In an effort to gain entry to the World Trade Organisation and to further integrate into the world economy, Vietnam has introduced its first ever law on competition. The National Assembly, Vietnam's highest legislative body, passed the Competition Law on 9 November 2004.
The law, which will apply to all businesses operating in Vietnam from 1 July 2005, comprises six chapters and 123 articles. It stipulates businesses' right to competition, regulations to control activities barring competition and measures to remove anticompetitive behaviour.
Under the new legislation:
a company controlling the market will only be considered in violation of the law if they use their market power against customers and competitors
mergers, acquisitions or joint ventures must be reported to the regulatory authority if the company holds 30 per cent market share or more, except for small and medium sized businesses. Companies with a 50 per cent share or greater are prohibited from mergers and joint ventures
‘pyramid schemes’ are singled out, with the banning of four activities facilitating pyramid scheme operations.
