Chương 1 Luật cạnh tranh 2004: Những quy định chung

Chapter I

GENERAL PROVISIONS

Article 1. Scope of governance

This Law governs practices in restraint of competition, unfair competitive practices, the order and procedures for resolution of competition cases, and measures for dealing with breaches of the laws on competition.

Article 2. Applicable entities

This Law shall apply to:

1. Organizations and individuals conducting business (hereinafter together referred to as enterprises), including enterprises engaged in production or supply of public utility products or services, enterprises conducting business in State monopoly industries and sectors and overseas enterprises operating in Vietnam.

2. Industry associations operating in Vietnam.

Article 3. Interpretation of terms

In this Law, the following terms shall be construed as follows:

1. Relevant market consists of relevant product market and relevant geographical market.

Relevant product market means a market comprising goods or services which may be substituted for each other in terms of characteristics, use purpose and price.

Relevant geographical market means a specific geographical area in which goods or services may be substituted for each other with similar competitive conditions and which area is significantly different from neighbouring areas.

2. Industry associations consist of trade associations and professional associations.

3. Practices in restraint of competition means practices of enterprises which reduce, distort or hinder competition in the market, including practices being agreements in restraint of competition, abuse of dominant market position, abuse of monopoly position and economic concentration.

4. Unfair competitive practices means competitive practices by an enterprise during the business process which are contrary to general standards of business ethics and which cause or may cause damage to the interests of the State and/or to the legitimate rights and interests of other enterprises or of consumers.

5. Market share of an enterprise with respect to a certain type of goods or services means the percentage of turnover from sales of such enterprise over the total turnover of all enterprises conducting business in such type of goods or services in the relevant market or the percentage of turnover of inwards purchases of such enterprise over the total turnover of inwards purchases of all enterprises conducting business in such type of goods or services in the relevant market for a month, quarter or year.

6. Combined market share means the total market share in the relevant market of the enterprises participating in an agreement in restraint of competition or in an economic concentration.

7. Total prime cost of goods and services comprises:

(a) Prime cost of producing products and services; prime cost of purchasing goods;

(b) Expenses of circulating goods and services to consumers.

8. Competition cases means cases with an indication of a breach of this Law which are investigated by the competent State body and dealt with in accordance with the provisions of law.

9. Competition legal proceedings means activities of bodies, organizations and individuals in accordance with the order and procedures for resolving and/or dealing with competition cases in accordance with the provisions of this Law.

10. Business secret means information which satisfies all of the following conditions:

(a) It is not common knowledge;

(b) It is able to be applied in business and when used will create an advantage for the information holder over an entity which does not have or use such knowledge;

(c) It is protected by its owner by necessary means in order that such information will not be disclosed and will be difficult to access.

11. Multi-level selling of goods means a marketing method in order to conduct a retail sale of goods which satisfies the following conditions:

(a) Marketing in order to conduct a retail sale of goods is implemented via a network of participants comprising a number of different levels and branches;

(b) A participant markets goods directly to a consumer at the residence or working location of the consumer or at some other place which is not the regular retail sales location of the enterprise or participant;

(c) A participant in the network for multi-level selling of goods will receive commissions, bonuses or other economic benefits from the results of marketing sales of goods by himself or herself and by other persons below the participant in the network organized by such participant and approved by the enterprise engaged in multi- level selling of goods.

Article 4. Right to compete in business

1. All enterprises shall be entitled to compete freely within the framework of the law. The State shall protect the right to compete lawfully in business.

2. Competition must be undertaken on the principles of honesty; non- infringement of the interests of the State, the public interest, and the lawful rights and interests of enterprises and consumers; and compliance with the provisions of this Law.

Article 5. Application of this Law, other relevant laws and international treaties

1. Where there is any difference between the provisions of this Law and the provisions of another law with respect to a practice in restraint of competition or unfair competitive practice, the provisions of this Law shall apply.

2. Where an international treaty which the Socialist Republic of Vietnam has signed or acceded to contains provisions which are different from those in this Law, the provisions of such international treaty shall prevail.

Article 6. Practices of State administrative bodies which are prohibited

State administrative bodies shall not be permitted to perform the following acts in order to hinder competition in the market:

1. Force an enterprise, organization or individual to purchase or sell goods or services with an enterprise appointed by such body, except for goods and services belonging to State monopoly sectors or in cases of emergency as stipulated by law;

2. Discriminate between enterprises;

3. Force industry associations or enterprises to associate with each other aimed at excluding, restraining or hindering other enterprises from competing in the market;

4. Other practices which hinder the lawful business activities of enterprises.

Article 7. Responsibility for State administration of competition

1. The Government shall exercise uniform State administration of competition.

2. The Ministry of Trade shall be responsible before the Government for the exercise of State administration of competition.

3. Ministries, ministerial equivalent bodies and people's committees of provinces and cities under central authority shall, within the scope of their respective duties and powers, be responsible to co-ordinate with the Ministry of Trade in the exercise of State administration of competition.

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