What is prohibited economic concentration in Vietnam? Which agency receives notification dossiers in Vietnam?

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Question date: 05/12/2022

What is prohibited economic concentration in Vietnam? Which agency receives notification dossiers in Vietnam? 

Hi, I have a problem that needs to be answered. I am a student at the Faculty of Economics - Finance at University B. I am studying about forms of economic concentration but I still do not understand the regulations related to this issue. I wonder if any form of economic concentration is prohibited? If so, what are these cases? 

Please advise. Thankyou. 

    • 1. What is prohibited economic concentration in Vietnam?

      Article 30 of the 2018 Competition Law stipulates that prohibited economic concentration as follows:

      Economic concentration shall be prohibited if it causes or probably cause substantial anti-competitive effects on the Vietnamese market.

      According to Article 29 of the 2018 Competition Law, categories of economic concentration are prescribed:

      1. Economic concentration includes the following categories:

      a) Merger of enterprises;

      b) Consolidation of enterprises;

      c) Acquisition of enterprises;

      d) Joint venture between/among enterprises;

      dd) Other categories of economic concentration as per the law.

      2. Merger of enterprises means an act whereby one or several enterprises transfer all of its/their property, rights, obligations and legitimate interests to another enterprise, and at the same time terminate the existence of the merged enterprises.

      3. Consolidation of enterprises means an act whereby two or more enterprises transfer all of their property, rights, obligations and legitimate interests to form a new enterprise and, at the same time, terminate the existence of the consolidating enterprises.

      4. Acquisition of enterprises means an act whereby an enterprise acquires the whole or part of property or shares of another enterprise sufficient to control or dominate all or one of the trades of the acquired enterprise.

      5. Joint venture between enterprises means an act whereby two or more enterprises jointly contribute part of their property, rights, obligations and legitimate interests to the establishment of a new enterprise.

      Thus, economic concentration in Vietnam includes the following categories: merger of enterprises, consolidation of enterprises, acquisition of enterprises, joint ventures between enterprises. If such categories of concentration have an impact or are likely to have a significant anticompetitive effect in the Vietnamese market, they will be banned.

      2. Which agency receives notification dossiers in Vietnam?

      Pursuant to Article 35 of the 2018 Competition Law, receipt of notification dossiers is as follows:

      1. The National Competition Commission shall receive notification dossiers.

      2. Within 7 working days from receipt of an exemption application, the National Competitive Commission shall notify the applicant in writing that whether the application is complete and valid.

      If the application is incomplete or invalid, the National Competition Commission shall notify the applicant in writing of deficiencies need amendments and allow them 30 days to make amendments from the date of notice.

      Upon expiry of 30 days, if no amendment is made or the application is not amended completely, the National Competition Commission shall return the notification dossier.

      Therefore, according to the above regulations, the notification dossiers of economic concentration in Vietnam are received by the National Competition Commission.

      Best Regards!

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    "This English translation is for reference purposes only and not a definitive translation of the original Vietnamese texts"

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