Maximum fines for administrative violations on competition in Vietnam

According to the Decree No. 75/2019/NĐ-CP of Vietnam’s Government, administrative violations against regulations of the competition law include:

- Violations against regulations on anti-competitive agreements;

- Violations against regulations on abuse of dominant position or monopoly position;

- Violations against regulations on economic concentrations;

- Violations against regulations on unfair competition;

- Violations against other regulations on competition.

According to Article 4 of the Decree No. 75/2019/NĐ-CP of Vietnam’s Government, fines are specified as follows:

- The maximum fine imposed for a violation against regulations on anti-competitive agreements or abuse of dominant position or monopoly position shall be 10% of total turnover of the violating enterprise earned from the relevant market in the financial year preceding the year in which it committed the violation but shall not be lower than the minimum fine imposed upon the violating entity prescribed in the Criminal Code of Vietnam.

- The maximum fine imposed for a violation against regulations on economic concentration shall be 05% of total turnover of the violating enterprise earned from the relevant market in the financial year preceding the year in which it committed the violation.

Regarding the above-mentioned cases:

+ If total turnover of the violating enterprise earned from the relevant market in the financial year preceding the year in which it committed the violation is zero as determined, it shall be liable to a fine ranging from VND 100,000,000 to VND 200,000,000.

+ Total turnover earned from the relevant market is the sum of turnovers of the violating enterprise earned from all markets related to its violation in the following circumstances:

• The enterprises engaging in the economic concentration are the ones engaging in the chain of production, distribution or supply of a certain type of goods or services or the business lines of enterprises engaging in the economic concentration are inputs or support those of each other;

• Enterprises entering into a prohibited anti-competitive agreement are doing business in different stages of the same chain of production, distribution or supply of a certain type of goods or services.

- The maximum fine imposed for a violation against regulations on unfair competition is VND 2,000,000,000.

- The maximum fine imposed for a violation against other regulations on competition prescribed in this Decree is VND 200,000,000.

Note:

- The maximum fines prescribed in Chapter II of this Decree are imposed for violations committed by organizations. The maximum fine imposed upon an individual shall be equal to a half of that imposed upon an organization for committing the same administrative violation against regulations on competition.

- The specific fine imposed for an administrative violation against regulations on competition is the average level of the fine bracket for that violation.

+ If there are mitigating circumstances, the imposed fine may be lowered but shall not be lower than the minimum level of the fine bracket. 

+ If there are aggravating circumstances, the imposed fine may be increased but shall not exceed the maximum level of the fine bracket.

For every mitigating or aggravating circumstance, the fine which is determined shall be lowered or increased but such adjustment shall not exceed 15% of the average level of the fine bracket.

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

Thuy Tram

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE