1 / 13

Mr. Trịnh Anh Tuấn Deputy Director General Vietnam Competition Authority

COMPETITION – AN EFFECTIVE TOOL PROMOTING ECONOMIC EFFICIENCIES. Mr. Trịnh Anh Tuấn Deputy Director General Vietnam Competition Authority. Hanoi, August 2014. CONTENT. I/ COMPETITION – A DRIVING FORCE FOR THE ECONOMIC DEVELOPMENT

howie
Download Presentation

Mr. Trịnh Anh Tuấn Deputy Director General Vietnam Competition Authority

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. COMPETITION – AN EFFECTIVE TOOL PROMOTING ECONOMIC EFFICIENCIES Mr. Trịnh Anh Tuấn Deputy Director General Vietnam Competition Authority Hanoi, August 2014

  2. 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

  3. 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

  4. MOBILE COMMUNICATIONS • Communications industry has its own market entry barriers, including the legal barrier and natural barrier • The market concentration level is relatively high

  5. 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, …)

  6. Market share of enterprises providing mobile communications in December 2013 Source: Communications Department of Vietnam

  7. 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

  8. Market share of enterprises providing Pay TV services in the first 6 months in 2014 Source: Authority of broadcasting and electronic information

  9. 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 to110.000 VND/month. However, VTVCab at the moment is struggling to compete for more customers by promotion programs.

  10. 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

  11. III. CONCLUSION + Role of Competition

  12. 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

  13. THANK YOU VERY MUCH Contact: Vietnam Competition Authority Address: 25 NgôQuyền, HoànKiếm, Hà Nội Tel: 04-22205002 / Fax: 04-22205003

More Related