Prohibited unfair competition practices in Vietnam

1. What is unfair competition practices?

Clause 6, Article 3 of the Competition Law 2018, unfair competition practices means competition acts performed by enterprises against the principles of good faith, honesty, business norms and standards, which cause or may cause damage to the legitimate rights and interests of other enterprises.

Prohibited unfair competition practices in Vietnam (Internet image)

2. Prohibited unfair competition practices in Vietnam

According to Article 45 of the Competition Law 2018, prohibited acts of unfair competition include:

- Trade secret infringement in the following forms:

+ Assessing and acquiring trade secrets by going against security measures of the owner of such trade secrets;

+ Disclosing or using trade secrets without consent of the owner.

- Forcing customers or business partners of other enterprises through threatening or coercion so that they do not enter in transaction or stop transaction with such enterprises.

- Discrediting competitors through directly or indirectly providing untruthful information about such competitors which negatively impacts their goodwill, financial status or business operation.

- Disrupting competitors’ business through directly or indirectly interrupting or disrupting their legitimate business operation.

- Illegally luring customers through:

+ Providing false or misleading information to customers about the enterprise or products, services, sale promotion programs, transaction conditions related to the products or services provided by the enterprise to attract customers of competitors;

+ Comparing products, services of the enterprise with those of the same kinds of competitors without evidence to prove the comparison.

- Sale of goods and services below cost that drives or probably drives competitors out of the market.

- Other prohibited unfair competition practices prescribed in other laws.

3. Competition investigation time limit in Vietnam

Article 81 of the Competition Law 2018 stipulates the competition investigation time limit as follows:

- The time limit for investigation of an anti-competitive case is 9 months from the date of investigation decision; in case of complicated case, it may be extended once but not exceeding 3 months.

- The time limit for investigation of a case in which a violation of economic concentration is found is 90 days from the date of investigation decision; in case of complicated case, it may be extended once but not exceeding 60 days.

- The time limit for investigation of an unfair competition case is 60 days from the date of investigation decision; in case of complicated case, it may be extended once but not exceeding 45 days.

- The extension of the investigation time limit must be notified to investigated party and concerned parties within 7 working days before the expiry date of the investigation.

4. Settlement of an unfair competition case in Vietnam

Article 90 of the Competition Law 2018 stipulates the settlement of an unfair competition case as follows:

- Within 15 days from receipt of the competition case dossier, investigation report and investigation conclusions, the President of the National Competition Commission shall issue a decision to:

+ Settle the unfair competition case;

+ Request Competition Investigation Agency to carry out further investigation if the evidence collected is not sufficient to determine violations against competition regulations. The time limit for further investigation is 30 days from the date of decision; or

+ Suspend the settlement of the unfair competition case.

- Time limit for settlement of an unfair competition case in case of further investigation is 10 days from the date on which the dossier, investigation report and investigation conclusions are received.

Nhu Mai

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