VietNamNet Bridge – Under current regulations, the selling price of goods and services during promotions must not be lower than 50 percent of the price prior to the sale.

Many businesses believe this policy is outdated and needs to be changed.

State agencies, for example, this month refused to allow Sheraton Saigon Hotel & Towers, a 5-star hotel in HCM City, to offer a  “buy 1, get 1 free” sale, under which clients would get a free glass of cocktail or beer between 4 pm and 6:30 pm.

The state management agency said the promotion violated the government’s Decree No 37 issued in 2006 on management of sale promotion activities.

The HCM City Tourism Association said many other hotels and travel firms had encountered this outdated regulation.

A lawyer commented that the regulation reflected excessive intrusion of the state in business operations.

He noted that many sellers and service providers want to stimulate demand by offering big discounts. However, with outdated regulations, businesses have found it difficult to boost sales and clear big inventories.

An official of the HCM City Tourism Association said that tourism agencies would be turned down by state agencies if they asked permission to offer such discounts.

However, many sales promotion campaigns with discounts of 80-90 percent continue to be run by some companies.

“I know a lot of companies have a “buy 1 and get 3 free” program. But they have not been punished,” he said.

Nguyen Thi Khanh said the city’s tourism association had sent a petition to state management agencies, requesting that the regulation on ceiling discount rates be abolished.

As the tourism sector is experiencing difficulties with the number of tourists on the decrease and low occupancy rates, Khanh said the state should think of creating more favorable conditions for hotels and travel firms to run promotions to boost demand, rather than setting restrictions that hinder business.

TBKTSG