On 02 April 2015, the Vietnam Competition Authority (VCA) published the annual report of 2014 on its website (the Report), drawing a panorama of the Vietnamese competition activities during the year.
From a legal perspective, the Report produced an overview on the subject matters of three new legal instruments enacted in 2014 governing competition activities e.g. Decree No. 42/2014/ND-CP and Circular 24/2014/TT-BCT on administration of the multi-level selling of goods; and Decree 71/2014/ND-CP on penalties for breaches in competition sector. Furthermore, in 2014 there were two international treaties containing competition regulations executed including the Vietnam – Customs Union of Russia, Belarus, and Kazakhstan Free Trade Agreement, and Korea – Vietnam Free Trade Agreement.
Regarding the practical context of competition, the Report furnished an analysis of the enforcement of competition laws and policies particularly in 2014 and generally in the period from 2006 and 2014. Upon the comparison between 2014 and the whole period, it is clearly stated that there is a downturn in the number of activities that breach the laws on competition pertaining to two sectors; restraint of competition, and activities of unfair competition that have been investigated and had a penalty imposed. This data could be considered as a promising sign of the development of a fair and competitive business environment in Vietnam.
With regard to the global factors e.g. the establishment of ASEAN Economic Community, and the execution of a number of bilateral and multilateral agreements together with domestic factors i.e. the re-structuring of the Vietnamese economy, the competition between the entities is forecasted to intensify. The breach of competition is foreseen to be conducted in more sophisticated methods. Additionally, the economic concentration of transactions shall increase in number.
Below is the link to the Report on VCA’s website: