Vietnam: Summary of administrative violations against regulations on competition and the penalties therefor

No.

Group of violation

Violation

Fine

1

Violations against regulations on anti-competitive agreements between enterprises engaging in the same relevant market

An agreement on direct or indirect fixing of prices of goods or services

A fine ranging from 01% to 10% of total turnover of an enterprise earned from the relevant market in the financial year preceding the year in which it committed the violation

An agreement on customer allocation, market division, division of sources of supply of goods or services

An agreement on limitation or control of the production or trading of goods or provision of services

An agreement on big-rigging whereby one or more parties of this agreement can submit a winning bid for supply of goods or services in a tender process

An agreement on hindering or preventing another enterprise from entering the marketing or developing its business

An agreement on forcing another enterprise that is not a party of the agreement out of the market

An agreement on restriction of technical/technological development or investment if this agreement reduces or may reduce the competition in the market significantly

An agreement on imposing or applying conditions for concluding contracts for trading of goods or provision of services to other enterprises or an agreement on forcing them to accept obligations which are not related to objects of contracts if this agreement reduces or may reduce the competition in the market significantly

An agreement on refusal to deal with enterprises that are not parties of the agreement if this agreement reduces or may reduce the competition in the market significantly

An agreement on restriction of consumption market, sources of supply of goods or services of other enterprises that are not parties of the agreement if this agreement reduces or may reduce the competition in the market significantly

Another agreement that reduces or may reduce the competition in the market

2

Violation against regulations on anti-competitive agreements entered into by enterprises doing business in different stages of the same chain of production, distribution or supply of a certain type of goods or services

Reaching an agreement on direct or indirect fixing of prices of goods or services if this agreement reduces or may reduce the competition in the market significantly

A fine ranging from 01% to 05% of total turnover of the enterprise that is a party of an anti-competitive agreement earned from the relevant market in the financial year preceding the year in which it committed the violation

Reaching an agreement on customer allocation, market division, division of sources of supply of goods or services if this agreement reduces or may reduce the competition in the market significantly

Reaching an agreement on limitation or control of the production or trading of goods or provision of services if this agreement reduces or may reduce the competition in the market significantly

Reaching agreement on big-rigging whereby one or more parties of this agreement can submit a winning bid for supply of goods or services in a tender process

Reaching an agreement on hindering or preventing another enterprise from entering the marketing or developing its business

Reaching an agreement on forcing another enterprise that is not a party of the agreement out of the market

Reaching an agreement on restriction of technical/technological development or investment if this agreement reduces or may reduce the competition in the market significantly

Reaching an agreement on imposing or applying conditions for concluding contracts for trading of goods or provision of services to other enterprises or an agreement on forcing them to accept obligations which are not related to objects of contracts if this agreement reduces or may reduce the competition in the market significantly

Reaching an agreement on refusal to deal with enterprises that are not parties of the agreement if this agreement reduces or may reduce the competition in the market significantly

Reaching an agreement on restriction of consumption market, sources of supply of goods or services of other enterprises that are not parties of the agreement if this agreement reduces or may reduce the competition in the market significantly

Reaching another agreement that reduces or may reduce the competition in the market

3

Abuse of dominant position

Selling goods or providing services below the costs that drives or probably drives competitors out of the market

A fine ranging from 01% to 10% of total turnover of the enterprise holding dominant market position or each enterprise in the group of enterprises holding dominant market position earned from the relevant market in the financial year preceding the year in which the violation is committed

Imposing unreasonable purchase or selling prices of goods or services or setting a minimum resale price maintenance that causes or may cause harm to customers

Restricting production or distribution of goods or provision of services, limiting markets or restricting technical/technological development that causes or may cause harm to customers

Applying dissimilar conditions to equivalent transactions with other trading parties that prevents or may prevent other enterprises from engaging in or expanding their market or force them out of the market

Applying conditions for concluding contracts for trading of goods or provision of services to other enterprises or requesting other enterprises or customers to accept obligations which are not related to objects of contracts, that prevents or may prevent other enterprises from engaging in or expanding their market or force them out of the market

Preventing other enterprises from engaging in or expanding their market

Performing other prohibited acts of abuse of dominant position as regulated by law

4

Abuse of monopoly position

Performing acts prescribed in Point b, c, d, dd or e Clause 1 Article 8 of Decree No. 75/2019/ND-CP of Vietnam’s Government

A fine ranging from 01% to 10% of total turnover of the enterprise holding the monopoly position earned from the relevant market in the financial year preceding the year in which the violation is committed

Imposing terms and conditions unfavorable to customers

Taking advantage of the monopoly position to unilaterally modify or invalidate the signed contract without legitimate reasons

Performing other prohibited acts of abuse of the monopoly position as regulated by law

5

Violations against regulations on economic concentrations

Banned merger of enterprises

A fine ranging from 01% to 05% of total turnover of the transferee enterprise and the transferor enterprise earned from the relevant market in the financial year preceding the year in which the violation is committed shall be imposed upon the transferee enterprise for carrying out the merger banned as regulated in Article 30 of the Competition Law of Vietnam

Banned consolidation of enterprises

A fine ranging from 01% to 05% of total turnover of consolidating enterprises earned from the relevant market in the financial year preceding the year in which the violation is committed shall be imposed upon the consolidated enterprise for carrying out the consolidation banned as regulated in Article 30 of the Competition Law

Banned acquisition of enterprises

A fine ranging from 01% to 05% of total turnover of the acquirer enterprise and the acquired enterprise earned from the relevant market in the financial year preceding the year in which the violation is committed shall be imposed upon the acquirer enterprise for its purchase of a part or all of paid-in capital and assets of another enterprise which is banned as regulated in Article 30 of the Competition Law

Banned joint venture between enterprises

A fine ranging from 01% to 05% of total turnover of each enterprise participating in the joint venture earned from the relevant market in the financial year preceding the year in which the violation is committed shall be imposed upon that enterprise for participating in the joint venture banned as regulated in Article 30 of the Competition Law

Failure to give notification of economic concentration

A fine ranging from 01% to 05% of total turnover of each enterprise participating in the economic concentration earned from the relevant market in the financial year preceding the year in which the violation is committed shall be imposed upon that enterprise for failure to give notification of such economic concentration as regulated in Article 33 of the Competition Law

Carrying out the economic concentration without obtaining a notice of preliminary valuation from the National Competition Committee as regulated in Clause 2 Article 36 of the Competition Law, except for the case prescribed in Clause 3 Article 36 of the Competition Law

A fine ranging from 0.5% to 01% of total turnover of each enterprise participating in the economic concentration earned from the relevant market in the financial year preceding the year in which the violation is committed

Carrying out the economic concentration before the National Competition Committee issues a decision as regulated in Article 41 of the Competition Law in case such economic concentration requires an official evaluation

Failing to satisfy or insufficiently satisfying the conditions specified in the decision on approval for economic concentration prescribed in Point b Clause 1 Article 41 of the Competition Law

A fine ranging from 01% to 03% of total turnover of each enterprise participating in the economic concentration earned from the relevant market in the financial year preceding the year in which the violation is committed

Carrying out the economic concentration in the case prescribed in Point c Clause 1 Article 41 of the Competition Law

6

Misappropriation of trade secrets

Accessing or obtaining trade secrets by taking actions against security measures adopted by the older of such trade secrets

VND 200,000,000 - VND 300,000,000

Disclosing or using trade secrets without the permission of the holder of such trade secrets

7

Use of coercion and undue influence in business

Threatening or coercing customers or business partners of an enterprise into refusing to enter into or suspending transactions with that enterprise

VND 100,000,000 - VND 200,000,000

Threatening or coercing customers or business partners of an enterprise into refusing to enter into or suspending transactions with that enterprise if the threatened or coerced customers or business partners are the largest ones of a competitor

VND 200,000,000 - VND 300,000,000

In case the violation involves two provinces or central-affiliated cities or more

A fine twice as much as the above-mentioned fine

8

Trade libel

Trade libel by indirectly spreading false information about an enterprise with the aim of causing harm to the prestige, financial status or business operations of that enterprise

VND 100,000,000 - VND 200,000,000

Trade libel by directly spreading false information about an enterprise with the aim of causing harm to the prestige, financial status or business operations of that enterprise

VND 200,000,000 - VND 300,000,000

In case the violation involves two provinces or central-affiliated cities or more

A fine twice as much as the above-mentioned fine

9

Disruption to business activities of other enterprises

Indirectly disturbing or disrupting business activities of another enterprise

VND 50,000,000 - VND 100,000,000

Directly disturbing or disrupting business activities of another enterprise

VND 100,000,000 - VND 150,000,000

In case the violation involves two provinces or central-affiliated cities or more

A fine twice as much as the above-mentioned fine

10

Illegally luring customers from other enterprises

The enterprise provides false or misleading information about its profiles or its products, services, promotion programs or trading conditions relating to its goods or services with the aim of attracting customers of other enterprises

VND 100,000,000 - VND 200,000,000

The enterprise compares its goods or services with those of the same types provided by other enterprises without giving persuasive evidence

In case the violation involves two provinces or central-affiliated cities or more

A fine twice as much as the above-mentioned fine

11

Selling goods or providing services below costs

Selling goods or providing services below their costs and thus driving or potentially driving other enterprises selling or providing the same type of goods or services out of the market

VND 800,000,000 - VND 1,000,000,000

In case the violation involves two provinces or central-affiliated cities or more

A fine twice as much as the above-mentioned fine