ENTERPRISES WHOSE TRANSACTION VALUE IS HIGHER THAN VND 1,000 BILLION MUST NOTIFY PRIOR TO UNDERGOING ECONOMIC CONCENTRATION

According to Decree No. 35/2020/ND-CP issued by the Government on March 24, 2020 and coming into force from May 15, 2020:

– Accordingly, enterprises which intend to participate in economic concentration must notify the National Competition Commission prior to implementation if falling within one of the following cases:

(i) Total assets on Vietnamese markets of such enterprises or the group of associates of which such enterprises are members amount to VND 3,000 billion or higher in the financial year right before the year of the intended economic concentration; or

(ii) Total sales revenue or purchase revenue on Vietnamese markets of such enterprises or the group of associates of which such enterprises are members amounts to VND 3,000 billion or higher in the financial year right before the year of the intended economic concentration; or

(iii) The transaction value of such economic concentration is VND 1,000 billion or higher; or

(iv) The combined market share of all enterprises intending to participate in economic concentration accounts for 20% or higher of the relevant market in the financial year right before the year of the intended economic concentration.

Within 30 days from the date on which a complete and valid economic concentration notification dossier is received, the National Competition Commission shall notify the preliminary assessment results.

Best regards,