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BUILDING AND ENFORCING COMPETITION LAW AND POLICIES

BUILDING AND ENFORCING COMPETITION LAW AND POLICIES

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BUILDING AND ENFORCING COMPETITION LAW AND POLICIES

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

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

  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 3

  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 4

  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 5

  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 6

  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. 7

  8. 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

  9. 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

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

  11. 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

  12. 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

  13. 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

  14. 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

  15. 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

  16. 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

  17. 4.2 Second phase: enforcement Order/hearing stage Well preparation Relationship with judges/commissioners Advocacy Importance of PR

  18. 4.2 Second phase: enforcement Technical assistance Resident advisor International training workshop Conference/forum Internship Other TA activities

  19. 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)

  20. THANK YOU!