Several Noted Points on Law Competition of 2018

Vietnam Law on Competition has been adopted and will be effective on July 1st, 2019. The competition law of 2018 has changed in comparison with the Law on Competition 2004. Theses changes are fundamental which enterprises should be aware of when entering into Vietnam through M&A activities. Competition lawyer in Vietnam should be consulted for update and development to avoid non-compliance.

Firstly, the Competition Law 2018 gave up regulations on the limit of acts of economic concentration. Accordingly, Article 30 prohibits an enterprise from conducting economic concentration that has the potential to cause significant adverse effects on competition in the Vietnamese market. Contrary to previous regulations, Competition Law 2004 prohibits economic concentration if the combined market share of enterprises participating in economic concentration accounted for more than 50% in the relevant market.

Secondly, the Competition Law 2018 under Article 112 provides clemency policy for enterprises violating competition regulations. Accordingly, enterprises which voluntarily declare to help the National Competition Committee detect, investigate and deal with prohibited competition restriction acts will be exempted or reduced penalties according to the leniency policy. The leniency policy is applicable to no more than three first enterprises applying for leniency to the National Competition Commission.

Thirdly, unlike the Competition Law 2004, the Competition Law 2018 specifies the maximum fine for violations of competition law. 

For organization:

- Violating regulations on the acts of economic concentration: a maximum fine of 5% of the total turnover of the business on the relevant market. 

- Violating regulations on unfair competition: a fine of up to VND 2 billion

- Violation of other regulations: up to 200 million VND.

For individual, the fine level is 50% of the organization’s level.

Fourth, on threshold of economic concentration.The Competition Law 2004 stipulated that for centrally-run enterprises with a market share of between 30% and 50% in the relevant market, the competition authority must notify the competition authority before conducting the economic concentration. At present, the Competition Law 2018 is not regulated specifically as above, but only the notification threshold of economic concentration is determined based on one of four criteria as following:

- Total assets on the Vietnamese market of enterprises participating in economic concentration;

-The total turnover in the Vietnamese market of enterprises participating in economic concentration;

- Transaction value of economic concentration;

- Market share in the relevant market of enterprises participating in economic concentration.

Finally, new regulation on the time limit for dealing with a breach of competition law. Previously, to solve and deal with cases of economic concentration violation, it is necessary to undertake a preliminary investigation and formal investigation. In particular, the preliminary investigation is 30 days; formal investigation is 60 days with unfair competition; 180 days with the agreement restriction competition, economic concentration. Competition Law 2018 no longer stipulates two phases of the above investigation, but only that the investigation period is 09 months for restricted competition; 90 days with economic concentration; 60 days with unfair competition cases.

How ANT Lawyers Could Help Your Business?

Please click here to learn more about Corporate and M&A Legal Service or contact our lawyers in Vietnam for advice. Send us request via email at ant@antlawyers.vn or call us at +84 28 730 86 529

Read More

Process Service in Vietnam

Process service is the notification and delivery of court and the civil judgment agency’s documents to litigants in accordance with the law.

The process service is conducted using the following methods:

Grant, served and notify directly by post or by authorized third party;

Publicly listing;

Announcement on the mass media.

With the 1st and 2nd methods, previously, the court clerk, expert at the civil enforcement agency or even judges and executors served on their own. Or, these agencies can also send a letter by post; send the documents that need to be served to ask police precinct, ward people’s committee or neighborhood steering committee to serve instead.

With the 3rd method, the serve is done through such media as radio, television, newspaper, radio

Finally, because of the significance and importance of the serve, law regulates that the person who obliged to serve the procedural documents, if do not done correctly their responsibilities then depending on the nature and seriousness of the violation, he/she must be disciplined, administratively sanctioned or prosecuted for criminal liability; if causing damage, he/she have to pay compensation in accordance with law.

For process service in Vietnam, let ANT Lawyers support you. Send us request via email at ant@antlawyers.vn or call us at +84 28 730 86 529

Read More

What are Conditions to Meet for Trading civil cryptographic products and services?

According to Article 30 and 31, Law on Cyber Information Security,

Civil cryptographic products and services are:

1. Civil cryptographic products include cryptographic documents and technical and professional equipment used to protect information not classified as state secret.

2. Civil cryptographic services include services of protection of information using civil cryptographic products; inspection and assessment of civil cryptographic products; and counseling on cyber information confidentiality and security using civil cryptographic products.

Trading in civil cryptographic products and services requires:

1. An enterprise that wishes to trade in civil cryptographic products and services on the list of civil cryptographic products and services shall obtain a license for doing so.

2. An enterprise shall be granted a license for trading in civil cryptographic products and services when fully meeting the following conditions:

a/ Having managerial, administration and technical staff members who meet professional requirements on information confidentiality and security;

b/ Having equipment and physical foundations suitable to the scale of provision of civil cryptographic products and services;

c/ Having a technical plan conformable with standards and technical regulations;

d/ Having a cyber information confidentiality and security plan in the course of management and provision of civil cryptographic products and services;

e/ Having an appropriate business plan.

3. Civil cryptographic products shall be inspected and certified as conformable with regulations before being marketed.

4. To obtain a license for trading in civil cryptographic products and services, an enterprise shall pay a fee in accordance with the law on charges and fees.

5. The Government shall promulgate a list of civil cryptographic products and services and detail this Article.

Our Cyber Security Law Firm in Vietnam always follow development of laws in Vietnam to provide the client with update. Please contact ANT Lawyers for service inquiries.

Read More

What Documents Required to File Petition by Arbitration in Vietnam?

According to Article 30 of Vietnam Laws on Commercial Arbitration, petitions and enclosed documents for initiating dispute by arbitration in Vietnam will be submitted as following instructions:

When a dispute is settled at an arbitration center, the plaintiff shall file a petition at the arbitration center as agreed. When a dispute is settled by ad hoc arbitration, the plaintiff shall make a petition and send it to the defendant.

The petition contains the following details:

1.Date of its making;

2.Names and addresses of the parties; names and addresses of witnesses, if any;

3.Summary of the circumstances of the dispute:

4.Grounds and evidence for initiating the lawsuit, if any:

5.Specific requirements of the plaintiff and the value of the dispute:

6.Name and address of the person whom the plaintiff selects as arbitrator or requests to be designated as arbitrator.

Enclosed with the petition shall be the arbitration agreement and the originals or copies of relevant documents.

How ANT Lawyers Could Help Your Business?

Contact Us for ADR & Mediation Services provided by qualified mediators and lawyers, supported by field experts. Via email ant@antlawyers.vn, office tel (+84) 24 32 23 27 71 or talk to our partner directly at + 84 912 817 82

Read More

What Documents and Evidence Should be Required to Arrest or Release Ship from Arrest?

According to Article 134 of Vietnam Law on Maritime, the requester needs to provide documents and evidence attached with a written request for arrest of ships or a written request for release of ships from arrest. 

Upon filing a request for arrest or release of ships, the person requesting such arrest must file a written request for arrest of ships or a written request for release of ships from arrest, enclosing documents and evidence stating that such request or release of ships is sound and legitimate.

Where documents about and evidence for a request for arrest or release of ships from arrest are all written in a foreign language, a Vietnamese translation copy must be submitted and legally authenticated in accordance with Vietnamese legislation. With respect to documents and papers created, issued and certified by a foreign competent authority in accordance with such foreign country's laws, the consular legalization is required, except when this consular legalization process is exempted in uniformity with international agreements to which the Socialist Republic of Vietnam is a party.

How ANT Lawyers Could Help Your Business?

Please click to learn more about Maritime Lawyers in Vietnam or contact our lawyers for advice via email ant@antlawyers.vn or call our office at (+84) 24 32 23 27 71

Read More

H1 foreign investments in property exceed 2017

Foreign direct investment (FDI) capital pledged for Vietnam’s property market in the year’s first half witnessed a big surge and was higher than total pledged capital of the entire year of 2017, according to national investment data.

Data of the Ministry of Planning and Investment’s Foreign Investment Agency shows that the property sector attracted the second highest registered FDI capital in January-June with over US$5.5 billion, or over 27% of total registered capital in the period. Meanwhile, last year recorded only US$3.05 billion pledged for the sector, equivalent to some 8.5%.

Among large-scale property investments is the smart town project worth more than US$4 billion in Hanoi’s outlying district of Dong Anh. Developed by a Japanese investor, it is the most capital-intensive FDI project in the six-month period.

Another big investment is the Lotte Mall Hanoi project by a South Korean investor. This US$600-million project is a complex comprising shopping mall, hotel, office space and apartment functions.

Amata Vietnam earlier got licensed to construct an industrial city in the northern province of Quang Ninh. The 714-hectare project is an expansion to the north by the company after successfully developing Amata City Bien Hoa in the southern province of Dong Nai, which has attracted 165 investors from over 20 countries and territories.

Commenting on the property market in the year’s first half, deputy managing director of Savills Vietnam Troy Griffiths said that the stable macro-economic development has given a boost to the domestic market and FDI attraction. Foreign investors have still showed interests in Vietnam’s property market.

Besides direct investments, foreign indirect investments have increased via mergers and acquisitions (M&A) and stake purchases at domestic businesses or developed projects.

M&A activities have been quite busy in the past time. Notably, Japan’s Nomura Real Estate has acquired a 24% stake in Sunwah Tower, a 22-level office building located right in the heart of HCMC. This is the first grade-A office building in Vietnam that Nomura has invested in.

Vingroup’s Vinhomes last April signed a deal with Singaporean investment fund GIC Private Limited, under which the latter will invest US$1.3 billion via acquisition of Vinhomes shares and provision of a debt-like instrument to implement projects.

The central bank’s measures to restrict property lending, control bad debts and maintain credit growth have made domestic investors seek other capital sources, including via M&A.

Meanwhile, in the eyes of foreign investors, the domestic property sector still holds potential for growth. High profitability has kept Vietnam appealing to investors in comparison to regional rivals.

According industry experts, this year may see a new record of M&A transactions in the property sector. This investment model is getting more popular when combining strengths of parties involved, which are financial capabilities and experience of foreign investors and domestic enterprises’ understanding of investment procedures and ownership of large land sites.

Su Ngoc Khuong, head of investment at Savills Vietnam, noted that investment and M&A activities are mainly carried out by investors from Asian countries, particularly Singapore, South Korea, Malaysia, Japan, Hong Kong and China.

Source: The Saigon Times

How ANT Lawyers Could Help Your Business?

Please click to learn more about Real Estate Law Firm in Vietnam or contact our lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at (+84) 24 32 23 27 71

Read More