Decree 116 on implementation of the Competition Law (1)

adminquantri - February 3, 2009
On September 15, 2005, the Vietnamese Government has issued Decree No. 116-2005-ND-CP (Decree 116) providing detailed regulations on implementation of a number of Articles of the Law on Competition.
To date, Vietnam Competition Law was promulgated by the National Assembly of Vietnam on December 3, 2004 and came into force on July 1st 2005. It imposes a number of restrictions on the market practices of businesses in the Vietnamese market. The Competition Law deals with two broad categories of competitive practices including practices in restraint of competition and unfair competitive practices. The Competition Law aslo includes provisions on competition legal proceedings and violation remedies.
Decree 116 provides detailed regulations on implementation of the Competition Law in respect of practices in restraint of competition only. Unfair competitive practices are not mentioned in this Decree. In connection with enforcement in the field of competition, Decree 116 only provides regulations regarding competition legal proceedings. Violation remedies should be provided in other legal document.
Decree 116 provides more details with respect to:
  • How to determine the relevant maket and market share in order to control activities in restraint of competition;
  • What constitutes the various types of agreement in restraint competition and the various practices in abuse of dominant market position or monopoly position; provisions on economic concentration;
  • Procedures for exemption from competition prohibitions; and
  • Competition complaints and competition legal proceeding including receiving competition complaints, competition proceedding fees, evidentiary, administrative preventive mesuares available during competition legal proceedings, competition decisions and appeal avenues.
Decree 116 is considered as a legal basis for implementation of Competition Law, however, in order for the Competition Law and Decree 116 to be effectively enforced, it is necessary to establish a Competition Commission (to consider applications for exemptions from the Competition Law and to investigate competitive practices) and a permanent Competition Council (to deal with competition case concerning practices in restraint of competition, after completion of investigation by the Competition Commission). It is still unknown when these two instruments will be established. At present, the only infrastructure for implimentation of the Competition Law is the Competition Administration Department under the Ministry of Trade.
A Special Feature on Decree 116 by D&N International will published in the near future on its website.