Vietnam: The act of forcing customers to transact shall be fined up to VND 150,000,000

11:03, 25/07/2014

Recently, the Government of Vietnam issued Decree No. 71/2014/NĐ-CP detailing the Law on Competition on the imposition of penalties for violations against the law on competition.

Currently, enterprises are prohibited from coercing the customers and business partners of other enterprises not to do business with such enterprises.

According to the Law on Competition 2004 of Vietnam, coercion in business is an unfair competitive practice (unfair competitive practices means competitive practices by an enterprise during the business process which are contrary to general standards of business ethics and which cause or may cause damage to the interests of the State and/or to the legitimate rights and interests of other enterprises or of consumers).

canh tranh klhong lanh manh, nghi dinh 71/2014/NĐ-CP

According to Decree No. 71/2014/NĐ-CP of Vietnam’s Government, any enterprise that coerces the customers and business partners of other enterprises not to do business with such enterprises shall be fined from VND 50,000,000 to VND 100,000,000.

Moreover, any enterprise committing any violation prescribed above shall be fined from VND 100,000,000 to VND 150,000,000 when it:

- Coerces the biggest customers or business partners of the competitors;

- Commits a violation in more than one province.

In addition to the fine prescribed above, the exhibits and means to commit the violation and the profit from the violation of the enterprise committing any violation shall be confiscated.

View full text at Decree No. 71/2014/NĐ-CP of Vietnam’s Government effective from September 15, 2014.

Thu Ba

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