The Superintendence of Banking, Insurance and Private Pension Fund Administrators (SBS) published SBS Resolution No. 00511-2023, which approves the procedure to carry out the prior control of concentration operations involving companies of the financial or insurance system, within the framework of Law No. 31112, the law that establishes the prior control of corporate concentration operations, and its regulations.
In brief
On 10 February 2023, the Government of Vietnam issued the new Decree No. 03/2023/NĐ-CP on regulating the functions, duties, powers and organizational structure of the Vietnam Competition Commission (“Decree 03”). Decree 03 will take effect on 1 April 2023.
Key takeaways
Decree 03 provides the following new key regulations:
The official English name of the authority will be the Vietnam Competition Commission (VCC). Meanwhile, the Vietnamese name is “Uy Ban Canh Tranh Quoc Gia”.
The VCC shall take over the role of the Vietnam Competition and Consumer Authority (VCCA) in the state management of competition matters under the Competition Law once Decree 03 comes into effect.
In depth
Since Competition Law No. 23/2018/QH14 (“Competition Law”) was passed back in 2018, the VCC was mandated as the leading authority responsible for the state management of competition matters under the Competition Law. However, there have been no further developments as to the establishment of this authority until recently, nearly four years after the Competition Law came into effect.
Specifically, on 10 February 2023, the Government of Vietnam issued Decree 03.
The VCC’s organizational structure shall consist of 15 officers, including one president and several vice presidents,1 and the headquarters shall be located in Hanoi.2 Within the VCC’s organizational structure will be the following departments:
Competition investigation agency
Secretariats of councils dealing with competition cases
Competition supervision board
Other units established under the VCC to perform the function of state management of competition, protection of consumers’ interests and management of multi-level marketing activities3
Pursuant to Decree 03, the VCC is tasked with handling competition proceedings in accordance with the Competition Law, controlling economic concentration activities, handling requests for exemptions and appeals of settlement decisions of competition cases, and performing the tasks of state management of competition, protection of consumers’ interests and management of multi-level marketing activities as prescribed by law.4
As for the operation of the current authority, the VCCA, pursuant to Decree No. 96/2022/ND-CP on the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade of Vietnam (MOIT), the VCCA will continue to perform its functions and duties in accordance with current legal regulations until the Government stipulates the functions, tasks, powers and organizational structure of the VCC.5 Accordingly, by operation of law, once Decree 03 has taken effect (i.e., 1 April 2023), the VCCA’s functions shall cease.
Decree 03 shall also supersede Decree No. 07/2015/ND-CP dated 16 January 2015 on the functions, tasks, powers and organizational structure of the previous Vietnam Competition Council (i.e., “Hoi Dong Canh Tranh” in Vietnamese), and Decision No. 24/2015/QD-TTg dated 30 June 2015 of the Prime Minister promulgating the regulation on organization and operation of the Vietnam Competition Council.
Under Decree 03, the VCC shall also be edited into relevant provisions under Decree No. 40/2018/ND-CP on the management of multi-level marketing activities, Decree 99/2011/ND-CP detailing and guiding the implementation of a number of articles of the Law on Protection of Consumer Rights, and Decree 54/2020/ND-CP amending and supplementing a number of articles of Decree No. 127/2015/ND-CP on the organization and operation of inspection activities in the industry and trade sector.
The long-awaited arrival of the VCC also means that we can expect to see more enforcement activities by the competition regulators, not only within the area of merger control, but also the enforcement of regulations on anti-competitive agreements and abuse of market dominance.
The full Vietnamese text of Decree 03 can be found here.
1 Article 4, Decree 03.
2 Article 4, Decree 03.
3 Article 5, Decree 03.
4 Article 2, Decree 03.
5 Article 5, Decree No. 96/2022/ND-CP issued by the government on the functions, tasks, powers and organizational structure of the MOIT, dated 29 November 2022.
Download Baker McKenzie’s latest “Doing Business in Mexico” publication, which looks at foreign investment law, competition law, IMMEX, the Maquiladora Program, company law, taxes, international trade, labor law, the environment, intellectual property, and real estate.
On 7 March 2023, the Chair of the Australian Competition and Consumer Commission, Gina Cass-Gottlieb, announced the ACCC’s compliance and enforcement priorities for 2023/24 and the market studies and advocacy work that the ACCC would continue this year. Ms. Cass-Gottlieb identified a range of industry sectors, as well as specific competition and consumer law issues that will be the focus of the ACCC’s compliance and enforcement activities for 2023/24. Many of these areas continue from last year.
The Competition Commission of South Africa has published the Fresh Produce Market Inquiry Terms of Reference, announcing its intention to conduct a market inquiry into the Fresh Produce Market of South Africa. The Commission has identified three broad themes for the inquiry, which will address the impediments to competition and market outcomes: the efficiency of the value chain; the market dynamics of key inputs and its impacts on producers; and the barriers to entry, expansion and participation in the fresh produce market.
On 14 December 2022, the Securities and Exchange Commission proposed four separate rulemakings under the Securities Exchange Act of 1934 that would create a federally defined best execution standard for broker-dealers and overhaul the US equities market structure. If adopted in their current form, these proposals would meaningfully impact market participants and practices. Given the nearly 1,700 pages of combined rules proposals, firms may need to devote significant resources just to digest their potential impact on particular business models. In a series of Client Alerts, baker McKenzie associates attempt to dissect each of these Market Structure Proposals. This Client Alert provides an overview, insights, and key takeaways for the Order Competition Rule Proposal.
In June 2023, amendments to the Competition Act take effect that will allow Canadian employees to sue their employers for conspiratorial conduct. In this video, baker McKenzie Litigation and Competition lawyers reflect on the new buy-side conspiracy causes of action through the lens of a recent Federal Court of Appeal case, consider the expected implications of the new amendments on employers’ class action exposure, and discuss what employers can do to mitigate these new risks.
On 27 January 2023, the Eleventh Circuit Court of Appeals issued its unanimous (3-0) decision in FTC v. Simple Health Plans, LLC, et al., No. 21-13116. This matter stemmed from an individual defendant’s emergency motion to dissolve a preliminary injunction that a district court had issued under Sections 13(b) and 19 of the FTC Act. The district court denied the emergency motion, and the defendant appealed.
On 3 February 2023, the US Department of Justice announced the withdrawal of three antitrust policy statements that allowed certain information exchanges between competitors in healthcare markets. The day before this announcement, Principal Deputy Assistant Attorney General Doha Mekki of DOJ Antitrust Division warned that DOJ would reconsider these outdated policy statements in light of recent changes in the healthcare industry.
The Energy Charter Treaty (ECT) is an investment treaty that enables multilateral cooperation in the energy sector. Fifty-three states are currently contracting parties to the treaty, including countries in Europe, Asia and the Middle East, as well as the European Union. On 18 November 2022, Luxembourg announced its intention to withdraw from the ECT, joining the wave of countries signaling their intention to pull out of the ECT.