Handling Violations of Competition Laws in Vietnam

How Competition Lawyers in Vietnam Safeguard Fair Business Practices for Foreign Clients

The surge in popularity of foreign brands within the Vietnamese market, coupled with Vietnam’s integration into the global economy, has ushered in a new era of opportunities for foreign investments through the establishment of companies in Vietnam.

While this economic openness offers immense potential, ensuring fair competition and protecting consumer interests remain paramount. Vietnam’s state authorities are tasked with upholding the fairness of the business environment, and this includes stringent enforcement of competition laws.

In practice, violations related to competition, often entwined with intellectual property rights violations in Vietnam, can significantly impact businesses within the same sector. These violations encompass breaches of business secrets and prohibited advertising activities such as direct comparisons with competitors and the dissemination of falsified or misleading information to consumers.

Acts of violation of competition under Vietnam laws are defined in Article 1 of Decree 71/2014 / ND-CP, including: violations of regulations on control of acts of restraint of competition; acts of violating regulations on acts of unfair competition; violations of other provisions of law on competition. According to the provisions of law, the above acts shall be subject to the forms of punishment and fine. The most common and most powerful impact on businesses and consumers are the violation of unfair competition.

In Vietnam,there are a number of instances where unfair competition acts are associated with intellectual property rights violations, which have a significant impact on business activities of enterprises in the same field; violation of business secrets; activities of advertising that are prohibited i.e. make direct comparison against competitor, provide falsified or confused information to consumers…

If committed acts of unfair competition, the violator will be subject to fine level from VND 10,000,000 to VND 140,000,000. At the same time, additional measures and remedies will be applied, depending on the seriousness of the breach, such as the revocation of the enterprise registration certificate; deprivation of the right to use licenses or practice certificates; confiscation of material evidences and means used to commit the violation, including the confiscation of profits earned from the commission of the violation; to restructure the enterprise, rectify to the public…

From the management of state authority, the detection and handling of unfair competition acts create conditions for enterprises to have equal opportunities in the market economy. From the enterprise’s perspective, it is important to continuously review its business activities in Vietnam to ensure compliance to competition law by its lawyers.

The Role of Competition Lawyers in Vietnam

Competition lawyers in Vietnam play a pivotal role in assisting foreign clients in navigating the intricacies of Vietnam’s business landscape while ensuring adherence to competition laws. Here’s how they actively safeguard fair business practices:

Legal Compliance: Competition lawyers in Vietnam help foreign clients ensure that their business operations in Vietnam align with the country’s competition laws. They provide expert guidance on compliance requirements, minimizing the risk of inadvertent violations.

Dispute Resolution: In the event of alleged competition law violations, competition lawyers in Vietnam vigorously represent foreign clients, protecting their rights and interests throughout legal proceedings.

Risk Mitigation: These legal experts assess potential risks and formulate strategies to mitigate them effectively. This proactive approach safeguards the reputation and investments of foreign clients.

Intellectual Property Protection: Given the frequent intersection of unfair competition and intellectual property rights violations, competition lawyers in Vietnam offer counsel on safeguarding intellectual assets, a vital aspect of fair competition.

Regulatory Navigation: Competition lawyers in Vietnam assist foreign clients in navigating the intricate web of competition regulations. They ensure that clients comprehend their obligations and rights, thereby preventing inadvertent breaches.

Equal Opportunity Advocates: From the perspective of state authority management, competition lawyers in Vietnam aid in the detection and handling of unfair competition acts. This contributes to creating conditions where enterprises have equal opportunities in the market economy, fostering a level playing field.

Continuous Compliance: Importantly, competition lawyers in Vietnam encourage enterprises to proactively review their business activities in Vietnam continually. This ensures ongoing compliance with competition laws and minimizes the risk of violations.

Competition lawyers in Vietnam serve as indispensable allies for foreign clients seeking to thrive in the Vietnamese market while upholding fair business practices. They actively contribute to maintaining a competitive landscape where equal opportunities are afforded to all enterprises. For foreign clients, engaging experienced competition lawyers is not only a matter of legal compliance but also a strategic move to protect investments, uphold ethical business standards, and achieve long-term success in Vietnam’s dynamic business environment. With competition lawyers by their side, foreign clients can confidently navigate the complex terrain of competition laws, enabling them to focus on growth and innovation in this burgeoning market.

About ANT Lawyers, a law firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.