Long-Awaited Vietnam Competition Commission Begins to Take Shape

February 16, 2023

Long-Awaited Vietnam Competition Commission Begins to Take Shape

On February 10, 2023, the government of Vietnam issued Decree No. 03/2023/ND-CP regulating the functions, rights and duties, and organizational structure of the National Competition Commission (“Decree 03”). The National Competition Commission (official English name Vietnam Competition Commission or VCC) was first mentioned in the updated Law on Competition of 2018 and is meant to be the leading authority responsible for the state management of competition matters in Vietnam. However, nearly five years later, no penalty decisions for competition violations under the Law on Competition 2018 have been issued, due to a lack of regulations on the functions of the VCC. Thus, the issuance of Decree 03 is an important milestone and is expected to increase the authorities’ enforcement against competition-related violations in Vietnam.

The VCC is an agency under the Ministry of Industry and Trade (MOIT) and consolidates the previous Vietnam Competition Council and Vietnam Competition Authority. The VCC is mainly responsible for: (1) carrying out competition proceedings, (2) controlling economic concentration, (3) deciding on exemptions from prohibited anti-competitive agreements, (4) handling appeals of decisions on settlement of competition cases; (5) advising and assisting the MOIT in performing the state management of competition, protecting consumers’ interests, and managing multi-level marketing activities; and (6) other responsibilities as may be assigned by the MOIT.

For each case of alleged anti-competition, the chair of the VCC will establish a Council for Handling Anti-Competitive Case, which will dissolve itself upon the fulfillment of its responsibilities.

The VCC is made up of 15 members, including the chair and one or more vice chairs, and will also include the following departments:

Competition investigation agency;
Secretariat of Councils for Handling Anti-Competitive Cases;
Competition Supervision Board; and
Units perform the function of state management of competition, protection of consumers’ interests, and management of multi-level marketing activities.

Decree 03 will take effect on April 1, 2023, replacing Decree No. 07/2015/ND-CP on the functions, rights, duties, and organizational structure of the Competition Council and Decision No. 24/2015/QD-TTg of the Prime Minister promulgating the organizational and operational rules of the Competition Council.

It is worth noting that in order for the VCC to operate in practice, there must be a decision from the Prime Minister to appoint the chair of the VCC and further detailed regulations from the MOIT on the organization of the VCC, which are expected to be released in the near future.

Related Professionals

Tu Ngoc Trinh

Vietnam

+84 24 3772 5556

Email

RELATED INSIGHTS

December 18, 2024

The EU-Thailand Free Trade Agreement

The EU-Thailand Free Trade Agreement is drawing a lot of interest as the fourth round recently concluded in Bangkok. Despite negotiations starting in 2013, there was a ten-year pause before we saw the first round of negotiations end in September 2023. The initial plan was for four rounds of negotiations, with the free trade agreement (FTA) finalized in 2025. However, following the fourth round it is clear that the negotiations are still ongoing. Now, the question is: how much closer are the EU and Thailand to concluding their FTA? The EU initially submitted 13 chapter proposals for the FTA, followed by a further 12, and these became the springboard for the negotiations. Given the complexity of agreeing on an accord of this size, there will probably be additional proposals submitted in 2025. These chapters have seen sector-specific negotiation groups formed, and although it has been difficult to truly gauge the status, steady progress has been made in each. Arguably one of the biggest points of discussion pertains to the customs process for imports and exports. Both sides aim to align their practices in relation to rules of origin and custom rates, with preferential tariff treatments offered to goods originating from Thailand and the EU, as well as talks of eliminating or reducing relevant taxes. The desire for a faster customs clearance can be seen in EU proposals for clearance of goods on arrival. Although there has been progress in agreeing to a more simplified customs process, more work needs to be done before we hear news of the agreed-upon fees and charges, or confirmation of what goods would be allowed temporary admission. When we consider customs clearance, it is important to also examine what this FTA could mean for rightsholders. One piece of good news is that it appears

December 4, 2024

Thailand Legal Basics

Thailand Legal Basics, a valuable primer for foreign investors, explores all aspects of living and doing business in Thailand. Written by specialists at Tilleke & Gibbins in Bangkok, it is the only comprehensive English-language guide to the Thai legal system with a focus on the concerns of foreign business and investment.

September 23, 2024

Cambodia Launches Trial of Intellectual Property Rights Recordation System

The General Department of Customs and Excise (GDCE) in Cambodia’s Ministry of Economy and Finance launched a trial phase of its Intellectual Property Rights Recordation System (IPRRS) on September 1, 2024. The system compiles necessary information and documents related to intellectual property rights in the country, enabling customs authorities to swiftly access these documents and enhance their ability to identify and intercept potential parallel imports and infringing goods at the border. This will also better facilitate ex-officio actions by customs authorities. The system is currently referred to as being in a “trial phase” to support further amendments or updates to address any potential technical errors that may arise from public use. However, the IPRRS is already fully operational. Types of Recordation Currently, the IPRRS allows two types of recordation: Intellectual property recordation is available for trademarks, geographical indications, copyrights, and related rights that are protected in Cambodia. It allows IP owners, authorized representatives, and legal representatives to record information and documents relating to such rights, including information on possible or potential counterfeit goods, with the GDCE. Recordation will give customs authorities quicker access to the information and enable them to promptly take action against potential counterfeit or infringing goods. Exclusive distributorship recordation is meant to streamline the process that takes place after the Ministry of Commerce issues a notice of the recordation of exclusive rights. Under the current practice, after receiving a copy of a notice of the recordal of an exclusive distributorship issued by the Ministry of Commerce (MOC), the GDCE needs to enter the information into their system manually to enable them to promptly identify or stop potential parallel importation at the border. This reportedly causes delays in border officers’ access to the necessary information. Recordation through the IPRRS, on the other hand, allows local exclusive distributors

August 7, 2024

Landmark Myanmar Competition Commission Decision Targets Deceptive Branding

A recent case at the Myanmar Competition Commission has set a significant precedent in the country’s approach to unfair competition practices. The case, involving a Thai manufacturer of cement grout and tile adhesive products and a local Myanmar producer, highlighted the Commission’s willingness to address issues of deceptive marketing and unfair competition. Background The case centered around a Thai manufacturer who has been distributing their cement grout and tile adhesive products in Myanmar for many years through local distribution agents. The company had established a well-known brand and a strong reputation for quality in the Myanmar market. In recent years, the Thai company discovered that a local individual in Myanmar was manufacturing and selling similar products with packaging nearly identical to their own. The local producer was using the same mark device, color, and packaging design themes, and the products contained deceptive information. Legal Proceedings After an initial cease-and-desist letter failed to resolve the issue, a complaint was submitted to the Myanmar Competition Commission. The case was notable because the Commission typically does not address issues of copying designs, marks, colors, or packaging themes. However, the complaint emphasized that the local individual was misleading customers and competing unfairly by using deceptive information and copying distinctive designs and themes. Lawyers from Tilleke & Gibbins, representing the Thai manufacturer, provided extensive documentation proving their client’s long-standing presence in the Myanmar market and the local individual’s deceptive practices. The Commission’s Investigation Committee conducted a thorough investigation, including market surveys and hearings involving both parties. Commission’s Decision After nearly a year of deliberation, on July 4, 2024, the Decision-Making Committee of the Myanmar Competition Commission ruled in favor of the Thai manufacturer. The decision required the local individual to: Immediately cease the production and distribution of cement grout and tile adhesive products bearing

You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

Industries

Practices

February 16, 2023