Vietnam Advertising A Decade Ago (Industry Review) Aiming to crack down on illegal advertisements and to keep advertising agencies in check, two principal legal documents were issued: Government Decree No 194/CP, dated December 31, 1994; and Circular No. 37/VHTT-TT dated July 1, 1995, from the Ministry of Culture and Information (MCI). These two documents consist of advertising regulations which govern trading, leasing, distribution, and circulation of culture-related products as well as advertising services. The MCI and city/provincial authorities are in charge of considering and approving all advertising licenses and permits. From the date of issuance, a certificate of permissible status for conducting advertising services is valid up to 3 years, and an advertisement license is valid up to 1 year. Advertisers or their advertising agents can apply for licensing extension. Prior to circulation, Video and information products must be censored and approved by the MCI. According to the regulations, advertisements must not appear on front page of newspapers or magazines. Advertising portion can not exceed: 10% of total content for print media and 5% for electronic media. Should a higher percentage is needed, media organizations must seek approval from the MCI. An advertising period catered to one advertisement is not to exceed 5 days in a daily newspaper, not to exceed 8 days and 5 times a day on television, and not exceed 5 days and 10 times a day on radio. Open-air forms of advertising activities are granted up to 1 year and can be extended. The MCI indicated that in order to protect Vietnamese culture and traditions, it will work with police departments to enforce advertising laws. Last year the Saigon Giai Phong and HCM City's Cong An (police) newspapers were printing reports about illegal advertising. The newspapers attacked foreign advertising companies for using local firms as their fronts to conduct illegal advertising activities. In early February 1996, in a campaign against "social evils" and "cultural poisons", Vietnamese police ordered a crack down on advertising billboards in Hanoi and Ho Chi Minh City. Many billboards including those of advertisers such as Coca-Cola, Kodak, Sony, Panasonics were covered with cloth or paper. At present, Ho Chi Minh City has more than 500 billboards, and Hanoi has half the figure. A large number of advertising billboards has been posted without proper licenses. In the past, advertising regulations had not been strictly implemented. Alcohol and tobacco advertisings have been banned. However, promotion is unofficially allowed in cafe shops, bars, and restaurants. The recent effort to enforce those regulations was two-fold: to make sure that advertisements have been properly licensed and taxed as well as not to offend Vietnamese hard-liners (convervative military personel and communist cadres) by keeping foreign-language advertisements as less dominant.as possible. Most press described the campaign as a sign of "anti -Western"; however, it is worth to note that the enforcement was applied against Pepsi, Kodak as much as against Samsung, Panasonics or Honda. Many foreign firms complained that advertising regulations are unclear and have not been enforced fairly. Legally, foreign firms are not allowed to fully function in advertising under representative status. However, most have circumvented the system by placing ads and signing agreements with local media buyers. To fully conduct their advertising businesses, they must have branch status, just like in other service sectors such as banking and law. There are more than 50 domestic and foreign advertising companies operating in Vietnam. About 30 are Vietnamese firms, of which more than half are state-owned. About ten world leading advertising companies have established their presence in Vietnam, including McCann Erickson, J. Walter Thompson, Bates, Saatchi & Saatchi, Ogilvy & Mather. Vietnamese advertising enterprises are permitted to sign agreements with foreign organizations and individuals to provide advertising services under the form of a business cooperation contract, with maximum duration of 5 years. Since major portion of advertising revenue has come from international clients, foreign advertising partners have been in charge of marketing and management, while local firms are responsible for contract implementation. Advertising revenue had jumped from a humble figure of more than $US 10 million in 1993 to $US 70 million in 1994. Vietnam reportedly earned $US 140 million last year, and expects to get more than $US 250 million in 1996. TV accounts for half of advertising revenue, followed by newspapers and magazines (more than 200) with 25%, radio and billboards 25%. Hanoi and Ho Chi Minh City have attracted most of advertising dollars. Vietnam Advertising Regulations.