Draft Decree Aims To Enhance Competition Law Enforcement In Vietnam

In September 2019, the government of Vietnam issued Decree No. 75/2019/ND-CP on Administrative Sanctions in the Field of Competition (Decree 75) to address the urgent need for clear sanctioning mechanisms following the implementation of the new Law on Competition in July 2019. However, after five years of enforcement, various gaps and inconsistencies have been exposed that hinder its application. These shortcomings have reduced the deterrent effect of the sanctioning regime, and created legal uncertainty for market participants.

A recent case involving Duc Giang – Lao Cai Chemicals' acquisition of another chemical company—one of the first cases of economic concentration violation to be sanctioned by the National Competition Commission (NCC) since the Law on Competition took effect—highlights the practical difficulties under Vietnam's competition law enforcement regime.