Partner
Attorney at Law (Germany)
Penalty on failure to notify economic concentration in Vietnam
- Failure to notify economic concentration may result in substantial penalties
- M&A transactions need to be thoroughly prepared and monitored
- An early assessment of competition law requirements is vital to avoid legal risks and fines
The National Competition Commission has imposed penalties on two enterprises for failing to submit a mandatory economic concentration notification before completing an M&A transaction. The case highlights the importance of assessing competition law requirements early to avoid legal risks, fines, and a potential impact on the transaction implementation.
Imposition of penalty
On 8 June 2026, the National Competition Commission (“NCC”) announced on their website that penalties of VND 820,239,318 and VND 78,575,758 had been imposed on two enterprises for failing to comply with the economic concentration notification requirement. According to the announcement, one enterprise participated in an M&A transaction involving the acquisition of 99.99 percent of the equity in the other enterprise but failed to complete the required economic concentration notification procedure.
Submission of economic concentration notification
By law, enterprises intending to participate in economic concentration are required to submit an economic concentration notification (“EC Notification”) to the NCC prior to carrying out such economic concentration if the transaction falls within the applicable notification thresholds. The EC Notification thresholds are determined based on:
- total assets in the Vietnamese market
- total turnover in the Vietnamese market
- transaction value
- or combined market share in the relevant market
Preliminary assessment for M&A transactions
It is advisable for the enterprises to conduct a preliminary assessment to determine whether the proposed transaction is subject to the EC Notification requirement, prepare the relevant dossiers and complete the required procedures with the NCC and/or other competent authorities in accordance with applicable laws before implementing the transactions. This would help mitigate the risk of administrative penalties and potential impacts on the legality and implementation of the transaction.