Assessment of positive effects of economic concentration is one of the matters of Official assessment of economic concentration (Article 37 of Competition law).
According to the provisions of Article 32 of the Competition Law, The National Competition Commission shall assess positive effects of economic concentration based on one of the following factors or a combination of factors:
a) Positive effects on the development of the sector, domain, science and technology in accordance with the state’s strategies and planning;
b) Positive effects on the development of small and medium-sized enterprises;
c) Increase of the competitiveness of Vietnamese enterprises on the international market.
According to the provisions of Article 16 of Decree 35/2020, Subject matters of the assessment of positive effects of the economic concentration regime
The National Competition Commission shall assess positive effects of the economic concentration regime, based on a single factor or a combination of factors as follows:
1. Positive effects on development of industries, sectors, sciences and technologies according to the state strategies or planning schemes. This shall be assessed based on the following aspects:
a) Capability of promoting the economic efficiency owing to the size and resources of localities, industries, sectors and the entire society which may result from implementation of the economic concentration regime. This must be conformable to objectives defined in strategies and planning schemes for development of sectors and industries which are approved by the Government or the Prime Minister;
b) Level of application of scientific and technological advances to enterprises after economic concentration to improve productivity, quality and business efficiency in order to reduce costs, improve product or service quality or serve interests of consumers and the community.
2. Positive effects on development of small and medium-sized enterprises. This shall be assessed based on the evaluation of opportunities and favorable conditions of small and medium-sized enterprises for entry or expansion of their market or their participation in the chain of production and network for distribution of goods and services, which are likely to be brought about by implementation of the economic concentration regime
3. Improvement of competitiveness of Vietnamese enterprises in the international market. This shall be assessed based on the positive consequences of the economic concentration carried out through the expansion of their domestic product or service manufacturing, consumption and export after completion of the economic concentration process
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