On the morning of October 28, Minister of Industry and Trade Le Manh Hung explained the proposal while presenting amendments to Vietnam's trade, competition, foreign trade and consumer protection laws before the National Assembly.
Delegates discussed the issue as one online purchase can receive several types of incentives at the same time. They called for transparent calculations, clear responsibility for each party and controls against subsidies being used to drive out competitors.
Keeping the limit while allowing flexibility
Le Manh Hung said the government proposes retaining promotion limits to support fair competition and protect small and medium-sized businesses. The proposal would also allow more flexibility for centralized promotion programs.
The minister said vouchers are legally complex and varied. Their effects should be assessed further before the rules are written into law, in line with the conclusions of the Standing Committee of the National Assembly.
Nguyen Ngoc Son said an e-commerce transaction can use a discount code, voucher, cashback, loyalty points and price support from several parties at once. If the law does not set a principle for calculating the limit, different interpretations could arise and overlap with competition law.
"Overly strict regulation would limit demand stimulation, while a lack of control could allow large platforms to use subsidies to drive out competitors," Son warned. He proposed principles of transparency, equality and fair competition, along with a method for determining the limit when several incentives are applied at once.
How much of the promotion does the buyer receive?
Tran Quoc Tuan, director of the Department of Industry and Trade of Vinh Long province, proposed clarifying how incentives are calculated in programs involving several parties. He was commenting on promotion limits and the maximum discount under Article 94, Clause 4 of the Trade Law.
The draft assigns the Ministry of Industry and Trade responsibility for setting promotion limits, maximum discounts and the application of competition law when there are signs of violations. On an e-commerce platform, the seller may cut the price, the platform provide a promotional code and a bank refund part of the payment.
"The calculation of the incentive actually received by the buyer needs to be standardized. The reference price and conditions for the discount should be disclosed, and each party's responsibility should be clear to prevent double counting," the delegate said. Tuan proposed that the law set the principles while the minister provides the detailed method.
Clear rules for calculating incentives would protect buyers, help businesses comply with the law and provide a common legal basis for inspections. "When the value of an incentive and the responsibility for delivering it are transparent, the digital market can develop sustainably," Tuan said.
The delegates therefore also raised the question of how to determine the value of a promotion supported by several parties at once.
Clear responsibility for online violations
To regulate online commerce, Tuan proposed a coordination mechanism between the National Competition Commission, market surveillance authorities and the state agency responsible for consumer protection.
The mechanism should clarify responsibility for receiving, exchanging and transferring information, documents and electronic evidence, designate the body handling a case and set coordination deadlines.
Information about goods, advertising methods and competitive practices in one online transaction may fall under several agencies. If the rules for transferring information and coordinating verification are unclear, cases may take longer to resolve and residents and businesses may have to submit the same information repeatedly.
The delegate proposed clear rules so central and local agencies can apply them consistently, act within their authority and avoid missing or duplicating a case.
Le Manh Hung said the draft clarifies criteria for identifying a dominant position and significant market power. The factors include consumer data, network effects, switching costs and the digital ecosystem.
A company may have a small market share but still possess data or technology that gives it significant market power, allowing it to influence the market or prevent other companies from entering.
The minister said the draft would be revised around three goals: greater delegation of authority, fewer administrative procedures and compliance costs, and the removal of obstacles to production and business while protecting the lawful rights and interests of residents and companies.
Sources: Dân Trí
