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 Prohibited Acts in Marine Operations in Vietnam?

According to Article 12 of Vietnam Maritime Law, the acts prohibited in marine operations in Vietnam are grouped in activities that negatively impact national security, people, traffic, environment, in particular:

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Harm or pose threatened harms to national sovereignty and security.

Carry people, goods, baggage, weapons, radioactive substances, hazardous discarded substances and narcotics in contravention of laws.

Intentionally create obstacles which can pose dangers or obstructions to marine traffic.

Use and operate ships which have not been registered or inspected or exceed the validity duration of registration and inspection; use counterfeit registration and inspection.

Refuse to participate in marine search and rescue activities if practical conditions permit.
Cause environmental pollution.

Infringe upon life, health, honor and dignity of persons aboard ships; embezzle and intentionally damage or ruin property aboard ships; take flight after causing any shipwreck.

Cause the public disorder, impede or react against implementation of duties of law enforcers on board ships and at seaports.

Destroy, damage, disassemble or steal components, parts, raw materials, building materials and equipment of marine construction works.

Damage, destroy and intentionally move or reduce the efficacy of marine signaling systems.

Explode bombs or other explosive materials within the boundaries of a seaport, port water area or navigational channel without authorization granted by competent authorities.

Illegally build and operate seaports and other structures within the planned boundaries of approved seaports, navigational channels and within the protective enclosure of marine structures.

Develop construction projects which may reduce or eliminate effects of marine structures.

Commit abuse of title, position and authority to contravene regulations on port authority; abet and screen persons who commit violations against maritime laws from any punitive measures.

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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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What Type of Works Are Protected by Copyright?

Copyright means rights of an organization or individual to works which such organization or individual created or owns. Copyright shall arise automatically 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 registed.

Copyright Consultant in Vietnam

According to Article 14 of Vietnam Intellectual Property Law (Vietnam IP Law), literary, artistic and scientific works which are protected by copyright comprise:

Literary works, scientific works, textbooks, teaching courses and other works expressed in written language or other characters;

Lectures, addresses and other speeches;

Press works;

Musical works;

Stage works;

Cinematographic works and works created by a process analogous to cinematography (cinematographic works);

Plastic art works and applied art works;

Photographic works;

Architectural works;

Sketches, plans, maps and drawings related to topography or scientific works;

Folklore and folk art works;

Computer programs and data collections.

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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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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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ANT Lawyers Sharing on Contract Negotiations at EuroCham

A business workshop has been scheduled on Jul 18th, 2018 at EuroCham Vietnam on understanding and negotiating commercial contracts by Thomas Giglione, an ADR, mediation and conflict management training expert at ANT Lawyers.

Conflict management training services in Vietnam

The objective of the training is to help commercial personnel of the organizations to be aware of basis to understand commercial contracts and contractual terms in English, an essential skills in doing international business.

The areas will be discussed include:

·         Basic Contract Negotiation

·         Pre-contractual Documents

·         Basic Commercial Contract and Vocabulary

Many employee of an organizations could speak and write daily English well but technical English required for understanding and negotiating basic commercial contracts could be learned and improved in this kind of training events, for in-house lawyers, legal officers, translators, HR personnel, supervisors, team leaders, company negotiators.

ADR, mediation and conflict management training are part of efforts which ANT Lawyers, a law firm in Vietnam continue to support and promote.

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What are Regulations on Collection and Use of Personal Information Under Cyber Information Law?

According to Article 17, Law on Cyber Information Security 2015, the collection and use of personal information are regulated as following:

Cyber information law firm in Vietnam

1. Organizations and individuals that process personal information shall:

a/ Collect personal information only after obtaining the consent of its owners regarding the scope and purpose of collection and use of such information;

b/ Use the collected personal information for purposes other than the initial one only after obtaining the consent of its owners;

c/ Refrain from providing, sharing or spreading to a third party personal information they have collected, accessed or controlled, unless they obtain the consent of the owners of such personal information or at the request of competent state agencies.

2. State agencies shall secure and store personal information they have collected.

3. Owners of personal information may request personal information-processing organizations and individuals to provide their personal information collected and stored by the latter.

Our cyber security lawyers always follow development of laws in Vietnam to provide the client with update. Please contact ANT Lawyers for service inquiries.

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What is Venue for Dispute Settlement by Arbitration in Vietnam?

According to Article 11 of Vietnam Law on Commercial Arbitration, the venue for dispute settlement byarbitration in Vietnam is as agreed by parties or decided by arbitration council.  In particular:

 Arbitration Lawyers in Vietnam

The parties may reach agreement on venues for dispute settlement. If no agreement is made, the arbitration council shall decide on such venue. A venue for dispute settlement may be within or outside the Vietnamese territory.

Unless otherwise agreed by the parties, the arbitration council may hold a meeting at a venue regarded as appropriate for its members to exchange opinions, for taking witnesses’ statements, consulting experts or for assessing goods, assets or other documents.

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What are Languages in Arbitration Proceedings in Vietnam?

According to Article 10 of Vietnam Law on Commercial Arbitration, language used in arbitration proceedings resolving dispute is Vietnamese if both parties are Vietnamese or foreign language as agreed by parties if one of the parties is foreign owned enterprise.  In particular:

Arbitration Lawyers in Vietnam

For disputes involving no foreign element, the language to be used in arbitral proceedings is Vietnamese, except disputes to which at least one party is a foreign-invested enterprise. When a disputing party cannot use Vietnamese, it may use an interpreter.

For disputes involving foreign elements or disputes to which at least one party is a foreign-invested enterprise, the parties shall reach agreement on the language to be used in arbitral proceedings. If they have no such agreement, the arbitration council shall decide on the language to be used in arbitral proceedings.

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What Documents Required to File Petition by Arbitration in Vietnam?

According to Article 30 of Vietnam Laws on Commercial Arbitration, petitions and enclosed documents for initiating dispute by arbitration in Vietnam will be submitted as following instructions:

Arbitral Award Enforcement Law Firm in Vietnam

When a dispute is settled at an arbitration center, the plaintiff shall file a petition at the arbitration center as agreed. When a dispute is settled by ad hoc arbitration, the plaintiff shall make a petition and send it to the defendant.

The petition contains the following details:

1.Date of its making;

2.Names and addresses of the parties; names and addresses of witnesses, if any;

3.Summary of the circumstances of the dispute:

4.Grounds and evidence for initiating the lawsuit, if any:

5.Specific requirements of the plaintiff and the value of the dispute:

6.Name and address of the person whom the plaintiff selects as arbitrator or requests to be designated as arbitrator.

Enclosed with the petition shall be the arbitration agreement and the originals or copies of relevant documents.

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Which Judgement Enforcement Agencies that Enforce Arbitral Awards or Decisions of Arbitration Councils on the Application of Interim Urgent Measures?

Under Article 8 of Vietnam Law on Commercial Arbitration, judgement enforcement agencies for enforcement of arbitral awards or decisions of arbitration councils on the application of interim urgent measures as regulated as following:

Arbitral Award Enforcement Law Firm in Vietnam

Competent civil judgment enforcement agencies to enforce arbitral awards are civil judgment enforcement agencies of provinces or centrally run cities in which arbitration councils issue the awards.

Competent civil judgment enforcement agencies to enforce decisions of arbitration councils on the application of interim urgent measures are civil judgment enforcement agencies of provinces or centrally run cities in which the interim urgent measures need to be applied.

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What are Principles of Dispute Settlement in Arbitration?

According to Article 4 of Vietnam Law on Commercial Arbitration, the following principles must be adhered to during dispute settlement in arbitration:

Arbitrators must respect the parties’ agreement if such agreement neither breaches prohibitions nor contravenes social ethics.

Arbitration Lawyers in Vietnam

Arbitrators must be independent, objective and impartial and shall observe law.

Disputing parties are equal in their rights and obligations. The arbitration council shall create conditions for disputing parties to exercise their rights and fulfill their obligations.

Dispute settlement by arbitration shall be conducted in private, unless otherwise agreed by the parties.

The arbitral awards are final.

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When Arbitration Could Settle a Dispute in Vietnam?

When Arbitration Could Settle a Dispute in Vietnam?

Under the Law on Commercial Arbitration effective Jan 1^st, 2011, and other guidance, in principle, arbitration could only be used in disputes among parties which arise from commercial activities, disputes among parties at least one of whom conducts commercial activities, and other disputes among parties which are stipulated by law to be settled by arbitration in Vietnam. Lawyer should be consulted for arbitration from drafting arbitration agreement to resolving the arisen dispute.

Arbitration Lawyers in Vietnam

Arbitral tribunals are entitled to resolve the disputes mentioned above if the concerned parties have a valid arbitration agreement agreed, before or after the dispute arise.

When the court is requested to resolve one of the disputes of the above types which a valid arbitration agreement exists, the court shall examine documents enclosed with the petition to determine and if the court finds that the dispute is under an arbitration agreement and such arbitration agreement is valid the court shall issue a decision to terminate the adjudication, return the petition and documents.

The dispute shall be handled by the court though it is under an arbitration agreement, unless otherwise agreed by the parties concerned or prescribed by law: the court issues a decision to annul the arbitral award or the decision made by the arbitral tribunal; or there is a decision to suspend the arbitral tribunal or arbitration center from resolving disputes; or the arbitration agreement is not viable.

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