Conditions to be complied when performing cross-border advertising activities in Vietnam

In the context of the rapid development of the advertising and marketing market, cross-border advertising activities have become a vibrant field, opening up great opportunities for businesses with the goal of expanding the scope of its products and services advertisement. However, to ensure that advertising activities are legal, advertising service providers need to clearly understand and comply with the regulations set forth in Vietnam’s advertising law. This article will analyze in detail the most important conditions and regulations that businesses need to pay attention to when participating in cross-border advertising activities in Vietnam. 

Conditions to be complied when performing cross-border advertising activities in Vietnam

1. Definition of cross-border advertising activities in Vietnam 

Clause 1, Article 1 of Decree 70/2021/ND-CP amending a number of articles of Decree 181/2013/ND-CP of the Government detailing the implementation of a number of articles of the Law on Advertising stipulates: “Provision of cross-border advertising services in Vietnam is the use of websites to provide advertising services for users in Vietnam from service providing equipment systems located outside of Vietnamese territory and earn revenues in Vietnam by foreign organizations and individuals.” From the above definition, it can be understood that the provision of cross-border advertising services in Vietnam is essentially the use of advertising service websites supplied by advertising service providers for advertising users. The equipment provided to these sites is located outside of Vietnam. 

Besides, cross-border advertising service provision websites mentioned in this Decree are information systems using one or more than one website in the form of symbols, numbers, letters, images and sounds and other forms of information to provide network users with services of information storage, provision, use, search and exchange, sharing of sounds and images, and creation of online chats and forums to provide advertising services. 

2. Obligations to comply with when participating in providing cross-border advertising services in Vietnam 

Both advertising service providers, advertising publishers and advertisers both domestically and internationally when participating in provision of cross-border advertising services in Vietnam must comply with Vietnamese laws regarding advertising, regulations on network security and regulations on management, provision and use of Internet services and online information; must pay tax according to tax laws as prescribed in Clause 1, Article 1 of Decree 70/2021/ND-CP. 

  • Concerning organizations and individuals providing cross-border advertising services in Vietnam with foreign nationality, those organizations and individuals must comply with the obligations of advertising service providers according to Clause 2, Article 13 Law on Advertising 2012. Besides, organizations and individuals must also ensure the implementation of the obligations in Clause 1, Article 1 of Decree 70/2021/ND-CP as follows: 
    • Firstly, organizations and individuals must notify information such as organization name, transaction name, head office address where advertising service provision activities are registered; Location of main server system providing services and server system located in Vietnam (if any); point of contact. To start a cross-border advertising service business in Vietnam, organizations and individuals must ensure they send a notification to the competent state agency through direct sending, or by post, or via electronic means to the Ministry of Information and Communications (Department of Radio, Television and Electronic Information); 
    • Secondly, organizations and individuals are not allowed to place advertising products in content that violates the law as prescribed in Clause 1, Article 8 of the Law on Cyber Security, Article 28 of the Law on Intellectual Property; 
    • Thirdly, organizations and individuals must prevent and remove information that violates the law at the request of the Ministry of Information and Communications and competent authorities. Regarding cases showing signs of violating the law, organizations and individuals are responsible for providing violation information to competent authorities upon request. 

 

  • Regarding organizations and individuals who are advertising publishers and advertisers when entering into contracts with advertising service providers (including domestic and foreign organizations and individuals providing cross-border advertising services), organizations and individuals have the rights and obligations:
    • Requesting advertising service providers to not advertise via illegal contents mentioned in Clause 1 Article 8 of the Cybersecurity Law and Article 28 of the Law on Intellectual Property; 
    • Requesting advertising service providers to take technical solutions to enable advertisement distributors and advertisers in Vietnam to control and remove advertisements against Vietnamese law on service provision systems. 

Besides, organizations and individuals advertising service providers cooperating with foreign entities in providing cross-border advertising services in Vietnam shall submit reports on an annual basis (before December 31) or upon request on provision of cross-border advertising services in Vietnam to the Ministry of Information and Communications (Authority of Broadcasting and Electronic Information). The above report must be made according to Form 01 issued with Decree 70/2021/ND-CP and sent directly, by post or via electronic means. 

On the other hand, the Ministry of Information and Communications is the main agency carrying out management responsibilities for providing cross-border advertising services. The responsibilities of the Ministry of Information and Communications and relevant agencies are specified in detail in Clause 2, Article 1 of Decree 70/2021/ND-CP. 

Disclaimers:

This article is for general information purposes only and is not intended to provide any legal advice for any particular case. The legal provisions referenced in the content are in effect at the time of publication but may have expired at the time you read the content. We therefore advise that you always consult a professional consultant before applying any content.

For issues related to the content or intellectual property rights of the article, please email cs@apolatlegal.vn.

Apolat Legal is a law firm in Vietnam with experience and capacity to provide consulting services related to International Commercial & Trade  and contact our team of lawyers in Vietnam via email info@apolatlegal.com.

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