Legal regulations on business activities in the field of Advertising

Pursuant to Decision No. 3564/QD-BVHTTDL dated November 21, 2024 of the Minister of Culture, Sports and Tourism, the Legal Department has compiled documents providing legal information and industry policies related to business activities in the fields of culture, sports and tourism. The Ministry of Culture, Sports and Tourism's Electronic Information Portal posts questions and answers on legal regulations on business activities in the field of Advertising.

REGULATIONS OF LAW ON BUSINESS ACTIVITIES IN

ADVERTISING FIELD

Question 1: What does the law say about advertising service providers?

Reply:

- According to Clause 6, Article 2 of the Law on Advertising: An advertising service provider is an organization or individual that performs one, several or all stages of the advertising process under an advertising service provision contract with an advertiser.

- According to the provisions of Article 6: Advertising service contracts are implemented in accordance with the provisions of law.

Question 2: When doing advertising business, what products, goods and services are prohibited from advertising?

Reply: According to Article 7 of the 2012 Law on Advertising and Article 70 of the 2024 Law on Management and Use of Weapons, Explosives and Supporting Tools, the following products, goods and services are prohibited from advertising:

1. Goods and services prohibited from trading according to the provisions of law.

2. Tobacco.

3. Wine with alcohol concentration of 15 degrees or more.

4. Breast milk substitutes for children under 24 months of age, nutritional supplements for children under 6 months of age; feeding bottles and artificial nipples.

5. Prescription drugs; non-prescription drugs but recommended by competent state agencies for limited use or use under medical supervision.

6. Products and goods of a stimulating nature.

Weapons, explosives, support tools; products and goods that incite violence.

8. Other products, goods and services prohibited from advertising as prescribed by the Government when they arise in practice.

Question 3: When doing advertising business, what behaviors should be noted as prohibited by law?

Reply: According to Article 8 of the 2012 Law on Advertising, prohibited acts in advertising activities include:

1. Advertising prohibited products, goods, and services.

2. Advertisements that reveal state secrets, harm national independence, sovereignty , security and defense.

3. Advertisements that lack aesthetics and are contrary to Vietnamese history, culture, ethics, and customs.

4. Advertising affects urban aesthetics, traffic safety and social security.

5. Advertisements that negatively affect the dignity of the National Flag, National Emblem, National Anthem, Party Flag, national heroes, cultural celebrities, leaders, and leaders of the Party and State.

6. Advertisements that are racist, infringing on freedom of belief, religion, gender prejudice, or prejudice against people with disabilities.

7. Advertisements that insult the reputation, honor, and dignity of organizations and individuals.

8. Advertisements that use images, words, or writings of individuals without their consent, except where permitted by law.

9. False or misleading advertising about the business capacity, the ability to provide products, goods and services of the organization or individual trading in products, goods and services; about the quantity, quality, price, uses, design, packaging, brand, origin, type, service method, warranty period of registered or announced products, goods and services.

10. Advertising by using direct comparison methods on price, quality, and efficiency of using one's products, goods, and services with the price, quality, and efficiency of using similar products, goods, and services of other organizations and individuals.

11. Advertisements using the words "best", "only", "best", "number one" or words of similar meaning without legal documents proving it according to regulations of the Ministry of Culture, Sports and Tourism.

12. Advertisements containing unfair competition content as prescribed by the law on competition.

13. Advertising that violates intellectual property laws.

14. Advertisements that cause children to think, speak, or act against morality or good customs; negatively affect the health, safety, or normal development of children.

15. Forcing agencies, organizations, or individuals to advertise or accept advertisements against their will.

16. Hanging, placing, pasting, or drawing advertising products on electric poles, traffic signal poles, and trees in public places.

Question 4: What specific rights do advertising service providers have?

Answer: Pursuant to Clause 1, Article 13 of the 2012 Law on Advertising, advertising service providers have the following rights:

a) Decide on the form and method of advertising service business;

b) To be provided by the advertiser with truthful and accurate information about the organization, individual, product, goods, services advertised and documents related to advertising conditions;

c) Participate in giving opinions during the process of developing local advertising plans and receive information from local advertising authorities about outdoor advertising plans;

d) Request for appraisal of advertising products.

Question 5: What are the specific obligations of advertising service providers?

Answer: According to the provisions of Clause 2, Article 13 of the 2012 Law on Advertising, advertising service providers have the following obligations:

a) Operate within the scope and field specified in the business registration certificate and comply with the provisions of law on advertising;

b) Check documents related to advertising conditions of organizations, individuals, products, goods, and services to be advertised and carry out related procedures according to advertising service contracts;

c) Be responsible for advertising products directly produced by yourself;

d) Provide documents related to advertising products when requested by the advertising recipient or competent state agency.

3. Exercise other rights and obligations as prescribed by law.

Question 6: What are the rights and obligations of the advertiser?

Answer: According to Article 14 of the 2012 Law on Advertising, advertisers have the following rights and obligations:

1. Advertise on your own vehicles and collect service fees according to the law.

2. Check documents related to advertising conditions of organizations, individuals, products, goods and services to be advertised.

3. Provide documents related to the advertising product when requested by the advertising recipient or competent state agency.

4. Implement signed advertising distribution contracts and be directly responsible for advertising products implemented on advertising media under one's management responsibility.

5. Request for advertising product appraisal.

6. Exercise other rights and obligations as prescribed by law.

Question 7: What are the rights and obligations of the lessor of advertising locations and means?

Answer: Article 15 of the 2012 Advertising Law stipulates that the lessor of advertising locations and means has the following rights and obligations:

1. Select advertisers and advertising service providers.

2. Be responsible for the legal basis of leasing advertising locations, advertising media and the safety of advertising media; properly perform the obligations in the signed contract for leasing advertising locations and media.

3. Jointly responsible in case of installation or construction of advertising works not in accordance with the construction permit or without a construction permit.

4. Exercise other rights and obligations as prescribed by law.

Question 7: When advertising on billboards and banners, what procedures must service providers follow?

Reply: According to the provisions of Articles 27, 29, 30 of the Advertising Law, to advertise on billboards and banners, service providers must carry out notification procedures. advertising products, specifically as follows:

- Organizations and individuals wishing to advertise on billboards and banners must directly submit 01 set of notification documents to the Department of Culture, Sports and Tourism/Department of Culture and Sports at least 15 days before advertising.

- Profile includes:

(1) The advertising product announcement document clearly states the content, time, location of the advertisement, and the number of billboards and banners;

(2) A copy of the business registration certificate of the advertising service provider or the business registration certificate of the advertiser in case of self-advertising;

(3) Copies of documents proving the conformity of products, goods and services according to the provisions of law or documents proving eligibility for advertising according to the provisions of Article 20 of the Law on Advertising;

(4) A copy of the event organization document of the organizing unit in case of advertising for events or social policies;

(5) The color printed advertising product mockup must have the signature of the advertising service provider or the advertiser in case of self-promotion. In case the advertising service provider or advertiser is an organization, the organization's seal must be included;

(6) Documents proving ownership or right to use the billboard; ownership or right to use the advertising location for the banner;

(7) Perspective drawing of billboard location;

(8) A copy of the construction permit for advertising works for the type of billboard that requires a construction permit as prescribed in Clause 2, Article 31 of the Law on Advertising.

- Within 05 days from the date of receiving a complete and valid dossier, the Department of Culture, Sports and Tourism/Department of Culture and Sports shall respond in writing to the organization or individual notifying the advertising product. In case of disagreement with the contents of the dossier notifying the advertising product of the organization or individual, the Department of Culture, Sports and Tourism/Department of Culture and Sports must respond, stating the reasons and requesting the content to be edited.

Question 8: What does the law stipulate about advertising service business related to construction of advertising works ?

Answer: Article 31 of the Law on Advertising specifically stipulates as follows:

1. The construction of outdoor advertising screens, signs, billboards that are independent or attached to existing construction works must comply with the provisions of this Law, other relevant legal provisions and local outdoor advertising planning.

2. The construction of outdoor advertising screens, signs, billboards that are independent or attached to existing construction works must obtain a construction permit from the local construction authority in the following cases:

a) Construction of outdoor advertising screens with a single-sided area of ​​20 square meters (m2) or more;

b) Construction of signs and billboards with an area of ​​one side over 20 square meters (m2) with a metal frame structure or similar construction materials attached to existing construction works;

c) Stand-alone billboards with a single-sided area of ​​40 square meters (m2) or more.

3. Application for construction permit for advertising works includes:

a) Application for construction permit for advertising works;

b) A copy of the business registration certificate of the organization or individual requesting a license to construct an advertising work;

c) Certified copy of one of the following documents: land use right certificate; agreement document or land lease contract in accordance with the provisions of the law on land for independent advertising works; site lease contract between the investor in the construction of the advertising work and the owner or legal user for the advertising work attached to an existing construction work or a document notifying the winning bid result in the case of an advertising location in the planning that must be organized for bidding;

d) In case the advertising work is attached to a pre-existing work, there must be a written agreement or contract between the investor in the construction of the advertising work and the owner or person assigned to manage the pre-existing work;

d) Design drawings of a legal design organization showing the location of the floor plan, cross-section, typical elevation; the foundation plan of the project with the signature and seal of the investor constructing the advertising project. In case the advertising project is attached to a pre-existing project, the design drawings must show the solution to connect the advertising project to the pre-existing project.

4. The order and procedures for granting construction permits for advertising works are as follows:

a) Organizations and individuals requesting a construction permit for advertising works must submit their application to the local construction authority;

b) In case the advertising location is located in the advertising planning approved by the provincial People's Committee, within 15 days from the date of receipt of valid documents, the local construction authority shall issue a construction permit for advertising works to the organization or individual. In case the permit is not issued, a written response must be given stating the reasons;

c) In case the locality has not approved the advertising plan, within 02 working days from the date of receiving valid documents, the local construction authority shall send a written request for opinions to relevant departments, branches and sectors. Within 05 working days from the date of receiving the written request for opinions from the local construction authority, the above departments, branches and sectors must respond in writing to the local construction authority. Within 13 days from the date of receiving the opinions from the above departments, branches and sectors, the local construction authority must issue a construction permit for advertising works to the organization or individual. In case of not issuing a permit, a written response must be given stating the reasons.

Question 9: What does the law stipulate about foreign investors doing advertising business in Vietnam?

Reply:

According to the provisions of Decree No. 31/2021/ND-CP dated March 26, 2021 of the Government detailing and guiding the implementation of the Investment Law, advertising service business activities are activities that restrict market access for foreign investors. The restrictions are stipulated in Articles 39, 40, and 41 of the Advertising Law as follows:

- Foreign organizations and individuals operating in Vietnam are allowed to advertise their products, goods, services and activities in Vietnam according to the provisions of law.

- Foreign organizations and individuals not operating in Vietnam who need to advertise their products, goods, services and activities in Vietnam must hire Vietnamese advertising service providers to do so.

- Foreign organizations and individuals are allowed to cooperate and invest with Vietnamese advertising service providers in the form of joint ventures and business cooperation contracts. Foreign cooperation and investment in advertising activities must comply with investment laws.

- Representative offices of foreign advertising enterprises in Vietnam are regulated as follows:

1. Foreign advertising enterprises are allowed to establish representative offices in Vietnam.

2. A representative office is allowed to operate when it has a license from the People's Committee of the province where the foreign enterprise requests to establish a representative office.

3. Representative offices are only allowed to promote advertising, not directly provide advertising services.

Question 10: What are the legal regulations on the procedures for granting a License to establish a representative office of a foreign advertising enterprise in Vietnam?

Answer: According to the provisions of the 2012 Advertising Law, Decree No. 181/2013/ND-CP dated November 14, 2013 of the Government detailing the implementation of a number of articles of the Advertising Law, the order and procedures for granting a License to establish a representative office of a foreign advertising enterprise in Vietnam are as follows:

- Foreign advertising enterprises directly submit 01 (one) set of application documents for a License to establish a Representative Office to the People's Committee of the province/city directly under the Central Government where the Representative Office is located.

- Profile includes:

(1) Application for a License to establish a Representative Office signed by an authorized representative of the foreign advertising enterprise according to the form prescribed by the Ministry of Culture, Sports and Tourism;

(2) A copy of the business registration certificate or equivalent documents of the foreign enterprise certified by the competent authority where the enterprise is established or registered for business;

(3) Audited financial statements or other equivalent documents proving the existence and operation of the foreign advertising enterprise in the most recent fiscal year;

(4) The documents specified in Points 2 and 3 above must be translated into Vietnamese and certified by a Vietnamese diplomatic mission or consular agency abroad and consular legalization must be carried out in accordance with the provisions of Vietnamese law.

- Within 10 days from the date of receipt of a complete and valid dossier, the Provincial People's Committee shall consider and issue a License to establish a Representative Office and send a copy of the license to the Ministry of Culture, Sports and Tourism. In case the dossier is invalid, within 03 days from the date of receipt of the dossier, the Provincial People's Committee shall send a written request to the foreign advertising enterprise to supplement and complete the dossier.

Question 11: What are the legal regulations on the procedures for re-issuing a license to establish a representative office of a foreign advertising enterprise in Vietnam?

Answer: According to the provisions of the 2012 Advertising Law, Decree No. 181/2013/ND-CP dated November 14, 2013 of the Government detailing the implementation of a number of articles of the Advertising Law, the order and procedures for re-issuing the License to establish a Representative Office of a foreign advertising enterprise in Vietnam are as follows:

- In case of re-issuance:

a) Change the name or place of registration of a foreign advertising enterprise to another country;

b) Changes in the operations of foreign advertising enterprises;

c) License is lost or torn.

- Application for re-issuance:

(1) Application for re-issuance of the License to establish a Representative Office signed by the authorized representative of the foreign advertising enterprise according to the form prescribed by the Ministry of Culture, Sports and Tourism;

(2) Original copy of the License to establish a Representative Office that has been granted. In case the License is lost, there must be a certificate from the police agency where the License was lost.

- Procedure:

a) Foreign advertising enterprises requesting to re-issue the License to establish a Representative Office shall directly submit 01 (one) set of application documents to re-issue the License to establish a Representative Office to the People's Committee of the province/city directly under the Central Government where the Representative Office is located.

b) Within 10 days from the date of receipt of a complete and valid dossier, the Provincial People's Committee shall consider and issue a License to establish a Representative Office and send a copy of the license to the Ministry of Culture, Sports and Tourism. In case the dossier is invalid, within 03 days from the date of receipt of the dossier, the Provincial People's Committee shall send a written request to the foreign advertising enterprise to supplement and complete the dossier.

Question 12: What are the legal regulations on the order and procedures for amending and supplementing the License to establish a representative office of a foreign advertising enterprise in Vietnam?

Answer: According to the provisions of the 2012 Advertising Law, Decree No. 181/2013/ND-CP dated November 14, 2013 of the Government detailing the implementation of a number of articles of the Advertising Law, the order and procedures for amending and supplementing the License to establish a representative office of a foreign advertising enterprise in Vietnam are as follows:

- In case of amendment or supplement:

a) Change of name;

b) Change the scope of operations;

c) Change of head;

d) Change of head office location within a province or centrally-run city.

- Foreign advertising enterprises requesting to amend or supplement the License to establish a Representative Office shall directly submit 01 set of application documents for a License to establish a Representative Office to the People's Committee of the province/city directly under the Central Government where the Representative Office is located.

- Profile includes:

(1) Application for amendment and supplementation of the License to establish a Representative Office of a foreign advertising enterprise signed according to the form prescribed by the Ministry of Culture, Sports and Tourism;

(2) Certified copy of the Representative Office Establishment License.

- Within 10 days from the date of receiving a complete and valid dossier, the Provincial People's Committee shall be responsible for issuing a License for amendment or supplementation and sending a copy of that license to the Ministry of Culture, Sports and Tourism.

 

Source: https://bvhttdl.gov.vn/quy-dinh-cua-phap-luat-ve-hoat-dong-kinh-doanh-trong-linh-vuc-quang-cao-20241230104833498.htm