BUILDING AND ENFORCING COMPETITION LAW AND POLICIES Cao Xuan Quang – VIETNAM COMPETITION AUTHORITY EXPERIENCES FROM VIETNAM Viewpoints in this presentation do not necessarily express those of the VCA Bali - Indonesia (November – 2011)

CONTENTS 1. VIETNAM COMPETITION LAW 2. VIETNAM COMPETITION AUTHORITY 4. EXPERIENCE ON ENFORCING LAW 3. EXPERIENCE ON BUILDING LAW AND AGENCY

3 1. Vietnam Competition Law  Approved on 03 December 2004  Come into force on 01 July 2005  15 drafts during 4 years  3 implementing decrees on enforcement guidance  2 implementing decrees on competition authorities  A number of detail guidelines

4 1. Vietnam Competition Law  Coverages:  Anticompetitive acts: addressing pure competition Horizental agreements (Cartels) Vertical agreements Abuse of dominances Economic concentration (M&As)  Unfair competition acts: addressing individual unfair trade practices Misleading acts MLM etc

5 2. Vietnam Competition Authority (VCA)  Established in early 2004  Officially recognized in Jan 2006  Under the Ministry of Industry and Trade (MoIT)  VCAD Leader (i.e. Director General): appointed by the PM  Budget: allocated by the Govt

6 2. Vietnam Competition Authority  Duties and Responsibilities:  Competition: Anticompetitive acts: investigating and sumitting the investigation report to the Competition Council (VCC) for making decisions Unfair competition acts: investigating and making decisions  Consumer protection: drafting and enforcing the law and policy  Trade remedies: handling antidumping, safeguard and countervailing duty

7 2. Vietnam Competition Authority  Organization:  Investigation units: 2 boards on anticompetitive and unfair competition  Supporting units: 3 boards on policy, interntional affairs and general admin.  Centers: 2 centers for information and data and for training  Other units: 2 boards on consumer and trade remedies  Branches: 2 branches in Hochiminh city and Danang city.

3. Experience On building national Competition Law  Importance of international experience  International Guidelines (like EU, OECD, ICN, RG, etc.) should be referred  Procedure and due course to handle case  Investigators’ powers must be ensured  Roles of detail guidelines

3. Experience On setting up national Competition Authority  Independence are prerequisite condition  Human resource  Over workload may reduce efficiency  Competition authority should be given enough space for decisions

4. Experience on enforcing the Law  First phase: preparation  Second phase: enforcement  Third phase: review and revise (if necessary)

4.1 First phase: preparation  Enhancing political will and public supports  Play the main role in drafting competition policies and concerned regulations  Advocacy for benefit of the Competition Law  Actively discover cases and handle appropriately  Strengthen international cooperation and participate at international forum/conference

4.1 First phase: preparation  Strengthening human resources  Training for investigators: Background on economist, law and finance, etc. Investigation skills and techniques (conceiving testimonies, market study, collecting evidences….). Practical experiences on investigation Morality.  Training competition knowledge for judges and competition council members  Training and developing collaborators

4.1 First phase: preparation  Establishing coordination with stakeholders  Coordinate with business sector, the public and consumers  Coordinate with industry regulators  Coordinate with the press and public communication  Coordinate with other State agencies

4.1 First phase: preparation  Setting up Information Center and Database resources  Build up database on market structure in several key industries  Set up and develop database center/resources for updating information  Develop software on information searching, control and sharing inner and outer of the agency

4.2 Second phase: enforcement  Roles of human resource  Balance between lawyer and economist  Investigators should only focus on handling cases  Sufficient benefit to ensure no corruption  Training and training

4.2 Second phase: enforcement  Investigation stage  Coordination with Industry regulators  Local governmental agencies  Source of information/data From the complainant From the press Survey Studies/researches Other government agencies

4.2 Second phase: enforcement  Order/hearing stage  Well preparation  Relationship with judges/commissioners  Advocacy  Importance of PR

4.2 Second phase: enforcement  Technical assistance  Resident advisor  International training workshop  Conference/forum  Internship  Other TA activities

4.3 Third phase: review and revise  Why need to be reviewed  No law perfect at the first time  Change of conditions  Process of review  When to review?  What to be reviewed?  Who make review?  Revision (if necessary)

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