Regarding exemptions. Agreements that can be exempted under Competition Law include five types of acts which are assessed on basis of conditional prohibition. It means exemption is applicable to the agreements that can be prohibited if combined market share of parties of the agreements is of 30% or more in the relevant market. Under Article 10 of Competition Law, only competition restriction agreements prescribed in Clause 2, Article 9 can fall within the scope of agreements that are possible to be granted terminable exemption. Competition restriction agreements mentioned above shall enjoy exemption for a definite term if they meet the following conditions in order to reduce costs to benefit consumers:
Regarding exemptions. Firstly, the scope of types of agreements that are exempt as the current regulations is not reasonable. As analyzed above, price-fixing, market allocation, output restriction agreements always have the nature of restricting competition and seriously violate competition principles. These agreements must be strictly prohibited and are not exempted. However, according to Vietnam Competition Law, these agreements are within the scope of agreements that can be exempted for a certain period if they meet the conditions stipulated in Clause 1, Article 10 of Competition Law. Secondly, provisions on exemption have not mentioned the principles to determine the time limit for exemption of competition restriction agreements. As stipulated in Article 10 of Competition Law, the exemption of competition restriction agreements is within a period. Exemption for a period for competition restriction agreements is entirely reasonable. Because, over time these arrangements tend to no longer meet the conditions required for exemption anymore. Competent agencies and individuals taking over the dossier, making decision on the exemption of competition restriction agreement can propose and decide the time limit for the exemption. However, the lack of stipulations on time limit of exemptions in Competition Law leads to the lack of basis to determine the period for the exemption of competition restriction agreements. Thirdly, provisions on exemption for prohibited competition restriction agreements are in contradiction with agreements on price. Specifically, the act of ―agreement on directly or indirectly fixing goods or service price‖ stipulated in Clause 1, Article 8 and is prohibited under Clause 2, Article 9 of Competition Law under the scope of competition restriction agreements that can be exempted. However, among the conditions for exemption include the conditions
Regarding exemptions. As stated in subsection 2 above, for agreements belonging to the severe group (hardcore cartels) include 4 types of acts: (1) price-fixing agreement, (2) market allocation agreement; (3) agreement to restrict production, and (4) bid rigging, Vietnam should consider amending the current provisions in the direction to prohibit in all cases and without exemptions for this group of acts. For other agreements, Vietnam needs to study and apply appropriate principles, competition authorities would consider based on the evaluation of «cost» and «benefit» factors of the agreement. With this approach, Vietnam does not need to promulgate provisions on exemptions. The conditions for exemptions stipulated in Article 10 of Competition Law can be included in the set of criteria to evaluate «costs» and «benefit» of the acts of agreement (other than hardcore cartels). At the same time, the time limit of exemptions and the conditions to extend the exemption period should be considered to be stipulated.
