VIETNAM COMPETITION COMMISSION OFFICIALLY TAKES SHAPE

LEGAL UPDATE

On 10 February 2023, the Government issued Decree No. 3/2023/ND-CP (Decree 3) providing for the functions, rights and duties, and organisational structure of the Vietnam Competition Commission (VCC).

The VCC was officially introduced in the 2018 Law on Competition as the leading authority in charge of the state management of competition matters. However, it was not operational until the promulgation of Decree 3, which took nearly four years since the inception of the Competition Law on 1 July 2019. The establishment of the VCC under Decree 03 is expected to enhance the enforcement by the competition regulators in Vietnam.

Decree 3 will take effect on 1 April 2023.

In this update, we set out some remarkable points of Decree 3.

1. Role

According to Decree 3, the VCC, also known as "Ủy Ban Cạnh Tranh Quốc Gia” in Vietnamese, is an authority that falls under the management of the Ministry of Industry and Trade (MOIT). Once established, the VCC shall take over the role of the existing authorities, including the Vietnam Competition and Consumer Protection Authority and the Vietnam Competition Council. This means that these authorities’ functions will no longer be operational, and the VCC will be solely responsible for the enforcement of competition-related matters in Vietnam.

2. Function

Decree 3 outlines the following functions for the VCC:

• conduct competition proceedings;

• regulate economic concentration activities;

• handle requests for exemptions from prohibited anti-competitive agreements;

• fulfill tasks in relation to the state management of competition, protection of consumers' interests, and management of multi-level marketing activities; and

• undertake other responsibilities as assigned by MOIT.

3. Organisational Structure

According to Decree 3, the organisational structure of the VCC consists of 15 members, including one chairman, one or several vice chairmen, and other members. The VCC will comprise the following departments:

• A competition investigation agency;

• A secretariat of councils for handling anti-competitive cases; and

• A competition supervision board.

In addition, MOIT may establish other departments under the VCC to handle other matters in relation to the protection of consumers’ interests and multi-level marketing activities as required.

4. Conclusion

The establishment of the VCC will create a foundation for a regulatory authority responsible for managing competition-related matters. It is important to note that MOIT will appoint the VCC’s members and issue additional regulations on the organisation of the VCC after the implementation of Decree 3, which is expected to happen soon.

For more information, please contact:

Loan Pham / Associate

loan.pham@acsvlegal.com

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This legal update is not an advice and should not be treated as such.

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