According to Cao Xuan Hien, an official from the Competition Administration Department, the Competition Law, which comprises of six chapters and 123 articles, aims to control competition by creating a fair competitive environment and keeping a check on unfair competition. The Competition Law also regulates procedures for settling violations of fair competition. The law applies to a range of business organisations and enterprises, including enterprises producing and supplying products and those providing public-utility services; enterprises operating under State-monopolised sectors and domains; and foreign enterprises operating in Viet Nam. It also covers professional associations operating in Viet Nam.

Under the Competition Law, all acts of unfair competition are prohibited. Hien said acts of unfair competition include the dissemination of misleading information; infringement upon business secrets; constraint on business; discrediting other enterprises; disturbing competitors’ business activities; advertising for the purposes of unfair competition; sale promotion for the purpose of unfair competition; discrimination by association; and illicit multi-level sales.

Sanctions for offenders include monetary fines as well as additional sanctions and consequence remedy measures.

Businesses found to be publishing misleading information, infringing on business secrets, constraining business, and discrediting and disturbing the business activities of other enterprises, may be subjected to fines of between VND5-20 million. Advertising for the purpose of unfair competition and discrimination by association may be subjected to fines of between VND15-50 million. Illicit multi-level sales may be subjected to fines of between VND50-100 million. Senior planning officer from Japan’s Fair Trade Commission, Shinji Omoto, said a business consolidation by Japan Airlines and Japan Airsystem Company through the establishment a holding company in 2002, was found by the commission to potentially cause price hikes resulting from a decrease in the number of airlines.

Measures taken to resolve the concerns included the return of partial takeoff-and- landing slots, access to airport facilities by new airlines and consignment of business activities such as aircraft maintenance services, a 10 per cent cut in normal fares, the freezing of fares for three years and the widening of the coverage of discount fares.

"There can be no growth without economic reform. No economic growth without competition," said Omoto.

The seminar, which was jointly held by the Competition Administration Department and Japan International Co-operation Agency, is part of a programme on co-operation on the development of enforcement measures for competition law in Viet Nam.

Source: Vietnam News 16/06/2006