Economic Concentration Notification Obligations in M&A Transactions in Vietnam
In mergers and acquisitions (M&A) transactions, the parties often focus on investment approvals, market access conditions, tax, foreign exchange, and procedures for amending enterprise registration. However, the obligation to notify an economic concentration under competition law is also an important matter that should be considered during the transaction process. This article examines one of the key issues in the preparation and due diligence of an M&A transaction: (i) the factors determining whether a transaction constitutes an economic concentration; and (ii) the application of the economic concentration notification thresholds under the prevailing law. 1. Forms of economic concentration The Law on Competition 2018 recognises five categories of economic concentration: enterprise merger, enterprise consolidation, acquisition of an enterprise, joint venture between enterprises, and other forms of economic concentration as prescribed by law. In particular: (i) An enterp...