VIETNAM - ASEAN
Competition law and policy
--------------------------------------------------------------------Dr. Doan Duy Khuong
Vice Executive President, Vietnam Chamber of Commerce and Industry.
Chairman of ASEAN BAC Vietnam.
1. The World change
5 Cs
Changes
Global Competition
IT Society
Scien. Tech. Progress
Challenges
Chances
Incr.Speed of Change
New Products
New Markets
New Networks
Incr. Competition
Incr. Uncertainty
Cooperation
Competition
2. Vietnam vision 2020




GDP: 180 – 200 billion USD
Population: More than 100
million
Urban population: 50%
Business: More than 2
millions (95%-97% SME)
GDP Structure 2020
10.00%
46.00%
44.00%
Agri., Forestry, Fishery
Services
Industry & Construction
3. Competition and SME in
Vietnam

1.
2.
3.
Contract farming
Agriculture is a main economic sector
1981: household entered into contracts
with cooperatives (collective production
removed)
1986: “open economy” policy introduced
4.
Contract farming is profitable for farmers,
collectives and companies.
5.
Contract farming has opened the new
economic renovation process of Vietnam
of the cooperation and competition
3. Competition and SME in
Vietnam

Moving from the centrally planned
economy to socialist market
economy since 1986

In the open economy, competition
has become a driving force of the
economy

Development of private business
sector and FDI increasing the
competition level as well as
causing unfair competition
3. Competition and SME in
Vietnam

SME in Vietnam: ~ 600.000
companies, and ~ 97% is SME
and they are a backbone of the
economy (GDP, employment &
personal income)

SME: an enterprise having a
registered capital of no more than
10 bn VND or employing on
average no more than 300
employees in a year
3. Competition and SME in
Vietnam

A new competition law has come into effect
since July, 2005. It regulates unhealthy
competitive practices (unethical practices
as falsifying product information, infringing
business secrets, coercing or defaming
another enterprise, using misleading
advertisements and promotions,
discriminating within an industry
association, engaging in illegal multilevel
selling of goods…) and practices in
restraint of competition by all businesses in
Vietnam (practices that reduce, distort or
hinder competition in the market such as
agreements in restraint of competition,
abuse of dominant market position and
monopoly position, and economic
concentrations – M&A…)
4. Competition and ASEAN






ASEAN Economic Community (AEC) by 2015, AEC
Blueprint
ASEAN Summit 2011 “ASEAN Community in the
Global Community of Nations”
ASEAN vision beyond 2015 for broader roles of
ASEAN
Investment, service, transportation and tourism:
ACIA, ATIGA, AFAS, MRAs, ASTP, ATSP
Food, Energy and water security: APAEC, ASEAN
integrated Food Security Framework, ASEAN plus
Three Emergency Rice Reserve (APTERR)
Equitable Economic Development: Initiative for
ASEAN Integration (IAI), Master Plan on SMEs
Development and SMEs Advisory Board (2011)
4. Competition and ASEAN

Macroeconomic
coordination
and
financial cooperation: CMIM (120 bn
USD), ASEAN Plus Three Macro Economic
Regional Surveillance Office (AMRO)

ASEAN connectivity: Master Plan
ASEAN connectivity (MPAC), ABTC

Competition can drive ASEAN forwards.

on
However,
“Unity
in
Diversity”
Development gap; ASEAN survey on
ASEAN’s competitiveness for trade and
investment: SMEs accounts for 96% of
all enterprises in ASEAN and the most
vulnerable; ATIC
5. Conclusion



There is a great deal of work
ahead of us to achieve AEC by
2015. Cooperation and
Competition are driving forces
Competition policy is in need
and can make things change
positively (for all businesses)
Strong political will