Competition is the motivating factor behind the growth of enterprises and the economy as a whole. In Vietnam, the State recognizes and encourages the rights of businesses to free and fair competition. However, in addition to healthy and creative rivalry, there does exist unjust competition in the marketplace, such as: (i) agreements to prevent or restrain other enterprises from entering the market or developing their business; (ii)agreements to exclude from the market enterprises that are not parties to the agreement; and (iii) agreementsto restrain competition when the parties to the agreement have a combined market share of 30% or more in the relevant market (including: fixing prices of goods or services directly or indirectly; division of the consumption market, the supply of goods and the supply of services; limiting or controlling the quantity or volume of production, purchase and sale of goods and services; restriction of technical and technological development and restriction of investment; imposition on another enterprise of conditions for entering into a contract for the purchase and sale of goods or services; or forcing another enterprise to accept obligations that are not directly related to the subject matter of the contract). According to the provisions of Article 217 of the 2015 Penal Code (amended and supplemented in 2017), if enterprises commit one of the above acts, causing damage to others in the amount of 1 billion Vietnamese dong or more, or gain illicit profits in the amount of 500 million Vietnamese dong or more, they will be criminally responsible. Penalties may include a maximum of 5 years’ imprisonment for individuals or suspension of operations for up to 2 years for commercial legal entities.
With years of successful experience in business consultancy and resolution of competition cases, Le & Tran understands and can quickly assess the damages that businesses may suffer as a result of unfair competition tactics. We are confident in our ability to provide strategic advice and solutions to assist businesses in combating and protecting themselves and their future prospects. Our team of lawyers, with a creative and effective work ethic, are always ready to provide the highest quality legal services which aims to create an environment of healthy and fair competition so that your business can succeed.