Provisions of Vietnam Competition Law on Sample Clauses

Provisions of Vietnam Competition Law on the determination of relevant market Overall, the determination of relevant market by Vietnam Competition Law is consistent with commonly used principles: based on the assessment of demand-side substitutability and supply-side substitutability. The criteria for the determination of the relevant market by Vietnam Competition Law are provided in very specific provisions of Decree 116. On the positive side, the specific prescription helps to enhance the transparency of the Law as well as to create favorable conditions for competition authorities in the enforcement process. However, the listing of specific criteria as well as the abridgement of economic evaluations in the process of determining relevant market has caused many problems for competition authorities and in some cases direct the assessment of competition authorities away from market realities. Firstly, Clause 2, Article 4 of Decree 116 stipulates: ―the characteristics of goods and services are determined based on one or several following grounds: (a) physical characteristic, (b) chemical characteristic, (c) technical features, (d) side effects on the users, (e) ability to assimilate. The specific criteria mentioned above may be appropriate for goods but do not have any connection to services. Therefore, in case of determining relevant market of a service, competition authorities can not apply these criteria to determine the characteristics of the service, thus, does not guarantee all elements determining relevant market in accordance with the Law10. Secondly, about the identification of price substitutability, Point c, Clause 5, Article 4 of Decree 116 stipulates that ―goods and services can be considered a substitute for each other on price if over 50% of a random sample of 1,000 consumers 10 Clause 1, Article 4 of Decree 116 stipulates ―the relevant product market is the market of goods and services that can be interchangeable in terms of characteristics, usage and prices‖. living in the relevant geographic area change or intend to purchase other goods and services having similar characteristics, purpose of use with goods, services they are using or intend to use in case the price of goods and services increased more than 10% in 06 consecutive months‖. It can be seen here is a simple form of the SSNIP test widely recognized by competition authorities in the world in determining relevant market. In nature, SSNIP test (small but significant and non-transitory increase in price – the minimum price i...
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Related to Provisions of Vietnam Competition Law on

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