Resolving disputes among enterprises within the same industry

If not properly settled, disputes not only undermine the reputation and business efficiency of each enterprise but may also negatively affect the overall development of the entire industry. Below, NPLaw provides legal consultation on the resolution of disputes among enterprises within the same industry.

If not properly settled, disputes not only undermine the reputation and business efficiency of each enterprise but may also negatively affect the overall development of the entire industry. Below, NPLaw provides legal consultation on the resolution of disputes among enterprises within the same industry.

I. Current situation of disputes among enterprises within the same industry

In the digital economy era, disputes among enterprises are increasingly diverse and complex. Notable issues include disputes over sale or supply contracts, acts of unfair competition (such as predatory pricing, false advertising, trademark infringement, misappropriation of trade secrets), as well as disputes related to joint ventures, partnerships, and technology transfers.

In practice, the number of disputes in commerce and competition submitted to courts, commercial arbitration, and the Competition Authority has been steadily rising. This phenomenon states a dynamic business environment with a lot of opportunities, but also reflects a lack of consistency in cooperation mechanisms, compliance with the law, and adherence to fair competition principles among many enterprises.

II. Definition and common instances of disputes among enterprises within the same industry

1. Definition

Disputes among enterprises within the same industry are understood as conflicts or clashes of interests arising in the course of production and business activities between parties engaged in the same line of business. Such disputes may stem from disagreements regarding contractual rights and obligations, violations of competition standards, or acts that cause damage to competitors in the pursuit of market advantages.

2. Common instances

Disputes among enterprises within the same industry may arise from:

Contractual disputes: Delayed delivery, failure to make timely payments, breach of terms in sales or service contracts.
Intellectual property infringement: Unauthorized use of trademarks, industrial designs, or product copying.
Unfair competition: Below cost to eliminate competitors, misleading advertising, disparagement of rival enterprises.
Joint venture/partnership disputes: Disagreements over profit distribution, management and operations, or transfer of capital contributions.
Trade secret and labor disputes: Key employees joining competitors and bringing along production formulas or customer data.

III. Legal framework governing disputes among enterprises within the same industry

1. Relevant regulations

Some main legal instruments directly or indirectly governing disputes among enterprises in the same industry include:

Law on Enterprise 2020: Provisions on rights and obligations of enterprises (Articles 7 and 8); responsibilities of the legal representative (Article 13); etc.
Commercial Law 2005: Regulation of sales contracts (Chapter II), service supply (Chapter III), fundamental principles of commercial activities (Section 2, Chapter I), settlement of commercial disputes (Section 2, Chapter VII); etc.
Competition Law 2018: Prohibitions on anti-competitive agreements (Article 12); abuse of dominant or monopoly positions (Article 27); prohibited economic concentrations (Article 30); acts of unfair competition (Article 45).
Civil Procedure Code 2015: Jurisdiction of courts in commercial disputes (Article 30); procedures for court proceedings (Part Two).
Commercial Arbitration Law 2010: Conditions for arbitration (Article 5); arbitral procedures (Chapters V, VI, VIII).

2. Methods of resolution

When disputes arise, enterprises may choose one of the methods of dispute resolution prescribed in Article 317 of the Commercial Law 2005, including:

Negotiation: Direct meetings between enterprises to reach consensus. This is cost-effective and preserves business relationships.
Mediation: Involves a third party (mediator or mediation organization) assisting the parties in reaching an agreement.
Commercial arbitration: Parties may submit disputes to an arbitral center. Arbitral awards are final and binding.
Court proceedings: Mandatory when no agreement can be reached, especially in complex disputes or where a party refuses to comply voluntarily.

3. Consequences of unresolved disputes

If disputes are not resolved promptly and effectively, the consequences can be severe:

For enterprises: Loss of reputation, financial damages, shrinking market share, even risk of bankruptcy.
For the industry: Distortion of fair competition, emergence of monopolistic or unfair competition practices, hindering collective growth.
For the economy: Market instability, reduced investor confidence, impediments to integration and sustainable development.

IV. Questions on disputes among enterprises within the same industry

1. How do disputes among enterprises within the same industry affect supply chains?

Such disputes often lead to contract disruptions, loss of trust, production delays, late deliveries, or even supply chain breakdowns.

In highly interdependent industries such as logistics and manufacturing–export, a single conflict may trigger a chain reaction affecting the entire domestic and international supply system.

2. What is the process for collecting evidence in such disputes?

The evidence collection process typically involves:

Identifying necessary evidence: Contracts, invoices, payment records, emails, digital information, advertisements, minutes of meetings.
Classifying evidence: Documentary, electronic, testimonial, or expert appraisal evidence.
Self-collection: Maintaining originals or certified copies; extracting data from internal systems; audio/video recordings (if lawful); requesting documents from partners or third parties (banks, logistics providers, e-commerce platforms).
Requesting competent authorities: Parties may request the court or arbitral tribunal to compel individuals or organizations to provide evidence. For foreign evidence, diplomatic channels or judicial assistance may be employed.
Expert appraisal: Where authenticity is contested (e.g., signatures, scanned contracts, digital data), judicial or technical expertise may be sought.
Submission and disclosure: Evidence must be submitted to the court/arbitration body within statutory deadlines and disclosed to the opposing party, except where involving trade secrets or state secrets.

3. What are common causes of disputes in the e-commerce sector?

Typical causes include:

Intellectual property infringement (copying website interfaces, trademarks, or products).
Unfair competition on e-commerce platforms (fake reviews, defamation, misappropriation of customer data).
Service contract violations (logistics, electronic payment, delivery).
Disputes over online advertising, particularly when a competitor exploits another’s brand for customer acquisition.

4. What are the common legal challenges in resolving such disputes ?

Challenges include:

Difficulty in identifying violations in digital environments.
Dispersed and easily manipulated evidence, particularly electronic data.
Disagreement over jurisdiction (court vs. arbitration).
Prolonged proceedings, causing high costs and delays.
Complicated procedures for enforcing foreign arbitral awards or judgments in Vietnam.

5. Can international arbitration be applied?

Where parties involve foreign elements (e.g., foreign-invested enterprises or international contracts), international arbitration (ICC, SIAC, HKIAC, etc.) may be chosen. However, enforcement of international arbitral awards in Vietnam must comply with the New York Convention 1958 and the Civil Procedure Code 2015, making procedures more complex than domestic arbitration.

V. Engaging a trusted lawyer for dispute resolution

In today’s highly competitive environment, having a lawyer alongside brings substantial benefits:

Providing preventive legal advice prior to contract execution.
Representing parties in negotiations or mediation to avoid prolonged litigation.
Assisting with evidence collection and legalization.
Acting in court or arbitration proceedings to safeguard lawful rights and interests.

The foregoing represents the detailed guidance from NPLaw regarding disputes among enterprises within the same industry. Should you have any further inquiries on this matter or other legal issues, please contact NPLaw directly for dedicated consultation and assistance.