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Regulators to revise competition law
Regulatory agencies need to study and analyse initial results of the Competition Law to identify shortcomings and make it more effective, speakers said at a conference in HCM City on Monday.
Dinh Thi My Loan, an expert with EU-Viet Nam Multilateral Trade Assistance Project III, said agencies should also raise awareness of the Competition Law among businesses, public and administrative agencies.
Tran Ngoc Liem, deputy director of the Viet Nam Chamber of Commerce and Industry, said competition motivated economic enterprises to continuously innovate and improve both production and marketing.
"Since the opening up of the economy more than two decades ago, positive outcomes have been accompanied by unhealthy competitive practices among enterprises, threatening the legitimate rights and interests of businesses and consumers," Liem said.
The Competition Law was enacted and came into effect in July 2005 to counter these practices. It is enforced by the Viet Nam Competition Administration Department under the Ministry of Industry and Trade.
Five prohibitions
The law prohibits five broad types of anti-competitive practices. These are: competition restriction agreements, abuse of dominant and monopoly positions, anti-competitive concentration of economic power, acts of unhealthy competition, and anti-competitive behaviour or decisions by officials or State administrative agencies.
Although the law has been in effect for more than four years, not many enterprises understand it well, said Loan, who is also deputy chairwoman and Secretary General of the Viet Nam Retailers Association.
Implementation of the law is expected to face more difficulties and challenges ahead, she said.
Loan added that the country should improve its legislation and enhance human resources at implementing agencies.
Stephanie Yon, another expert with MUTRAP III, said cartels with dubious practices including price fixing, rigging bids and output restrictions, were the biggest enemy of competition.
"Such cartels are cancers in the open market economy that destroy competition, and cause serious harm to the economies and consumers," she said.
Nowadays, there was a trend among other countries to issue new rules and penalties including criminal prosecution of violations of unfair competitive behav-iour. This should be considered a lesson for improving the operation and development of Viet Nam’s competition regulating agencies, Yon said.
The workshop was the first in a series of initiatives designed to raise awareness of anti-competitive practices and ensure effective implementation of the Competition Law in Viet Nam.
It was organised by MUTRAP III and the Viet Nam Chamber of Commerce and Industry.
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