02 primary penalties for administrative violations against regulations on competition in Vietnam: warning and fine

Specifically, according to Article 3 of the Decree No. 75/2019/NĐ-CP of Vietnam’s Government, the entity that commits an administrative violation against regulations on competition shall be liable to one of the following primary penalties:

- A warning; or

- A fine.

Depending on the nature and severity of each administrative violation, the violating entity may face one or some of the following additional penalties:

- The violating entity shall have its/his/her license, practicing certificate or operations suspended for a period of 06-12 months;

- The exhibits and instrumentalities used for committing the administrative violation shall be confiscated;

- Profits illegally obtained from the administrative violation shall be confiscated;

- The enterprise registration certificate or equivalent document shall be revoked.

Besides incurring the penalties mentioned above, the entity committing a violation against regulations on competition may be liable to one or some of the remedial measures mentioned below:

- Enforced public correction of information;

- Enforced removal of violating elements on the goods, goods labels, means of trading or articles;

- Enforced restructuring of the enterprise that has abused its dominant position or monopoly position;

- Enforced removal of illegal terms and conditions from business contract, agreement or transaction;

- Enforced full/partial division or transfer of partial or entire paid-in capital or assets of the enterprise that is established from the economic concentration;

- Enforced operation under a competent authority’s control over prices of goods/services or other transaction terms included in contracts concluded by transferee/acquirer enterprises or enterprises that are established from economic concentration;

- Enforced provision of sufficient information/documents;

- Enforced restoration of conditions for technical/technological development which has been obstructed by the enterprise;

- Enforced removal of terms and conditions unfavorable to customers;

- Enforced restoration of terms and conditions of contracts or contracts which have been changed or invalidated without legitimate reasons;

- Enforced restoration of original state.

Note: The time-limit for implementing the remedial measure of enforced operation under a competent authority’s control must be specified in the penalty imposition decision.

If a state agency performs any prohibited acts as prescribed in Clause 1 Article 8 of the Competition Law, it shall be requested by the National Competition Committee to stop performing such prohibited acts and repair damage caused by its performance of such acts. The requested state agency shall immediately stop performing the violations, implement remedial measures and make compensation for damage as regulated by laws.

View more details at the Decree No. 75/2019/NĐ-CP of Vietnam’s Government, effective from December 01, 2019.

Thuy Tram

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