Vietnam: Implemented Decree No. 35/2020/ND-CP including merger control regulation

On 15 May 2020, Decree No. 35/2020/ND-CP entered into force. This regulation sets forth the thresholds for notifying the National Competition Commission (NCC) about economic concentrations and outlines the preliminary evaluation process. It specifies conditions under which economic concentrations are assessed for anti-competitive effects, including analyzing joint market share and evaluating the potential for increased market power. Notification thresholds are outlined, such as possessing assets or achieving a turnover of VND 3,000 billion in the Vietnamese market. Additional criteria for notification include the combined market share of participating enterprises reaching at least 20% of the relevant market or the value of the economic concentration transactions exceeding VND 1,000 billion. For specialized sectors like banking and insurance, even higher thresholds are specified, including asset requirements of VND 15,000 billion for insurance companies and significant market share or asset control stipulations for credit institutions. Once notified, the Commission conducts a preliminary evaluation within 30 days to decide whether to consent to the economic concentration or to proceed with a detailed review. If thresholds are not exceeded or specific conditions are met, such as market share configurations, the economic concentration may proceed without further official evaluation.