Notification dossier on economic concentration in Vietnam according to the Competition Law 2018

Notification dossier on economic concentration in Vietnam according to the Competition Law 2018 (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

1. Notification dossier on economic concentration in Vietnam according to the Competition Law 2018

Notification dossier on economic concentration according to Article 34 of the Competition Law 2018 are as follows:

- A notification dossier shall consist of:

+ A notification of economic concentration issued by the National Competition Commission;

+ Agreed contents of the economic concentration or draft contracts, memorandum of understanding regarding economic concentration between/among enterprises;

+ Valid copies of the business registration certificates of similar documents of all enterprises engaging in economic concentration;

+ Financial statements of all enterprises engaging in economic concentration in two consecutive years before the notification year or, in case of newly-established enterprises, from the establishment time to the notification time as per the law;

+ The list of parent companies, subsidiaries, associate companies, branches, representative offices and other affiliated entities of every enterprise engaging in economic concentration (if any);

+ The list of goods, services dealt in by each enterprise engaging in economic concentration;

+ Information about market shares in the sector where economic concentration will take place held by every enterprise engaging in economic concentration in 2 consecutive years before the notification year;

+ Proposed remedies for possible anti-competitive effects of the economic concentration;

+ Report on assessment of positive effects of economic concentration and measures to enhance the positive effects of economic concentration.

- Enterprises submitting notification dossiers shall be accountable for the truthfulness of their dossiers. Vietnamese translations are required if documents in the dossier are made in foreign language.

2. Preliminary assessment of economic concentration in Vietnam

Preliminary assessment of economic concentration according to Article 36 of the Competition Law 2018 is as follows:

- The National Competition Commission shall be responsible for preliminary assessment of economic concentration. Matters to be preliminarily assessed in economic concentration:

+ Combined market share of enterprises engaging in the economic concentration on the relevant market;

+ The degree of concentration on the relevant market before and after the economic concentration;

+ The relationship of the parties engaging in the economic concentration in the production, distribution or supply chain for a certain kind of goods/service or the business lines of the parties engaging in the economic concentration which are inputs of or complementary to one another;

- Within 30 days from receipt of a complete and valid notification dossier, the National Competition Commission shall notify the preliminary assessment result that:

+ economic concentration is approved; or

+ economic concentration is subject to further official assessment.

- Upon expiry of 30 days prescribed in Clause 2 of Article 36 of the Competition Law 2018, if the National Competition Commission fails to notify the preliminary assessment result, the economic concentration may be effected and the National Competition Commission may not give a notification as provided in Point b Clause 2 of Article 36 of the Competition Law 2018.

- The Government shall provide guidelines for Clause 1 of Article 36 of the Competition Law 2018and criteria for determining economic concentration subject to official assessment as prescribed in Point b Clause 2 of Article 36 of the Competition Law 2018.

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