HO CHI MINH - A draft law proposed by the Vietnam’s Ministry of Culture, Sports and Tourism will abolish licensing in order to boost out-of-home advertising.
The Ministry has proposed a draft law that will allow firms to advertise on outdoor platforms such as billboards, public transport, public places and electronic screens without applying for a license.
Vietnam currently has strict restrictions on its outdoor advertising sector and firms need to obtain a provincial and federal license before they are allowed to place out-of-home advertisements.
This proposal to abolish licenses is expected to boost Vietnam’s outdoor advertising market.
Statistics from the government show that outdoor advertising only accounts for about ten per cent of Vietnam’s advertising expenditure. Currently, terrestial TV and press ads account for the largest share of Vietnam’s advertising expenditure.
The draft law also proposes that advertising firms will be held responsible for content, although it is believed that management agencies will carry out spot-checks to eliminate content and advertising forms that violated regulations. Some controls, such as safety regulations and content are expected to remain.
Jim Goh, CEO of Briq who has been involved in the Vietnamese market for close to a decade, said that he was surprised by the draft law. “It would be utter chaos if it becomes a free for all,” he said.
While Deboo Mohanty, CEO of Vivaki in Vietnam says that the outdoor sector will definitely pick up if restrictions are relaxed. "The city has a lot of heritage that might now be obscured, but this is good news for the advertising business."
0 Comments