The new competition law will create a legal framework to better manage economic concentration. (Photo: forbesvietnam.com.vn) Hanoi (VNS/VNA) - The new competition law will create a legal framework tobetter manage economic concentration, experts said.
TranPhuong Lan from the Vietnam Competition and Consumer Protection Authority saidat a recent workshop to disseminate the Law on Competition 2018 that the lawenables antitrust investigations, even for economic concentration dealsconducted overseas that impact the market.
Theold Law on Competition 2004 has limited ability to investigate overseas deals.
Thenew law would also help better control economic concentration deals whichresulted in unreasonable increases in marine transport fees or medicine prices,for example, according to Lan.
RegardingGrab’s acquisition of Uber in Southeast Asia, including Vietnam, Lan said thatthe antitrust investigation will be carried out until mid-November.
Thiscase will be handled following the Law on Competition 2018 if the investigationis still ongoing on July 1, 2019 when the new law comes into effect.
Inthe 2004 law, an enterprise or group of enterprises with a market share of 30 percentor more was considered dominant and restricting competition. However, the newlaw says that market share of 30 percent or more does not always mean theantitrust regulations are violated if the dominant enterprises do not havesignificant impacts on the market.
In a document sent to the competition authority,Grab said that its market share after acquiring Uber in Vietnam was below30 percent but the ride-hailing firm did not provide detailed evidence for thefigure.
NguyenSinh Nhat Tan, acting Director of the Vietnam Competition and ConsumerProtection Authority, urged firms to study the new competition law carefully toavoid violations because there were many new points.
Tansaid that the Ministry of Industry was speeding up the compilation and issuanceof decrees to instruct the implementation of the Law on Competition 2018.
Thelaw was expected to create a healthy competition environment to promoteeconomic development, Tan said.
TheLaw on Competition 2018 was passed on June 12.-VNS/VNA
TranPhuong Lan from the Vietnam Competition and Consumer Protection Authority saidat a recent workshop to disseminate the Law on Competition 2018 that the lawenables antitrust investigations, even for economic concentration dealsconducted overseas that impact the market.
Theold Law on Competition 2004 has limited ability to investigate overseas deals.
Thenew law would also help better control economic concentration deals whichresulted in unreasonable increases in marine transport fees or medicine prices,for example, according to Lan.
RegardingGrab’s acquisition of Uber in Southeast Asia, including Vietnam, Lan said thatthe antitrust investigation will be carried out until mid-November.
Thiscase will be handled following the Law on Competition 2018 if the investigationis still ongoing on July 1, 2019 when the new law comes into effect.
Inthe 2004 law, an enterprise or group of enterprises with a market share of 30 percentor more was considered dominant and restricting competition. However, the newlaw says that market share of 30 percent or more does not always mean theantitrust regulations are violated if the dominant enterprises do not havesignificant impacts on the market.
In a document sent to the competition authority,Grab said that its market share after acquiring Uber in Vietnam was below30 percent but the ride-hailing firm did not provide detailed evidence for thefigure.
NguyenSinh Nhat Tan, acting Director of the Vietnam Competition and ConsumerProtection Authority, urged firms to study the new competition law carefully toavoid violations because there were many new points.
Tansaid that the Ministry of Industry was speeding up the compilation and issuanceof decrees to instruct the implementation of the Law on Competition 2018.
Thelaw was expected to create a healthy competition environment to promoteeconomic development, Tan said.
TheLaw on Competition 2018 was passed on June 12.-VNS/VNA
VNA
