Handling Violations of Competition Laws in Vietnam

Foreign brands are increasingly popular in the Vietnam market as Vietnam economy integrates into world economy.The openings of economy creates opportunities to attract foreign investment into Vietnam through establishment of companies. To continue to protect the fair competition, and interest of consumer, it is important that the Vietnam state authority ensures the business environment. Accordingly, violations related to competition will be handled in accordance with the law.

Competition Lawyers in Vietnam

Acts of violation of competition under Vietnam laws are defined in Article 1 of Decree 71/2014 / ND-CP, including: violations of regulations on control of acts of restraint of competition; acts of violating regulations on acts of unfair competition; violations of other provisions of law on competition. According to the provisions of law, the above acts shall be subject to the forms of punishment and fine. The most common and most powerful impact on businesses and consumers are the violation of unfair competition.

In practice, there are a number of instances where unfair competition acts are associated with intellectual property rights violations, which have a significant impact on business activities of enterprises in the same field; violation of business secrets; activities of advertising that are prohibited i.e. make direct comparison against competitor, provide falsified or confused information to consumers…

If committed acts of unfair competition, the violator will be subject to fine level from VND 10,000,000 to VND 140,000,000. At the same time, additional measures and remedies will be applied, depending on the seriousness of the breach, such as the revocation of the enterprise registration certificate; deprivation of the right to use licenses or practice certificates; confiscation of material evidences and means used to commit the violation, including the confiscation of profits earned from the commission of the violation; to restructure the enterprise, rectify to the public…

From the management of state authority, the detection and handling of unfair competition acts create conditions for enterprises to have equal opportunities in the market economy. From the enterprise’s perspective, it is important to continuously review its business activities in Vietnam to ensure compliance to competition law by its lawyers.

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What Laws Will be Applied for Dispute Settlement by Arbitration in Vietnam?

Under Article 14 of Law on Commercial Arbitration, applicable laws for dispute settlement by arbitration in Vietnam will be Vietnamese if the case involve no foreign element.  If dispute involving foreign invested enterprise, parties need to agree on language.  If parties do not have such language agreement for arbitration, the arbitration council will decide. In particular:

 Arbitration Lawyers in Vietnam

For a dispute involving no foreign element, the arbitration council shall apply Vietnamese law for settling the dispute.

For a dispute involving foreign elements. the arbitration council shall apply the law selected by the parties. If the parties have no agreement on the applicable law, the arbitration council shall decide to apply a law it sees the most appropriate.

When the Vietnamese law or law selected by the parties contains no specific provisions concerning the dispute, the arbitration council may apply international practices for settling the dispute, provided such application or consequence of such application does not contravene the fundamental principles of Vietnam law.

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Several Noted Points on Law Competition of 2018

Vietnam Law on Competition has been adopted and will be effective on July 1st, 2019. The competition law of 2018 has changed in comparison with the Law on Competition 2004.  Theses changes are fundamental which enterprises should be aware of when entering into Vietnam through M&A activities. Competition lawyer should be consulted for update and development to avoid non-compliance.

Competition Lawyers in Vietnam

Competition Lawyers in Vietnam

Firstly, the Competition Law 2018 gave up regulations on the limit of acts of economic concentration. Accordingly, Article 30 prohibits an enterprise from conducting economic concentration that has the potential to cause significant adverse effects on competition in the Vietnamese market. Contrary to previous regulations, Competition Law 2004 prohibits economic concentration if the combined market share of enterprises participating in economic concentration accounted for more than 50% in the relevant market.

Secondly, the Competition Law 2018 under Article 112 provides clemency policy for enterprises violating competition regulations. Accordingly, enterprises which voluntarily declare to help the National Competition Committee detect, investigate and deal with prohibited competition restriction acts will be exempted or reduced penalties according to the leniency policy. The leniency policy is applicable to no more than three first enterprises applying for leniency to the National Competition Commission.

Thirdly, unlike the Competition Law 2004, the Competition Law 2018 specifies the maximum fine for violations of competition law.

For organization:

– Violating regulations on the acts of economic concentration: a maximum fine of 5% of the total turnover of the business on the relevant market.

– Violating regulations on unfair competition: a fine of up to VND 2 billion

– Violation of other regulations: up to 200 million VND.

For individual, the fine level is 50% of the organization’s level.

Fourth, on threshold of economic concentration.The Competition Law 2004 stipulated that for centrally-run enterprises with a market share of between 30% and 50% in the relevant market, the competition authority must notify the competition authority before conducting the economic concentration. At present, the Competition Law 2018 is not regulated specifically as above, but only the notification threshold of economic concentration is determined based on one of four criteria as following:

– Total assets on the Vietnamese market of enterprises participating in economic concentration;

-The total turnover in the Vietnamese market of enterprises participating in economic concentration;

– Transaction value of economic concentration;

– Market share in the relevant market of enterprises participating in economic concentration.

Finally, new regulation on the time limit for dealing with a breach of competition law. Previously, to solve and deal with cases of economic concentration violation, it is necessary to undertake a preliminary investigation and formal investigation. In particular, the preliminary investigation is 30 days; formal investigation is 60 days with unfair competition; 180 days with the agreement restriction competition, economic concentration. Competition Law 2018 no longer stipulates two phases of the above investigation, but only that the investigation period is 09 months for restricted competition; 90 days with economic concentration; 60 days with unfair competition cases.

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What are Requirement on Sending Notices in Arbitration Proceedings in Vietnam?

According to Article 12 of Vietnam Law on Commercial Arbitration, unless otherwise agreed by the parties or provided by the arbitration center’s rules of proceedings, the mode and order of sending notices in arbitral proceedings for dispute are specified as follows:

Each party’s written explanations, correspondence papers and other documents shall be sent to the arbitration center or arbitration council in sufficient copies so that every member of the arbitration council and the other party has one copy, and one copy is filed at the arbitration center;

Arbitration Lawyers in Vietnam

Notices and documents to be sent by the arbitration center or arbitration council to the parties shall be sent to the addresses or to their representatives at the correct addresses notified by the parties;

Notices and documents may be sent by the arbitration center or arbitration council directly, in registered or ordinary mails, by fax. telex, telegram, email, or other modes which acknowledge such sending;

Notices and documents sent by the arbitration center or arbitration council will be regarded as having been received on the date the parties or their representatives receive them or if such notices and documents have been sent to addresses or to their representatives at correct address notified by the parties;

The time limit for receiving notices and documents shall be counted from the date following the date such notices and documents are regarded as having been received. If the following date falls on a holiday or day off under regulations of the country or territory in which the notices and documents have been received. this time limit shall be counted from the subsequent first working day. If the last day of this time limit falls on a holiday or day off under regulations of such country or territory, the time of expiration is the end of the subsequent first working day.

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When Shall Copyright is Generated and Established?

According to Article 1 of Law Amending and Supplementing a Number of Articles of the Law on Intellectual Property in 2009, amending Article 3 of Law on Intellectual Property in 2005 (Vietnam IP Law), subject matters of copyright include literary, artistic and scientific works.

Copyright Consultant in Vietnam

Copyright means rights of organizations and individuals to works they have created or own.

According to Article 6 of Vietnam IP Law, copyright shall arise at the moment a work is created and fixed in a certain material form, irrespective of its content, quality, form, mode and language and irrespective of whether or not such work has been published or registered.

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When Shall Trademark Right is Generated and Established?

Mark is one of subject matters of industrial property rights under Vietnam Intellectual Property Law (Vietnam IP Law).  Mark means any signs used to distinguish goods or services of different organizations or individuals. 

Registered trademark protection in Vietnam

According to Article 6 of Vietnam IP Law, industrial property rights to mark shall be established on the basis of a decision of the competent State body to grant a protection title in accordance with the registration procedures stipulated in Vietnam IP Law or the recognition of international registration pursuant to an international treaty of which the Socialist Republic of Vietnam is a member.

Learn more about our ANT Lawyers Intellectual Property practice, its experience, and team members here. Please contact our Trademark attorneysin Vietnam for advice via email ant@antlawyers.vn or call us at +84 912 817 823.

Let ANT Lawyers help your business in Vietnam.

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When Shall Patent Right is Generated and Established?

Invention is one of subject matters of industrial property rights under Vietnam Intellectual Property Law 2005 (Vietnam IP Law), amended in 2009.   Invention means a technical solution in the form of a product or process which is intended to solve a problem by application of natural laws.  

According to Article 6 of Vietnam IP Law, industrial property rights to an invention or patent ownership shall be established on the basis of a decision of the competent State body to grant a protection title in accordance with the registration procedures stipulated in Vietnam IP Law or the recognition of international registration pursuant to an international treaty of which the Socialist Republic of Vietnam is a member.

Learn more about our ANT Lawyers Intellectual Property practice, its experience, and team members here. Please contact our Patent attorneys in Vietnam for advice via email ant@antlawyers.vn or call us at +84 912 817 823.

Let ANT Lawyers help your business in Vietnam.

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