[Legal Updates] Letter Of Quick Legal Update 30/3/2020

LEGAL UPDATES

[Legal Updates] Letter Of Quick Legal Update 30/3/2020

1| The Government issued new Decree 35/2020/ND-CP guiding the implementation of the Competition Law 2018

The Decree 35/2020/ND-CP issued on March 24th 2020, providing detailed guidance on the implementation of the Vietnamese Law on Competition 2018. The Decree specifies two important points, namely:

a) The two cases considered as controlling, dominating the acquired company or certain business lines of such company, including:

  • The acquiring company owns more than 50% of the charter capital or more than 50% voting shares of the target company;
  • The acquiring company acquires the ownership right or usage right over more than 50% of the assets in all or some of the business lines of the target company.

b) Specifying the barriers to enter into or expand the market that restricts the market competition, including:

  • The legal barriers created by the laws and policies include regulations on import duties and restrictions; technical regulations; conditions and procedures for producing and trading in goods and services; regulations on the use of goods and services; professional standards and other administrative decisions of state agencies;
  • Financial barriers including costs of investment in production and trading of goods and services, accessing to capital, credit and other financial resources of companies;
  • Initial costs of entering a market that enterprises cannot recover when withdrawing from such market;
  • Barriers to access and hold supply and essential infrastructure for companies’ production and business operation; distribution network, consumption of goods and services on the market;
  • Consuming customs;
  • Business customs and practices;
  • Barriers related to the exercise of intellectual property rights of organizations and individuals, including copyright and neighbouring rights, industrial property rights and rights to plant varieties as prescribed by intellectual property laws;
  • Other barriers to enter or expand the market.

The Decree will be effective from May 15th, 2020.

2| The Decree 15/2020/ND-CP outlining the administrative fines for violations in telecommunications, radiofrequency, technology information, and e-transactions

Notably, Article 101 of the Decree regulates fines of between 10 million – 20 million VND for the following behaviours:

  • Providing and sharing fake information, untruthful information, misrepresenting, slandering, insulting the reputation of agencies, organizations, honour and dignity of individuals;
  • Providing and sharing information promoting the superstition, obscenity, depravity inconsistent with the traditions and customs of the nation;
  • Providing and sharing fabricated, confusing information, inciting violence, crimes, social evils, gambling or serving to gamble;
  • Advertising, propagating and sharing information about prohibited goods and services;
  • Providing and sharing images of Vietnam map but not showing or improperly displaying the national sovereignty;
  • Providing, sharing links to prohibited online contents.

The Decree will be effective from April 15th, 2020.

Download Legal Update as a PDF here.