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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

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Mr. Trịnh Anh Tuấn Deputy Director General Vietnam Competition Authority

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  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

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