Asia Pacific Competition Highlights – Vietnam

VCCA points abstract report on financial focus actions in Vietnam’s actual property sector in 2021

This previous quarter, the Vietnam Competitors and Client Authority (the “VCCA”) has reported 23 financial focus notifications obtained and addressed, a number of of which concerned transactions inside the actual property sector.

Actual property is without doubt one of the sectors with essentially the most merger management notifications in 2021. The VCCA reported that 14 merger management notifications associated to the actual property sector (together with residential and non-residential actual property transactions) have been reviewed. Regardless of the issues over the 4th wave of Covid-19 in Vietnam, M&A actions in the actual property sector in 2021 remained vigorous. In 2020-2021, the whole scale of actual property transactions in Vietnam elevated considerably (a rise of over 800 hectares over the earlier 12 months).

M&A actions in the actual property sector is anticipated to proceed to be very lively. Given the numerous impression of the actual property sector on the economic system, the VCCA is anticipated to carefully monitor and proceed to actively present help and steering companies and particularly these in the actual property companies on compliance with the Competitors Legislation.

VCCA releases competitors report on the auto manufacturing industry

The VCCA, in cooperation with, the Japan Worldwide Cooperation Company (the “JICA”), has launched a report on competitors within the Vietnam auto business.

The report, which was issued on December 12, 2021, focuses on the competitors circumstances within the auto manufacturing business in Vietnam through the interval from 2014 to 2019. The report identifies three segments of the auto manufacturing business: manufacture of cars with lower than 9 seats, manufacture of coaches/buses, and manufacture of vans.

On the subject of competitors within the phase of cars with lower than 9 seats manufacturing, the report states that there are few enterprises with ample capability to compete on this market, given the excessive limitations to market entry and the big quantity funding capital required to compete. Moreover, many producers had diminished manufacturing actions as a result of impression of tax and different implications below free commerce agreements. Accordingly, with the present excessive stage of focus, it’s straightforward for market gamers to interact in anti-competitive behaviors.

On the subject of competitors within the phase of coaches/buses manufacturing, the report states that there will not be many firms taking part on this phase and that market share is especially concentrated in a couple of enterprises. The focus ratio (CR) and Herfindahl-Hirsschman Index (HHI) on this phase from 2014 to 2019 exceeded 1,800. In keeping with the VCCA, this means that the focus stage inside this phase could be very excessive. It thought of that the potential of anti-competitive behaviours happening can be very excessive; and that the probability of latest enterprises getting into the market could be very low.

On the subject of competitors out there of vans manufacturing, the report additionally states that this phase is very concentrated with only a few individuals. The CR index and the HHI index from 2014 to 2019 have been above 2,500, indicating excessive market focus.

VCCA releases competitors report on the pork business

The VCCA additionally launched a report on buying and selling, distribution, provide, wholesale, and retail of pork merchandise in Vietnam.

On December 27, 2021 the VCCA, once more in cooperation with JICA, reported on the competitors circumstances within the fields of buying and selling, distribution, provide and wholesale and retail of pork merchandise in Vietnam.

Throughout late 2019 and the primary half of 2020, the pork business in Vietnam skilled uncommon value fluctuations affecting home shoppers. Accordingly, the VCCA and the JICA carried out a examine and ready this report back to proceed to assessment and monitor the pork manufacturing and buying and selling phase. The next factors have been highlighted within the report:

1. Throughout late 2019 and the primary half of 2020, the worth of pork merchandise elevated sharply by 100% – 150% in comparison with the identical interval in earlier years.
2. In 2018 – 2020, the quantity and import and export turnover of pork merchandise didn’t fluctuate to any notable extent. The one noticeable fluctuation got here on the finish of 2020 when quantity and turnover elevated after the African Swine Fever subsided.
3. The primary distribution and consumption channel of pork merchandise is in conventional markets (practically 80%), particularly in areas rural areas. Distribution and consumption of pork merchandise supermarkets and chain shops account for lower than 15% in Vietnam.
4. There’s numerous slaughterhouses in Vietnam. By way of market share, no enterprise or group has a dominant place on this phase, the place the enterprise with the biggest variety of slaughterhouses having solely 7% share.
5. The report signifies that the extent of market focus within the port import phase is low through the interval of 2018 to 2020, with just one enterprise having a 30% market share in 2020 primarily based on import turnover.