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
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

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. 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

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 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.

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 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

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 Ngô Quyền, Hoàn Kiếm, Hà Nội
Tel: / Fax: