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Decree details implementation of new law on advertising

Update: November, 27/2013 - 08:59
The Government recently issued Decree No 181/2013/ND-CP (14 November 2013) providing details on implementation of a number of articles of Law on Advertising in relation to advertising special goods or services, advertising on websites of foreign organisations or individuals providing cross-border advertising services, outdoor advertising and representative offices of foreign advertising enterprises in Viet Nam.

Advertising special goods or services

Special goods or services listed in the Decree are advertised only after obtaining the verification on advertisement contents of the competent bodies (the Ministry of Health, the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade or their authorised bodies). The list of special goods or services advertised includes medicines, cosmetic products, foods, food additives, chemicals, medical equipment, milk, nutritional products used for children, medical services, pesticides, fertiliser and the like.

Advertising on websites of foreign organisations or individuals providing cross-border advertising services

A website of foreign organisations or individuals providing cross-border advertising services and earning revenue from advertising in Viet Nam means it has a server located in the foreign country and provides advertising information to users in Viet Nam. The website must satisfy Viet Nam's requirements regarding management, supply and use of internet services and network information.

Vietnamese organisations or individuals desiring to advertise their goods or services on the website must do it through an advertising service provider. The owner of the website must notify in writing to the Ministry of Culture, Sports and Tourism the name, address, main business profession of the Vietnamese advertising service provider who is authorised by the website owner to provide advertising services.

To implement contracts for advertising on the website in Viet Nam, the advertising service provider needs to function as an advertising services business established and operated under Vietnamese laws and is a partner conducting advertising services under a contract signed with the owner of the website.

The advertising service provider is responsible for goods or services advertised, supporting, advertising and exploiting advertisements on the website. The advertising service provider also is required to submit a periodical six months report on implementation of advertising to the Provincial Department of Culture, Sports and Tourism.

Master plan for outdoor advertising

Areas planned for outdoor advertising are required to not be in the transportation safety corridor, dyke or national electricity grid. The areas must not affect the city architecture. Especially, the areas for political or social publicity activities and commercial advertisement must be determined. Provincial People's Committee is responsible for preparing and approving of a master plan for outdoor advertising, amending the master plan and publishing the master plan in the province.

Foreign advertising enterprise's representative office in Viet Nam.

A foreign advertising enterprise is permitted to establish its representative office in Viet Nam, except if there is proof that such an establishment is harmful to Viet Nam's independence, national sovereignty, security, defence, historical tradition, culture, ethics, habits and customs. The Provincial People's Committee, responsible for the area where the representative's office is located, has authority to grant a licence for the representative's office establishment.

The representative office can promote advertising but cannot directly conduct the business of advertising its services.

The licence for the establishment of representative office is withdrawn if the representative office provides the advertising services. Additionally, the licence is also withdrawn if the representative office operates for the wrong purpose or in unconformity with the licence, it fails to report on its operations within two consecutive years, fails to operate within six months from the date of the licence or fails to report to a governmental body within six months from the date of receipt of the governmental authority's request.

This Decree takes effect on 01 January 2014 and replaces the Government Decree No 24/2003/ND-CP (13 March 2003).—VNS

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