31 March, 2020
On 24 February 2020, the Government issued Decree No. 24/2020/ND-CP ("Decree 24") detailing a number of articles of Law No. 44/2019/QH14 on Prevention and Fighting against the Negative Effects of Alcohol ("Alcohol Law"). Decree 24 took effect on 24 February 2020.
The Decree provides for new restrictions on the consumption and advertisement of, as well as other activities related to alcohol. Below is a brief summary of these restrictions:
1. Expansion of the list of places where alcoholic beverage consumption is prohibited
The current Alcohol Law provides for a list of places where the consumption of alcoholic beverages is prohibited. This list includes:
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Healthcare facilities;
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Educational institutions during teaching, learning and working hours;
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Nursing care centers and recreational centers for minors;
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Rehabilitation centers, compulsory educational institutions, reform schools, prisons and other detention facilities;
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Social protection centers; and
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Workplaces belonging to regulatory authorities, political organizations, socio-political organizations, socio-political- professional organizations and public service providers during working hours, except for places where the trade in alcoholic beverages is allowed.
Decree 24 expands the list mentioned above to cover a number of new public places, including:
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parks;
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bus stations; and
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cinemas, theatres, cultural and sport establishments during the time of organizing activities according to their main tasks and
functions, except in cases of culinary and cultural festivals.
2. Restrictions on actors consuming alcohol on TV, on stage and in film
Under Decree 24, the use of images of actors consuming alcohol in cinematography and television works must comply with the following conditions:
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Works must not feature prohibited acts under Article 5 of the Alcohol Law (e.g. selling liquor to a minor) or acts infringing Articles 10 and 19 (e.g. selling liquor in a prohibited place) of the Alcohol Law, except for the purpose of criticizing or condemning such acts;
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Works must not praise an individuals' or organizations' success in manufacturing and selling alcohol;
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The use of images of actors consuming alcohol for artistic purposes is only allowed when necessary to (i) portray a historical figure, (ii) portray a historical period or (iii) criticize or condemn the consumption of alcohol; and
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The use of images of actors consuming alcohol for artistic purposes in other cases must be approved by the competent state authorities.
3. Advertisements for alcoholic beverages under 15% ABV
Decree 24 requires that online advertisements for alcoholic beverages, including advertisements on visual or social media platforms must, among other things, display a clear written warning on the harmful effects of alcohol that occupies at least 10% of the area of that advertisement. In regards to audio and broadcast advertisements, warnings must be read aloud and at the same speed as all other content of the advertisement. Decree 24 provides for three specific warnings that must be displayed on alcohol advertisements, including “drinking alcoholic beverages can cause traffic accidents”, “drinking alcoholic beverages can affect foetal health” and “people under the age of 18 are not allowed to drink alcoholic beverages". However, Decree 24 is unclear as to whether an advertiser can select any one of these three specific warnings or whether they must follow another rule for their selection.
Advertisements appearing on electronic platforms, including social media, must contain mechanisms to filter and block access to minors and must not (i) be displayed until visitors declare their age or (ii) be linked with or promote user accounts, websites, channels or any others means of information on the internet used by minors. Decree 24 takes a stringent approach towards existing advertisements that do not meet these new requirements by stipulating that alcohol advertisements which fail to meet the standards mentioned above, but were implemented prior to the effective date of this Decree, can only remain active until the end of the advertising contract and may not be renewed.
Under the Alcohol Law, alcohol products must not be advertised on visual or audio programs for children or between 6 p.m. to 9 p.m., with the exception of pre-installed advertisements during live sports broadcastings licensed from overseas. Decree 24 provides a further exception for advertisements of alcoholic beverages under 5.5% ABV appearing between 6 p.m. and 9 p.m. provided that the advertisement is for the venue sponsor of a regional, continental or world sporting event held in Vietnam during live broadcasting.
According to Decree 24, outdoor advertising for alcoholic beverages under 5.5% ABV must meet national technical standards and appear at a minimum distance of 200 meters from educational and recreational institutions for minors, and at a minimum distance of 100 meters from vocational training establishments and universities, except for signboards of alcohol beverage trading establishments. Any outdoor advertising placed within these restrictions before the effective date of Decree 24 may not be renewed after the end of the advertising contract.
4. E-Commerce
Decree 24 provides for the following additional restrictions on the sale and promotion of alcohol on e-commerce platforms:
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Online sellers will be required to include an application for internet users to declare their name and age before accessing information and to declare their name, age, residential address and cashless payment method prior to processing purchasing information. Retailers will also be required to check that consignees are at least 18 years old before completing any deliveries of alcoholic beverages;
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E-commerce sites are prohibited from linking information on alcoholic beverages to minors' user accounts and other online platforms for minors; and
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Organizations and individuals selling alcoholic beverages on e- commerce platforms before the effective date of Decree 24 shall be required to implement the above requirements by 30 June 2020.
The Alcohol Law and subsequent Decree place stringent conditions and restrictions on alcohol manufacturers and distributors as well as consumers. These regulations represent a concerted effort to clamp down on the sale and consumption of alcohol within Vietnam. The ensuing effects of these strict regulations will impact all aspects of the alcohol supply chain as well as related third parties, such as advertisers, venues and marketing firms.
For further information, please contact:
Yee Chung Seck, Managing Lawyer, BMVN International LLC,
member of Baker McKenzie International
tmh@bmvn.com.vn
