not illegal business goods and services on the market.
  • It is forbidden to organize the display and introduction of goods and services or to use forms and means of displaying and introducing goods and services that are detrimental to national security, social order and safety,  public safety, environment, human health.
  • Do not display or introduce goods and services or use forms and means of display or introduction contrary to Vietnam’s historical, cultural, ethical traditions, fine customs and traditions.
  • Not to display or introduce goods or services that reveal state secrets.
  • Not to display or introduce other traders’ goods to compare with their own, except in cases where the goods being compared are fake goods or goods infringing intellectual property rights as prescribed by law.
  • Not to display or introduce samples of goods that are inconsistent with the goods being traded in terms of quality, price, utility, design, type, packaging, warranty period and other quality criteria in order to deceive client.

3. Some forms of display, introduction, goods and services

According to Article 120 of the 2005 Commercial Law, a number of forms of display, introduction, goods and services are displayed, including:

  • Open showrooms, introduce goods and services.
  • Displaying and introducing goods and services at trade centers or in entertainment, sports, cultural and artistic activities.
  • Organizing conferences and seminars with display and introduction of goods and services.
  • Displaying and introducing goods and services on the Internet and other forms as prescribed by law.

The above is a general overview of important legal issues related to the display and introduction, goods and services. Contact our BiLaw Firm for more detailed advice.

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