From this situation as well as its urgency and topicality, I decide to carry out my doctoral dissertation on “Improving the competition and business monopoly control policy in Vietnam i
Trang 11 Reasons to choose the topic
Competition is the classic nature of the market economy, is the driving
forces behind the socio-economic development, bringing about numerous
benefits to the customers But monopoly is a form of market structure
which is formed by many different causes and has impacts on the whole
society and prevent competition, etc
In order to maintain competitive environment and overcome the
limitations of monopoly, role of the State through a system of competition
policies and laws on monopoly control is very important and crucial
In recent time, the system of such policies in Vietnam does not
properly reflect laws of movement of the market economy It still contains
patches, inconsistencies, passive responses and follows the “real arising
problems” In particular, in the current context of increasingly deep
globalization and international economic integration, there are still many
problems relating to the current system of competition and monopoly
control policy on Vietnam
From this situation as well as its urgency and topicality, I decide to
carry out my doctoral dissertation on “Improving the competition and
business monopoly control policy in Vietnam in the context of
international economic integration”
2 Purpose of the study
On the basis of synthesis and clearer interpretation of the relationships
between competition and monopoly, between competition policy and
monopoly control one, in which competition and monopoly control law
forms an important part of competition policy In addition, based on the
analysis results and situation assessment as well as reference to experience
drawn from some countries in the world, and changes of the global
environment, I would like to propose the State to amend, supplement and
adjust a number of sanctions and legal regulations in order to improve the
competition and business monopoly control policy in Vietnam From these
issues, I has defined the overall objective of my study is to promote the
State’s role through a system of competition and monopoly control policies
in order to create a fair, equal and efficient business and competitive environment and implement international commitments So, it is necessary
to depend on content and criteria of analysis to review, evaluate the policies, and propose contents which require amendment or supplements in order to improve these policies in Vietnam
From the overall objective, I have defined detailed objectives of my study: (i) Analyze and evaluate policies having direct impacts (through legal institutions and regulations) and policies having indirect impacts (for support or protection) through such policies as tax, anti-dumping, import and export and State credit, etc on competition and monopoly control in order to fulfill the objective of promoting role of the State in creating an environment of free trade, free competition, non-discrimination which is the fundamental principle of competition and (ii) Introduce lessons learned from some countries to Vietnam
In order to achieve the above objectives, following issues are required
to be included in the study:
• What are competition policy and competition law? Their relationship?
• Institution of competition and monopoly control policy? Why is competition law the most basic and important component of the competition policy?
• Fundamental basis and basic content of competition policy and competition law?
• Which criteria are used to analyze and evaluate the competition and monopoly control policy in Vietnam?
• What is the suitable level for State’s intervention for adjusting competition and monopoly control?
• Why is it necessary to form and maintain a fair and efficient competitive environment? What to do? What is the State’s role relating to this issue?
• Why is it necessary to amend and improve the competition and monopoly control policy in the global economy and international economic integration?
Trang 23 Objects and scope of the study
(i) Objects of the study
• The competition policy with the main approach on its important
content and component which is competition and monopoly control law
• In order to achieve the above objective, the object of the study is an
overall analysis and assessment of competition and business monopoly
control policy in Vietnam will real evidences taken from manufacturing
and service sectors The study will approach and consider the issues under
the perspective of competition policies, i.e consider monopolization,
barriers to market entry and exit, economic concentration level, practices in
restraint of competition and unfair competition These are important
content or component of competition policy and competition law My
study uses 5 common criteria and component criteria to analyze and
evaluate the policy, namely (1) Market scope, (2) Restraints in competition
and market entry, (3) Market structure, (4) Current competition institution
and policy, (5) Current competition situation and identification of
anti-competition practices
• Study experience learned from some countries in terms of
competition policy and law Useful lessons for Vietnam
• Some enterprises and economic groups are included and briefly
analyzed in my study as the direct beneficials of competition policy and
law, contributing to the improvement of the policy
(ii) Study scope
• Analyze and evaluate the competition and monopoly control policy
in Vietnam through the 4 basic contents and 5 criteria as presented above
• Analyze and identify the positive factors contributing to competition
promotion and restraints of competition, especially ones arising from
regulations, institutions and policies of the Government
• Evidences taken from 2 manufacturing and service sectors of cement
and petroleum in Vietnam will be included in the study
• Situations, figures and periods included in the study are taken during
4-5 recent years, especially after the international economic integration and
after Vietnam officially became the 150th member of WTO
4 Study method and references
(i) Study method
My dissertation contains following study methods:
- Comparative and statistical analysis method
- Systematic analysis method
- Qualitative and selective inheritance method
- Diagram and graph method (charts)
- Unique study methods of economics: marginal and optimal selection method, positivist and normative method, etc
(ii) Study references
• Documents and policies related to the topic of the study of some countries in the region and all over the world
• Documents and policies on competition and monopoly control in Vietnam such as Competition Law, Bankruptcy Law, Decree No 116/2005/ND-CP, Decree No 120/2005/ND-CP, Decree No
05/2006/ND-CP, Decree No 06/2006/Nð-05/2006/ND-CP, annual reports of VCCI and Competition Management Authority (Ministry of Trade and Industry) and some specialized laws, etc
• Scientific summary records, economic magazines and internet
5 Scientific contributions of the dissertation
(i) General contributions of the dissertation
Contributions of the dissertation are presented in the objectives of the study Following is further interpretation
1 In order to improve the competition and monopoly control policy, it
is necessary to continue renewing awareness and conception about competition and monopoly, about the relationship between the State and market, avoid restraints in competition and fostering monopoly
2 The market economy will operate in accordance with its rules and mechanisms, without any impact on the role of the State The State still plays an important role in creating the environment and regulates the behaviors of the economic agents through legal regulations on competition and monopoly control
3 Reasonably solve the relationship the level of the State’s adjustment between maintaining competition and restraining monopoly, eliminating monopoly There is no presence of monopoly in a competitive environment
Trang 34 Experience of other countries in terms of design, construction,
operation, amendment and supplements of competition policy and law,
monopoly control and anti-monopoly law is useful lesson and reference for
Vietnam
(ii) Specific contributions of the dissertation
1 The dissertation has found out that in the contemporary
economy and globalization which contains the development of the “Digital
economy” and of “flat world” whose key element is establishment of the
global supply chain and changes in the market structure, there are two kinds
of markets: competitive market and non-competitive one The competitive
market consists of for-profit businesses while the non-competitive market
consists of non-profit businesses and ones which are established under the
“Blue Ocean Strategy”
2 The dissertation has analyzed and made some recommendations: in
order to create and maintain a competitive environment, it is required to
control monopoly, implement legal regulations, sanctions and measures of
the competition policy whose most important component is competition law
which is a Code of the State consisting of civil and criminal regulations in
order to prevent anti-competition practices Only by that, the equality,
non-discrimination, free trade and competition are ensured, because they are the
nature as well as the fundamental basis of competition policy and
competition law
3 The competition policy and other economic policies have an
interdependent relationship, “no policy is a separate island” The
interdependent relationship has impact on the economic operation and
competitive environment So, I recommend: it is necessary to carry out a
scientific analysis and assessment of competition policy, including relevant
policies before and after the policy is implemented, in order to ensure its
consistency and efficiency; and also overcome the shortcomings,
overlapping, patches and following of the “real situation” the policies In the
dissertation, I also recommend: improving and adding common criteria,
component criteria and auxiliary criteria which should be used together in
analyzing and evaluating the policy
4 In the current context of global economy, there appear many changes
after the financial and public debt crisis Mergers and Acquisitions (M&A)
in ASEAN and Vietnam have been enjoying a strong development and
growth This is the potential factor leading to an establishment of a market dominance and impact on the competitive environment Therefore, in my dissertation, I recommend controlling the economic concentration through institutions and legal regulations should be the most important component of the competition policy
5 With the new trend of current integration and development, in the dissertation, I recommend: The State should make a change in the direction
of reducing the function of “State doing business” and strengthening
“Welfare State”, “Legitimate State”; implementing and “imposing” competitive market to all enterprises, including SOEs to ensure an fair
“playground” and effectively use all social resources
6 In order to create and maintain the fair competitive environment, in the dissertation, I recommend the State to make a simultaneous application
of both types of policies: the policies of direct impact through institutions and legal regulations, and the ones of indirect impact such as tax, import and export, anti-dumping and credit, etc in order to support or protect the domestic enterprises
7 Based on the experience in construction of model of competition management authorities of some countries, the urgency of real operation in Vietnam, especially settlement of violations of competition law which contains several shortcomings, overlapping, takes long time and have low efficiency, in the dissertation, I recommend: merging 2 current competition authorities (Vietnam Competition Authority and Vietnam Competition Council) into one single competition authority (the National Competition Commission which is under direct management of the Government) which occupies a higher legal position and corresponds to its assigned functions and tasks
6 Structure of the dissertation
In addition to the introduction, conclusion, table of contents, appendices and references, the dissertation consists of 4 chapters:
Chapter 1: Overview of the research Chapter 2: The basic theories on competition and monopoly control policy Chapter 3: Situation of competition – monopoly and adjustment policies in Vietnam
Chapter 4: Viewpoints and solutions for improving the competition and business monopoly policy in Vietnam
Trang 4CHAPTER 1 OVERVIEW OF THE RESEARCH
The chapter 1 consists of 3 parts: (i) research objectives, (ii)
Classification of researches based on forms of publication and (iii) Overall
assessment Here is the basic content:
Overview of the research is the summary, assessment and comparison
of research works relating to the topic of the dissertation so that I could
identify “gaps” and “missing” questions for study Accordingly, I have
classified the research works into 3 main categories: (1) reference books /
monographs, (2) Annual Reports of ministries / sectors, and (3) Summary
reports, magazines, and scientific works
Based on analysis and assessment of above types of works, I have
concluded that: (i) Despite different approaches of works, they share the same
criteria of assessment and show the nature of competition and monopoly; (ii)
the research works contain consistencies between theories and practices,
shortcomings and restraints in competition and monopoly control,
anti-monopoly; (iii) competition law mentions 3 main issues: 1 abuses of market
dominance, 2 competition restriction agreements, and 3 regulation on
control of economic concentration level Position of competition laws in the
competition policy is shown in the following model:
Regulating rules
COMPETITION LAW
Market structure
Policies affecting competition
Socio-economic policies Business’ behaviors
Competition
policy applied to
a specific
sector/market
> Trade and protection
> Trade policy
> Intellectual property
> Consideration for merger
> competition restriction agreements
> Abuse of market
> Protection by the State
> Natural monopoly
> Sensitive industries
I also propose 5 issues for further study:
1 Competition and monopoly control policy should indicate changes
in viewpoints and meeting the specified requirements and objectives; 2
No attention to raising opponent comments to the policy, conducting a scientific analysis and assessment of the policy before and after its implementation; 3 Use of common criteria and component criteria in combination with other relevant factors to analyze and evaluate the policy;
4 Settlement of violations of competition law, and 5 “Characteristic” settlement of monopolies in Vietnam still contains several disputes
CHAPTER 2 BASIC THEORIES ON COMPETITION AND
MONOPOLY CONTROL POLICY
Chapter 2 consists of: (i) Competition and monopoly, (ii) Law on competition and monopoly control, (iii) Role of State Management Authorities in competition and (iv) experience of foreign countries and lessons for Vietnam This chapter presents the following major contents: nature, criteria for competition classification and impact of competition Competition is a classic issue, a property and a rule of the market economy In the contemporary market economy, there are two kinds of markets: there are two kinds of markets: competitive market (consisting of competitive enterprises) and non-competitive one (consisting of enterprises
of public benefits, enterprises of social security and ones formed under the
“Blue Ocean Strategy”) Competition and monopoly have a causal inverse relationship Dispite of causes of its establishment, the monopoly has negative impact on the whole society and customers as well Therefore, Vietnam and many other countries all over the world consider anti-monopoly and anti-monopoly control the most important task of their States The important and effective legal instrument for the State to carry out their task
is competition and monopoly control policy because the competition law is law of anti-monopoly and competition maintenance There will be no
Trang 5presence of monopoly in a competitive environment! In terms of theory, I
have presented 4 main contents and 5 common criteria as well as the
component criteria to analyze and evaluate the competition policy in order
to ensure high consistency, logic and accuracy In terms of organization, the
state management authorities must be organized in an independent,
professional manner They should occupy a high legal position which
corresponds to their function and responsibilities and should be operated
under the direct management of the Government They also should be
provided with sufficient conditions for well operation Lessons learned from
other countries, especially those which share similarities with Vietnam
defined in this chapter are a very useful reference for Vietnam
CHAPTER 3 SITUATION OF COMPETITION – MONOPOLY
AND ADJUSTMENT POLICIES IN VIETNAM
This chapter consists of: (i) situation of competition and monopoly, (ii)
Situation of competition and monopoly control law and (iii) Overall
assessment of competition and monopoly control policy
This chapter primarily aims to provide an overall assessment of real
situation of competition and monopoly; the implementation of the competition
and monopoly control policy after 6 years since the Competition law became
effective (July 1, 205) in Vietnam
The above criteria and content have been used to conduct the analysis
and assessment of the situation Here, I specially base on number of
enterprises (market size), identification of positive factors promoting
competition as well as restraints in competition arising from legal
regulations, institutions and policies made by the Government, economic
concentration level and monopolization, restraints in market entry and exit,
unfair competitive practices, etc., which means a identification and
assessment of direct and indirect impacts of the polity on competition and
monopoly control The policy has direct impacts on competition and
monopoly control through regulations and sanctions of the competition law
Its indirect impacts are indicated through such policies as tax, anti-dumping, import and export and state credit, etc in order to support and protect industries and enterprises in Vietnam
From the above content and issues, I would like to present here my specific assessment (strengths and limitations) in policy implementation as following:
1 Awareness and conception
There is a change in awareness and conception about the operational rules and mechanisms of the market economy and the fundamental principle of competition is non-discrimination, free competition, free trade, free market entry and exit We also see the role of the State through a system of competition policies and laws on monopoly control, as well as enterprises – its beneficials
199.788
112.95
246.451
131.318
305.358
155.771
370.676
205.689
455.207
248.757
544.394
290.767
622.977
0 100 200 300 400 500 600 700
Total number of registered enterprises Total number of operating enterprises under survey of GSO
Source: - General Statistics Office and Agency of business registration
- Vietnam enterprise annual report - VCCI in 2011, page 22
Figure 3.1: Total number of registered enterprises and operating prices
as at December 31 of years from 2005-2011
Total number
of enterprises
Year
Trang 6The figure 3.1 shows that there are a large number of enterprises with
high potentials for competition in the Vietnam market, and accordingly, the
competition among competitors have become increasingly fierce and
aggressive However, from such competition, there happen numerous
unfair competitive practices in the Vietnam market
2
2 Policies of direct impacts
(i) Legal regulations on competition restriction agreements
Although the competition restriction agreements have been specified
in the Competition Law; Decree No 116/2005/ND-CP detailing the
implementation of a number of articles of the Competition Law and Decree
No 120/2005/ND-CP on dealing with breaches in the competition law,
etc., many breaches still appear in the market 3 cases relating to “price
maintenance agreements” in the automobile physical damage insurance
market, roof plate market and student insurance market are typical
examples Relating to the competition restriction agreements, there are
some regulations which are just inflexible principles, do not approach the
anti-competition nature of the case, especially sophisticated ones made by
the enterprises Specifically, Article 9 of the Competition Law is
unreasonable Normally, any agreements on price fixing, market division,
output restriction and auction collusions which always contain
anti-competition should be prohibited and not be exempted But in fact, there is
no regulation on such agreements, leading to many difficulties in
settlement By law, such agreements are prohibited only the combined
market share accounts for 30% or more, but in fact, many cases in which
the combined market share accounts for less than 30% still leads to an
increase in price and price maintenance So, how to settle the situation is
very difficult?
(ii) Legal regulations on unfair competitive practices
Due to inconsistency, patches in the competition mechanism and policy
of Vietnam, the market is still affected and driven by law of value, law of
supply and demand and law of competition Therefore, any unfair
competitive practices have impacts on legal rights of other economic agents and the society Following are some typical examples of unfair competitive practices which have been settled by the Competition Law (from Article 40 to Article 49) Specifically, in 2006: 1 case; 2007: 5 cases; 2008: 13 cases; 2009:
14 cases and 2010: 28 cases In which 46/63 cases have investigation was initiated by the Vietnam Competition Authority and 15/61 cases have investigation based on complaints from enterprises, including 21 cases relating to advertising; 17 ones relating to illegal multi-level sales; 6 cases relating to promotion; 4 ones of misunderstanding instructions; 1 cases relating tobusiness disruptive practices, etc
(iii) Legal regulations on abuse of market dominance and monopoly
In 2009, the Vietnam Competition Authority conducted eight investigations concerning abuse of market dominance/monopoly position,
in which only one was realized in accordance with regulations of competition law Its main reasons are competition authorities, awareness of enterprises and regulations of the Competition Law
A typical example of this behavior is the dispute on fuel price between the Vietnam Air Petrol Company (Vinapco) and Jetstar Airways Pty Ltd
on April 1, 2008 which was settled by the National Competition Council with the final conclusion: Vinapco was fined for more than 3.3 billion VND, but there have been several controversies around the dispute Its direct cause was that the two parties reached no agreement in fuel price Vinapco stopped providing petroleum to Jetstar Pacific, leading to its non-operation, and then Vinapco accused Jetstar Pacific of not paying for petroleum and forcedly stopped its supply of petroleum In addition, there are many other cases relating to movies distribution and showing, telecommunications, electricity, cement and so on
Trang 71.88 2.00
2.25
0
1
2
3
TeTechnology Inf rastructure dev elopment in the
operating sector and area hav ing impact on competition
Deep access and output of the production process
Figure 1/Appendix 2: Natural barriers in the cement industry
(iv) Legal regulations on economic concentration level
According to the Competition Law, the basic content for analysis and
assessment of economic concentration level is enterprise merger,
consolidation, acquisition, joint venture and associations Following is the
real situation of economic concentration in Vietnam in 2005 - 2010
Generally, this operation has been growing in number, value and scale
Figure 3.2 Number and value of M&A in Vietnam
(2003 – 1 st quarter/2012)
Source: Report on Vietnam economic concentration in 2012 – Vietnam
Competition Authority – p.11
1 Low 2: Medium 3: Relatively high
In recent years, some industries have had vibrant M&A operation: industry, energy, finance and banking, materials, consumer goods and fast moving consumer goods, etc
Table 3.1 Industry-based M&A in Vietnam in 2011
shares
Majority
Financial Services 1,588 72 197 1,391 779 808
Construction and materials 236 28 71 165 236 0 Personal and household goods 226 14 12 214 226 0
Industrial goods and services 29 28 25 3 29 0
Source: Report on Vietnam economic concentration in 2012 – Vietnam
Competition Authority – p.13
Together with M&A, in Vietnam, there are many companies announcing or advertising their large market share of their products However, there are still many limitations in Competition law in economic concentration: no mentioning of economic concentration control in both vertical and mixing directions; no regulation to empower the Vietnam Competition Authority to build the verification content, inform and exemptions
of economic concentration and no economic concentration control regulations;
no regulation on combination of economic concentration control procedure and procedure of state management over business and investment registration; no regulation on combination between the control authority and State management authority over the economic concentration, etc
Trang 83 Policies of indirect impacts
The policies have indirect impacts in order to support or protect the
implementation of the competition and monopoly control policy, ensure
and maintain the fair and equal competitive and business environment
They include: price and output regulating policy; SOE adjustment and
restructuring policy; tax and anti-dumping policy; import and export policy
and state credit policy, etc These are macro policies which have positive
impacts and significant contributions to implementation of the competition
and monopoly control law to stabilize the market, maintain competition
and continually improve the quality, performance as well as
competitiveness of enterprises and the whole economy as well
Table 3.2 Percentage of real and nominal protection of exportable
goods under impact of integration commitments (%)
Agriculture,
aquaculture
Mining, combustible gas Manufacturing Average Year
Real Nominal Real Nominal Real Nominal Real Nominal
2001 7.43 6.28 16.39 8.91 95.97 25.28 58.46 17.92
2003 12.52 11.06 -0.03 3.55 43.94 29.23 24.87 18.20
2015 3.51 3.25 -0.29 0.17 21.14 10.65 10.57 5.64
2020 3.36 3.11 -0.32 0.13 20.76 10.30 10.34 5.43
Source: [43 p.102]
Table 3.3 Percentage of real support of some key exports of Vietnam (%)
2005 2006 2007 2008 2009 2010 2015 2020
Garments 134.19 135.70 58.02 58.44 57.72 57.48 58.26 57.83
Leather Products 100.75 95.57 102.80 91.75 80.91 73.60 52.58 53.09
Plastic products - 59.47 59.10 53.40 47.55 42.49 25.93 25.45
Processed seafood 50.37 42.51 40.73 33.77 28.66 23.52 15.84 16.17
Source: [43.p.105]
4 Overall assessment of the situation
(i) Strengths
The initial success of Vietnam is that it has already had its own competition law (2005) - an important component of competition policy
It is a legal instrument to regulate competition and control monopoly, containing the following contents:
• Confirmation of persistent existence of the multi-sector commodity economy operating under market mechanism
• Free trade and investment, free competition and non-discrimination
• All economic agents are equal to law
• Acceptance of legal profitability of the enterprise
• Respect of interests of the State, public interests, legal rights and interests of others
• Competition law is the law of monopoly control, anti-monopoly and competition maintenance All unfair competitive practices such as speculation, dumping, disparaging, preventions, engagement, bribing, threatening, labeling violations and intellectual property rights are prohibited
To control the abuse of market dominance and monopoly position; control the practices in economic concentration to make profit, prevent competition and have negative impacts on the market
* Legal regulations on a number of business sectors:
• Production and trade in counterfeit goods
• False advertising or advertisement containing any comparison which has negative impacts on others
• Violations of industrial property rights, intellectual property rights
• Settlement of restraints in competition in securities and securities market
• Bidding regulations and prohibition of negative collusion in
Trang 9bidding
(ii) Limitations
* In terms of mechanism of application of law:
• There are still shortcomings in a number of legal factors and
institutions; some patches, overlapping, incompletion, inconsistencies,
shortcomings in general and following the “real situation” still contained in
the framework law and laws of each ministry/sector (law on enterprise,
investment law, law on import and export, Law on finance – banking,
bankruptcy law, etc.) Settlement of some cases in the market is still
passive and is just for the situation, not a general settlement
• Impact of the competitive environment always consists of two
sides: positive and negative Many enterprises still exist, but many others
become bankrupt There are still many missing issues in the Bankruptcy
Law concerning to procedure as well as issues to be settled, especially
those relating to the employees, finance, society, environment, method and
authority of settlement; rights and liabilities of enterprises, intervention and
authority of state agencies Some SOEs which make losses and are on the
edge of bankruptcy hardly apply the regulations on bankruptcy, but often
change their business forms in which the most popular are merger, joint
venture, associate with other enterprises of the same ministry or sector
While if the private enterprises fall into the same situation, there is no way
for them rather than bankruptcy This is also an illustration of monopoly
power [74]
• Legal violations are settled against their nature in accordance with
the legal regulation of each law without being fully based on their purpose
of unfair competition Therefore, only practices which are defined illegal
get sanctioned, leading to an omission of unfair competitive practices due
to a lack of legal basis for settlement Or if such unfair competitive
practices are detected, they only get a simple administrative sanction,
lacking educability and deterrence
• The monopoly management and control mechanism is mainly done through such policies of tax, price and output control But in our current context, there is no tax policy to apply to monopolistic enterprises and monopolistic products Monopolistic price control is heavily administrative with numerous inappropriate contents which should be added and improved The fundamental basis for increasing price is production cost, but it is not clearly and transparently interpreted, resulting in a low persuasion
As regulated, for monopolistic goods and services, the State must take control and regulation over their prices, not all “losses” are allowed to require an increase in price Of course, during recent time, the State has implemented the limited monopoly pricing policy in such industries of cement, petroleum, etc In economics perspective, they are not goods of pure monopoly (complete monopoly) During their production and trade, such goods still contain many competitive elements, despite their very weak competitiveness
Thus, purpose of monopoly price control is to regulate monopolistic enterprises, ensure social justice But the control is not really effective
• There is no specific and clear legal regulation to adjust and settle restraints in competition and monopoly control Therefore, it is difficult to define the specific results of law application
• Some regulation indicates an excessive concern and intervention of the public authorities in business, operation and management of enterprises
• The countries also have many forms of ownership, many economic sectors (including state ownership), but the difference in their business legal framework is not as big as in Vietnam
* Regarding shortcomings in implementation of laws and settlement
of violations
• The current settlement and investigation on responsibility of producers and salespersons of counterfeit goods All of consequences of
Trang 10producing and selling counterfeit goods have not been completely solved
• There is no legal regulation to protect the owners of goods
which are made counterfeit and customers of counterfeit goods
• Almost copyright infringements and advertising violations are
settled at the simple administrative management level, lacking educability
and deterrence
• Business monopoly control is mainly done through the price
control policy and mechanism Currently, there is no complete tax policy
applicable to monopolistic enterprises and monopolistic goods The price
control mechanism is just for administrative management and inefficient
• Settlement of violations faces many difficulties, partially
because of some certain shortcomings and limitations in legal regulations
on competition and monopoly control, partially because the current
function, power and legal position of the State competition agencies
(Competition Council and Vietnam Competition Authority) does not
correspond to their assigned tasks, they lack fund for their operation while
their operation lacks professionalism
CHAPTER 4: VIEWPOINTS AND SOLUTIONS FOR IMPROVING THE COMPETITION AND MONOPOLY CONTROL POLICY IN
VIETNAM
Chapter 3 consists of: (i) Economic integration and arising issues for improving the policy, (ii) Viewpoints for improving the policy and (iii) Solutions for improving the policy
Following is the basic content:
From brief introduction of the context of the global economy as well
as economy of Vietnam, the trend of globalization and international economic integration as well as its impact on the Vietnam economy in terms of: advantages – disadvantages, opportunities – challenges, positive – negative, etc Based on the content of chapter 2 and 3, I would like to propose some issues to improve the competition and monopoly control policy as following:
• In the context of international economic integration, the greatest pressure for Vietnam is a competitive environment at all levels: nation, enterprise and product, followed by pressure of cost reduction and localization (high adaptability in local market) Vietnamese enterprises will enter an unequal competition with foreign invested enterprises which have strong economic potentials and great experience in the market
• In the context of integration and globalization, the competition law and policy as well as the monopoly control law of Vietnam must comply with the international law The advantages and disadvantages of business and competition must be carefully considered and studies in the global scope and environment, in the value chain, ensure benefits of ourselves as well as of the whole society
• The competition law is the anti-monopoly and competition maintenance Act So, any violations of the competition law should be treated with strict penalties (administrative fines, civil or criminal punishments)
Also, in the chapter 4, I have presented 5 viewpoints and 5 solution groups to improve the competition and monopoly control policy, namely: