Law No. 23/2018/QH14 dated June 12, 2018 of the National Assembly on Competition

THE NATIONAL ASSEMBLY

Law No.  23/2018/QH14 dated June 12, 2018 of the National Assembly on Competition

Pursuant to the Constitution of the Socialist Republic of Vietnam;

The National Assembly promulgates the Competition Law.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of adjustment

This Law sets forth anti-competitive practices, economic concentration that causes or may cause anti-competitive effects on the market of Vietnam; unfair competition practices; competition legal proceedings; sanctions against violations of competition law; state management of competition.

Article 2. Subject of application

1. Business organizations and individuals (hereinafter referred to as enterprises), including enterprises that produce and provide public-utility products and services, enterprises that operate in state-monopolized sectors/domains, public sector entities and foreign enterprises that operate in Vietnam.

2. Industry associations operating in Vietnam.

3. Relevant domestic and foreign agencies, organizations and individuals.

Article 3. Interpretation of terms

For the purpose of the Law, these terms below shall be construed as follows:

1. “Industry association” includes business association and professional association.

2. “Anti-competitive practices” means enterprises’ practices that cause or may cause anti-competitive effects, including anti-competitive agreement, abuse of a dominant position on the market and abuse of monopoly power.

3. “Anti-competitive effects” means the effect of eliminating, reducing, distorting or deterring competition on the market.

4. “Anti-competitive agreement” means arrangements made by parties in any form, which causes or may cause anti-competitive effects.

5. “Abuse of a dominant position, abuse of monopoly position” means behavior of enterprises with dominant position, monopoly position which causes or may cause anti-competitive effects.

6. “Unfair competition practices” means competition acts performed by enterprises against the principles of good faith, honesty, business norms and standards, which cause or may cause damage to the legitimate rights and interests of other enterprises.

7. “Relevant market” means the market of those products and/or services that are regarded as interchangeable by reason of their characteristics, intended use and prices in a specific geographical area with homogeneous conditions of competition, which is considerably differentiated from neighboring geographic areas.

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