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Published byDale Young Modified over 9 years ago
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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
Enterprises growth Consumer welfare Economic effectiveness increased 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
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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
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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, …)
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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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Source: Authority of broadcasting and electronic information
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 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 VND/month to 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 Government
Have more consumption choices; Buy products of better price and quality Increase benefits for the community Enterprises Technology innovation; Increase quality of product/services; Decrease manufacture costs Government Enhance the transparency to attract investment Optimize the usage of resources Promote economic growth + Role of Competition
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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: / Fax:
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