Decree No. 35/2020/ND-CP

Determination of the Relevant Market and Market Share

• Specifies the criteria for identifying the relevant product market and relevant geographic market.
• Provides guidance on the calculation of market share for businesses within the relevant market.

Assessment of Anti-Competitive Effects

• Establishes criteria and methodologies for evaluating the impact or potential impact of anti-competitive agreements that may significantly restrict competition.

Determination of Significant Market Power

• Defines the factors used to assess a business’s market power, including:
  • Market share
  • Financial strength
  • Barriers to market entry
  • Access to supply and distribution networks

Economic Concentration Control

• Sets thresholds that require businesses to notify the National Competition Commission before engaging in economic concentration activities (e.g., mergers and acquisitions). A notification is required when:
  • The total assets or total revenue in Vietnam of the business or its affiliated group reaches or exceeds VND 3,000 billion in the fiscal year preceding the planned concentration.
  • The transaction value of the economic concentration reaches or exceeds VND 1,000 billion.
  • The combined market share of the participating businesses is 20% or more in the relevant market in the fiscal year preceding the planned concentration.

Regulations on Business Control and Domination

• Defines scenarios in which a company is considered to control or dominate another business, including:
  • Owning more than 50% of the charter capital or voting shares of the acquired business.
  • Owning or controlling over 50% of the assets of the acquired business in its entirety or in a specific industry.

Significance of Decree 35/2020/ND-CP

This decree plays a critical role in providing detailed implementation guidelines for the Competition Law, ensuring a fair and healthy business environment in Vietnam by preventing monopolistic practices, abuse of market power, and anti-competitive agreements.