In brief
- VCCA publishes several merger decisions
- VCCA preparing to study aviation and e-commerce sectors
A number of recent merger assessments are now available on the VCCA’s website.
This update was published on 16 October 2020 as part of our quarterly newsletter, Asia Pacific Competition Highlights. Click here to access the full report, which covers the most notable antitrust developments across 11 Asia Pacific jurisdictions.
VCCA published several merger decisions
A number of recent merger assessments are now available on the VCCA’s website.
Recently, the VCCA received an economic concentration notification regarding Asia Breweries Company’s acquisition of 100% capital contribution in BeerCo Limited. While the acquisition took place offshore, the parties do have business in Vietnam through their subsidiaries. The VCCA announced that the acquisition was not prohibited pursuant to Article 30 of the Competition Law. More information can be found here.
The VCCA received notification regarding a proposed joint venture between Zenith Electronics LLC and Luxoft USA, Inc., which is expected to operate in the automotive sector. The joint venture will be carried out entirely in the United States. While the two companies do not have a commercial presence in Vietnam, the parent company of both entities do. The proposed joint venture was deemed to not be prohibited pursuant to Article 30 of the Competition Law. More information can be found here.
The VCCA also received notification regarding the merger of the Bayer Vietnam Company Limited into Dekalb Vietnam Company Limited. Post-transaction, only Bayer Vietnam Company Limited will continue to operate in the market. The MOIT announced that merger was not prohibited pursuant to Article 30 of the Competition Law. More information can be found here.
The VCCA also reported on two other merger control cases, one involving a transaction within the industrial real estate development and management field, and the other involving the internal restructuring of subsidiary companies under one of the largest commercial real estate development group in Vietnam.
VCCA increases focus on the aviation and e-commerce sector
Based on recent updates by the VCCA’s Investigation Department, we see an increase in focus by the regulators concerning the aviation sector and e-commerce sector.
Within the framework of “Improving and enhancing the capacity to enforce the Competition Law” sponsored by the Japan International Cooperation Agency (“JICA”), the VCCA has been seeking to retain qualified and experience consultants to conduct a study on “the state of competition in the air passenger transportation services market in Vietnam.” Specifically, the consulting company will be charged with collecting market information, conducting direct interviews and building surveys to assess the competitive situation within the air passenger transport services market in Vietnam. More information can be found here.
The VCCA also announced that it has successfully recruited domestic consultants to participate in a study on the state of competition in Vietnam’s e-commerce market”. The selected consultants will be charged with collecting information and data for research; conducting surveys on businesses providing e-commerce services, and retailers/consumers of goods and service on e-commerce channels; conducting in-depth interviews with representatives of agencies, organizations and individuals related to business and competition activities in the ecommerce sector in Vietnam, etc. More information can be found here.
Such developments by the VCCA departments suggest an increased focus by the regulators on regulating and investigating competition issues within Vietnam’s aviation sector and e-commerce sector.
