Vietnam (July 1, 2005)

Score = 20

Governed by: Competition Law of 4 November 2004 (came into force 1 July 2005) (herein referred to as "Competition Law").

Category	Subcategory	Score	Comment
Scope	Extraterritoriality	0	The Competition Law regulates unhealthy competitive practices and practices in restraint of competition by all businesses in Vietnam, including 'overseas enterprises operating in Vietnam.'
Remedies	Fines	1	The Competition Commission may impose fines.
	Prison Sentences	0
	Divestitures	1	Divestitures can be requires for unlawful economic mergers.
Private Enforcement	3rd Party Initiation	1	Any party that believes its legal rights and interests have been infringed due to a breach of the Competition Law can submit a complaint to the Competition Commission.
	Remedies Available to 3rd Parties	1	Compensation may have to be paid to thsoe who have suffered loss.
	3rd Party Rights in Proceedings	0
Merger Notification	Voluntary	0
	Mandatory	3	If the parties to a merger have a combined market share of between 30% and 50% of the relevant market, they must notify the Competition Commission 30 days before the proposed merger.
	Pre-merger	2	If the parties to a merger have a combined market share of between 30% and 50% of the relevant market, they must notify the Competition Commission 30 days before the proposed merger.
	Post-merger	0
Merger Assessment	Dominance	1	Mergers resulting in greater than 50% market share are prohibited
	Restriction of Competition	1	Restriction of competition through a merger is defined by the Competition Law as a practice that reduces, distorts, or hinders competition in the market.
	Public Interest (Pro D)	0
	Public Interest (Pro Authority)	0
	Other	1	The Competition Commission may grant a business failure exemption if one or more of the parties to the merger is at risk of being dissolved or declared bankrupt.
	Efficiency	1	The Competition Commission may grant an exemption if the merger has the effect of contributing to socioeconomic development, technical progress or the increase of exports.
Dominance	Limits Access	0
	Abusive Acts	1	An enterprise in a monopoly market position may not impose disadvantageous conditions on customers or abuse its monopoly position to unilaterally change or rescind a signed contract without a legitimate reason.
	Price Setting	1	The Competition Law prohibits fixed unreasonable selling or purchasing prices. Moreover, it prohibits predatory pricing as well.
	Discriminatory Pricing	0
	Resale Price Maintenance	1	The Competition Law prohibits a dominant firm from fixing minimum reselling prices.
	Obstacles to Entry	1	The Competition Law prohibits a single enterprise or a group of enterprises from preventing other enterprises from entering the market.
	Efficiency Defense	0
Restrictive Trade Practices	Price Fixing	1	Enterprises that hold a combined market share of 30 percent or more of the relevant market are prohibited from entering into price fixing agreements.
	Tying	1	The Competition Law prohibits a single enterprise or a group of enterprises from bundling unrelated obligations into a contract.
	Market Division	0
	Output Restraint	1	Enterprises that hold a combined market share of 30 percent or more of the relevant market are prohibited from entering into output restraint agreements.
	Market Sharing	1	Enterprises that hold a combined market share of 30 percent or more of the relevant market are prohibited from entering into market sharing agreements.
	Eliminating Competitors	1	Boycotts are considered agreements in restraint of competition and are strictly prohibited.
	Collusive Tendering/Bid-Rigging	1	Tender collusions are considered agreements in restraint of competition and are strictly prohibited.
	Supply Refusal	0
	Efficiency Defense	1	The Competition Commission may grant an exemption for an agreement in restraint of competition if the agreement increases efficiency.