Understanding Competition Policy and Law in Vietnam

“Buôn có bạn, bán có phường” – an old Vietnamese saying highlighting the importance of healthy competition in business. How can businesses “play fair” while thriving and adhering to legal regulations? The answer lies in understanding the distinction between competition policy and competition law.

Competition Policy vs. Competition Law

1. Definition

Competition policy refers to the set of government measures and initiatives designed to promote fair competition and prevent anti-competitive practices in the marketplace.

Competition law, as the name suggests, is the body of legislation that governs competitive behavior, anti-competitive practices, monopolies, and measures to safeguard competition.

2. Objectives

Competition policy aims to create a level playing field for businesses, fostering transparency and encouraging companies to enhance their competitiveness, ultimately contributing to national economic growth.

Competition law has a more specific objective: to prevent and address violations of competition regulations, protecting the legitimate interests of businesses and consumers.

3. Forms of Implementation

Competition policy manifests in various forms, including business support programs, administrative reform, and promotion of innovation.

Competition law is clearly articulated through the provisions and regulations outlined in the Competition Law 2018 and its accompanying guidelines.

Navigating Competition: Applying Policy and Law

Mr. Minh, owner of a small transportation company in Cau Giay District, Hanoi, shared his concern: “I’ve heard that competing by drastically lowering prices can result in penalties. What constitutes ‘too low’ a price? Am I unintentionally violating the law?”

Mr. Minh’s story reflects a common concern among businesses. Lack of legal awareness can lead to unintentional violations. So, how can businesses diagnose and address these challenges?

• Understand the rules: Thoroughly study the Competition Law 2018 and related documents, paying particular attention to prohibited practices such as anti-competitive agreements and abuse of dominant market positions.
• Seek expert advice: Consult with lawyers and competition law specialists to address specific questions and develop compliant business strategies.
• Apply flexibly: Effectively combine leveraging business support policies with strict adherence to competition law regulations.

Fair Play for Mutual Success: Towards Sustainable Development

Competition is a crucial driver of economic growth, but “healthy” competition is the key to shared prosperity. When businesses “play fair” and abide by the rules, a transparent and equitable business environment is created where all enterprises have the opportunity to thrive and succeed.

Are you struggling to differentiate between competition policy and law? Do you need guidance on building a compliant business strategy? Contact us at 0968239999 or email [email protected]. The experienced team at XE TẢI HÀ NỘI is ready to assist you!

In addition to understanding competition policies and laws, you can find more information about trucks suitable for your business needs on the XE TẢI HÀ NỘI website.