1. Draft Advertising Law – What changes
will be adopted?
Vietnam, May 2012

2. Contents
1. Existing laws and regulations on advertising
2. Overview of draft Advertising Law– what changes will
likely be adopted
 Goods and Services Prohibited for Advertising
 Prohibited Advertising Acts: Current vs New
 Languages in Advertisement
 Advertising Caps
 State management of Advertisement
o Form (Means of Advertisement)
o Advertising Contents
 Advertisement with Foreign Elements

3. Current Legislations
 Ordinance on Advertising (2001)
o Decree 24/2003/ND-CP dated 16 July 2003
guiding the implementation of the Ordinance on
Advertising
o Circular 43/2003/TT-BVHTT dated 16 July 2003
guiding the implementation of Decree 24
o Circular 79/2005/TT-BVHTT dated 8 December
2005 amending Circular 43
o Circular 06/2007/TTLT-BVHTT-BYT-NN-BXD
dated 28 February 2007 on one-door ad licensing
procedures

4. Current Legislations
Territory:
o Decision 39/2009/QD-UBND dated 5 June 2009 on
advertising activities in Ho Chi Minh City
o Decision 50/2010/QĐ-UBND dated 27 July 2010
amending Decision 39
Special Products/Services:
Medical services, pharmaceuticals, cosmetic products,
vaccine, medical equipment, foods, insecticides…
o Circular 01/2004/TTLT-BYT dated 12 January 2004
on Advertising in the Medical Sector
o Circular 08/2004/TT-BYT dated 23 August 2004 on
management of functional foods
o Decree 21/2006/NĐ-CP dated 27 February 2006 on
Nutritional Foods for Kids

5. Current Legislations
 Competition Law (2004) (Article 45 on advertising
toward unhealthy competition)
 Commercial Law (2005), Section II on Commercial
Advertising (Articles 102 – 116)
o Decree 37/2006/ND-CP dated 4 April 2006
guiding the implementation of the Commercial
Law on Commercial Promotion
Activities(Chapter III, Articles 21-28)
 Law on Foods Safety (2010) (Article 43 on
advertising food products)

6. The Draft Advertising Law
Status:
 Will be put forward to National Assembly for
ratification this May
 Still subject to changes
Regulate:
 Advertising activities; rights and obligations of
organizations and individuals participating in
advertising activities, State management
 Excludes political propaganda

7. The Draft Advertising Law
Goods and services whose advertising are prohibited:
 Goods and services which are prohibited for trading
 Tobacco
 >=15 degree alcohol. (previously >=30 degree alcohol
only (Commercial Law). >=15 degree alcohol subject
to conditions; Medical alcohol may still be advertised –
Circular 43/2003)
 Prescription drugs
 Non-prescription drugs which are restricted
or must be used under doctors’ supervision
 Aphrodisiac products, goods.
 Shotguns and bullets, sporting weapons
and violence-inciting goods and services
 Other goods and services if added by the
Government

8. Prohibited Advertising Acts - Current
 Have consolidated all prohibitions in various
legislations
 Increase prohibited acts from 8 to16
 Most prohibited activities remain, including e.g. the
ambiguous “Advertisement which is lack of aesthetic,
contrary to the traditions, history, culture, ethics or fine
customs of the Vietnamese peoples”.
(Previously advertising with content and forms “against
aesthetics” are prohibited on TV and radio stations
between 18 – 20 hours, and on certain art performances,
entertainment programs (Circular 43)
 Direct comparison claims (previously “comparative
claims” under the Ordinance on Advertising)

9. Prohibited Advertising Acts - New
 Advertisement with a nature of preconception about
gender, preconception about disable people
o Ambiguity?
o “Preconception” vs requirement on “truthfulness”, “accuracy”
 Absolute advertising claims: “best”, “unique”, “best
quality”, “No. 1” or wordings with similar meaning
o Inconsistent with regional trends?
 Advertisement using louder speakers on means of
transportation (ads for cultural and sport programs and non-
profit services excepted but conditional: not in inner of cities/towns;
only between 7-11am, 2-7pm). Previously only restricted if
exceeding noise level allowed by environmental laws.
 Ads on electric poles, traffic sign posts, and public trees
 Forcing to distribute or receive advertisement

10. Languages of Advertisement
 If using a foreign languages on an advertisement
product, the size of the foreign language must not
exceed ½ the size of Vietnamese and must be printed
under Vietnamese; Vietnamese language must be
read first, followed by the foreign language
 Current regulations: Size of the foreign language must
be smaller than Vietnamese language
 Problems?
o Advertisements using image of the product (e.g. picture of a
shampoo pack)?
o Labels vs advertising under broad definition of “ads”
o Additional costs and complexity to manufacturers of products
for export?
o Constraints to export, production arrangements?

11. Advertisement Caps - Vietnam

12. Advertisement Caps – Other Countries

13. Advertisement Contents
 Must be truthful, accurate, clear, and must not cause
damages to manufacturers, traders and ad receivers
 Government to regulate requirements of contents of
special products, goods and services – ???
 Problems?
o Any advertising registrations/similar process with local
authorities still required?
o Advertising of food products still subject to 3 Ministries?
o Any circumstance for double layer approval (local
authorities, ad appraisal council)?

14. Advertisement Licensing/Appraisal
Advertising Appraisal Council (AAC)
 Consultancy organization under MOCI
 Assist MOCI Minister in review and conclude on
compliance with advertising law/regulations when
requested
 AAC members comprise representatives from MOCI,
from advertising professional organization and
independent experts
 Cases subject to appraisal to be regulated
 All key stakeholders entitled to request appraisal of ad
products by AAC

15. Advertisement Licensing/Appraisal
Advertising professional organization (APO)
 Protect legitimate interest of members
 Prepare industry codes of conducts for MOCI approval
 Organize implementation of industry codes of conducts
 Nominate representatives and refer independent
specialists to AAC when required
 Support State authorities in propaganda and
popularization of laws and regulations on advertisement

16. Advertisement Licensing - Form
 Management of ads in terms of means of advertisement

17. Advertisement Licensing – Content appraisal
 Management of ads in terms of contents of
advertisement

18. Advertisement Licensing – Content appraisal
 Concerns:
 Management of ad contents: still unclear
 Ad registration with local authorities continue to apply?
 For foods: ad content appraisal by 3 ministries + ad
registration?
 Any additional layer of approvals/licensing?

19. Advertisement with Foreign Elements
 Foreign organizations and individuals operating in Vietnam
are allowed to advertise their products, services and
operations in Vietnam.
 Those not operating in Vietnam must engage advertising
businesses operating in Vietnam for their advertisements.
 RO of foreign advertising companies: Government to
regulate the procedures and authority for establishment –
will separate procedures and requirements applied?
 Advertisements on websites of foreign organizations and
individuals providing cross border ad services which
generates turnover in Vietnam: subject to Ad Law and other
related laws/regulations.
 Same requirements/restrictions on advertising contents?
 Tax implications?

20. Thank you …