Vietnam: Implemented Decree No. 75/2019/ND-CP including merger control regulation

On 26 September 2019, Decree No. 75/2019/ND-CP entered into force. The regulation is applicable to all economic sectors and is designed to regulate and monitor mergers and acquisitions that may potentially result in a reduction of market competition. The regulation delineates the procedures and requirements for merger notifications and assessments. In particular, enterprises that engage in mergers, consolidations, acquisitions, or joint ventures without the requisite authorisation are liable to pay fines amounting to between 1% and 5% of their total turnover from the relevant market in the financial year preceding the commission of the offence. To illustrate, both the acquiring and acquired companies in prohibited acquisitions are liable to substantial fines based on their annual market turnover. The regulatory measures include the mandatory division of the merged entities and forced sale of the acquired assets. Additionally, the merged entities may be required to operate under the strict control of the relevant regulatory authority, particularly with regard to pricing and other contract terms. Failure to notify the relevant regulatory authority of planned economic concentrations may result in the imposition of fines and the revocation of enterprise registration certificates.