Fines imposed on violations of competition law in Vietnam

 Fines imposed on violations of competition law in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Fines imposed on violations of competition law in Vietnam

Fines imposed on violations of competition law according to Article 111 of the Competition Law 2018 are as follows:

- The maximum fine for violations of regulations on anti-competitive agreements, abuse of the dominant position on the market, abuse of the monopoly position shall be equal to 10% of the total turnover of violating enterprises on the relevant market in the fiscal year preceding the year of violation, but not less than the minimum fine imposed on violations prescribed by the Penal Code.

- The maximum fine for violations of economic concentration regulations shall be 5% of the total turnover of violating enterprises on the relevant market in the fiscal year preceding the year of violation.

- The maximum fine for violations of regulations on unfair competition shall be VND 2 billion.

- The maximum fine for other violations of the Competition Law 2018 shall be VND 200 million.

- The maximum fines prescribed in Clauses 1, 2, 3 and 4 of Article 111 of the Competition Law 2018 shall apply to violations committed by organizations; a violation of regulations on competition law committed by an individual shall be subject to a half of fine that imposed on an organization committing the same violation.

2. Leniency policy when handling violations of competition law in Vietnam

Leniency policy when handling violations of competition law according to Article 112 of the Competition Law 2018 is as follows:

- Enterprises that voluntarily inform to help the National Competition Commission detect, investigate and handle anti-competitive agreements prohibited prescribed in Article 12 of the Competition Law 2018 might receive full or partial immunity from fines under the leniency policy.

- The President of the National Competition Commission shall decide the granting of full or partial immunity from fines in accordance with the leniency policy.

- The full or partial immunity from fines prescribed in Clause 1 of Article 112 of the Competition Law 2018 shall be granted if the enterprise meets the following conditions:

+ It has engaged in the anti-competitive agreement as a party as prescribed in Article 11 of the Competition Law 2018;

+ It voluntarily gives notice of the violation before competent bodies make an investigation decision;

+ It honestly provides all information/evidence that it has on the violation, which is of great help for the National Competition Commission to detect, investigate and handle the violation;

+ Fully cooperate with competent bodies during the investigation and handling of the violation.

- Regulations in Clause 1 of Article 112 of the Competition Law 2018 shall not apply to enterprises that play the role of forcing or arranging other enterprises to participate in the agreement.

- This leniency policy is applicable to no more than the first 3 enterprises which apply for leniency to the National Competition Commission and meet all the conditions specified in Clause 3 of Article 112 of the Competition Law 2018.

- Criteria for determining the enterprises entitled to leniency:

+ Order of the notification;

+ Time of notification submission;

+ Fidelity and values of the provided information/evidence.

- The full or partial immunity from fines shall be granted as follows:

+ The first enterprise applying for leniency and meeting the conditions specified in Clause 3 of Article 112 of the Competition Law 2018 might receive full immunity from fines;

+ The second and third enterprises applying for leniency and meeting the conditions specified in Clause 3 of Article 112 of the Competition Law 2018 might receive 60% and 40% of immunity from fines respectively;

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE