COMPETITION – AN EFFECTIVE TOOL
PROMOTING ECONOMIC EFFICIENCIES
Mr. Trịnh Anh Tuấn
Deputy Director General
Vietnam Competition Authority
Hanoi, August 2014
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CONTENT
I/ COMPETITION – A DRIVING FORCE FOR THE
ECONOMIC DEVELOPMENT
II/ ANALYSIS ON THE EFFECTIVENESS OF
COMPETITION IN 3 PARTICULAR MARKETS
 MOBILE COMMUNICATIONS
 PAY TV
AVIATION FUEL
III/ CONCLUSION AND RECOMMENDATIONS
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I. COMPETITION – A DRIVING FORCE FOR THE
ECONOMIC DEVELOPMENT


Creation of a competition
environment
“There is no growth
without competition
policy” - Kazuhiko
Takeshima – Former JFTC
Chairman
“The heart of our national
economy long has been
faith in the value of
competition”
– US Supreme Court
Enterprises
growth
Consumer
welfare
Economic
effectiveness
increased
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MOBILE COMMUNICATIONS
• Communications industry has its own market entry barriers,
including the legal barrier and natural barrier
• The market concentration level is relatively high
MOBILE COMMUNICATIONS
• In 1993, there was only one company providing the mobile
communication services (Mobiphone) at the rate of
0,15USD/minute in Vietnam
• After Vinaphone entering the market in 1996, and Viettel in
2003, the rate was 0,065USD/minute, the method to calculate
the rate also changed (block 6s+1)…
• Up to now, quality and price for the mobile communications
services are more competitive, hence creating more choices for
consumers (more new mobile applications: viber, zalo, …) 5
Market share of enterprises providing
mobile communications in December 2013
Source: Communications
Department of Vietnam
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PAY TV
• Appeared in Vietnam 20 years ago
• Initially, there were several services providers (VTV,
SCTV,…) of television cable with limited channels,
broadcasting quality was not stable
• June 2014:
- 34 enterprises provided Pay TV services
- 4 main types: cable, satellite, landline and mobile.
- 105 local and international registered channels
- Private sector participation: K+ and AVG
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Market share of enterprises providing Pay TV
services in the first 6 months in 2014
Source: Authority of broadcasting and electronic
information
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Viettel, VNPT and FPT entering
the market in 2014
• Since 1/3/2014, Viettel provided the pilot HD package in
several regions with the charge of 85.000 VND/month,
which is equivalent to 2/3 of VTVCab rate and half of HD
services supplied by VTVCab
• In 2011, VTVCab increased the charge from 65.000
VND/month to 110.000 VND/month.
However, VTVCab at the moment is struggling to compete for
more customers by promotion programs.
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AVIATION FUEL
• Prior to 2008: Vinapco is the only enterprise in the market
providing aviation fuel => Vinapco unilaterally stopped
supplying fuel for Jetstar Pacific in April 2008
• Petrolimex entered the market
• Currently Petrolimex has 10% market share and Vinapco
accounts for 80% market share in the aviation fuel market
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III. CONCLUSION
+ Role of Competition
Consumers
Enterprises
• Have more
consumption choices;
• Technology
innovation;
• Buy products of
better price and
quality
• Increase benefits for
the community
• Increase quality of
product/services;
• Decrease
manufacture costs
Government
• Enhance the
transparency to
attract investment
• Optimize the usage
of resources
• Promote economic
growth
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III. RECOMMENDATIONS
The promulgation of new policies must ensure the
competition principles
 The creation and maintenance of a competition environment
must go in line with effective enforcement of competition law
A strong competition authority
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THANK YOU VERY MUCH
Contact: Vietnam Competition Authority
Address: 25 Ngô Quyền, Hoàn Kiếm, Hà Nội
Tel: 04-22205002 / Fax: 04-22205003
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