The Consumer Problem and
the Protection of consumers
in Vietnam
By DO GIA PHAN
Vietnam Standard and
Consumers Association
(VINASTAS)
7/16/2016
The consumer problems and protection in
VIetnam
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Characteristics of the Vietnamese
market and Vietnamese Consumer
• Before 1986 - Centralized planning system
– State monopoly
– Almost no market transaction
– No concept of Consumer.
• After 1986 - Market system
– Step by step decentralized
– Market more boiling
– People’s living standard improved
Characteristics of the Vietnamese
market and Vietnamese Consumer
• Up to now:
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State monopoly remains in many sectors
Little choice for consumer
Insufficient and weak enforcement of legislation, regulations
Lack of consumer awareness
Fake and imitated goods increasing
Low quality goods
Misleading advertising
• Consumer problems - Consumer protection
Characteristics of the Vietnamese
Consumer
• Low purchase capacity.
• Lack of real information on goods and services
leads to false decision.
• Low level of consumption knowledge and skill
leads to inadequate choice.
• Not fully aware of consumer’s rights and
responsibitities (hesitate to engage in struggle
against unfair practices, don’t know how to do in
case of loss).
Consumer related legislation
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Vietnam 1992 Constitution (1992).
Civil Code (1995).
Penal Code (1999).
Commerce Law (1997, amended 2005).
Competition Law (2005).
Ordinance On Consumer Protection (1999).
Ordinance On Quality (1999).
Ordinance On Measuring (1999).
Ordinance On Advertisement (2001).
Ordinance On Pricing (2002).
Ordinance On Food Safety and Hygiene (2003)
Consumer Protection
– Ordinance on Consumer Protection
Approved and promulgated in 1999
• Rights of Consumer.
• Responsibility of all the society.
• Only general principles.
– Competition Law.
• Took effect from 1 July 2005.
• Regulates anti-competition practices to protect consumer.
– State management of consumer affairs
• 2001-2004 assigned to MOSTE
• 2004 - assigned to MOT (Competition Administration).
Consumer organizations in
Vietnam
– VINASTAS founded in 1988, voluntary, not-for-profit,
no subsidiary from the government, allsided consumer
protection activities carried out throughout the country.
– 26 consumer organizations in provinces and cities
– Subordinated organizations of VINASTAS:
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Quality Club
Club of Women Consumers
Anti fake goods Club
Newsmen Club
The magazine The Consumer
Consumer Complaint Bureau
Symbol of VINASTAS
• Opened Eye :
Lucidity and
Vigilance of
Consumer
• Spiral: Consumer
Movement
Development
• Q: Quality
• Sine wave:
Science and
Technique Basis.
Consumer Protection main activities
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Drafting the Ordinance on Consumer Protection
Promotion of the 8 rights of Consumer
Engaging in consumer related policies making
Consumer education
Consumer Information
Campaigns against low quality goods, fake goods and smuggled
goods
• Complaint handling.
• Expansion of local consumer organizations
• Cooperation with local and foreign organizations on consumer
issues
Consumer Information and Education
• Main contents:
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8 rights of consumer
Awareness of consumer position
Concern in the protection of consumer
To become intelligent and skillful consumer
Responsibility to the society
Self defend of consumer interests.
Consumer Information and Education
• Main vehicles
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Mass media
The magazine The Consumer
Seminars and workshops
Training courses (how to strengthen consumer
movement, tobacco control, energy conservation…)
• Informational, educational Fairs and Exhibitions
(organized every year)
• Mutual education in Clubs
• Publications, Brochures, stickers...
Consumer Representation
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Represent in policy, law making process
Comment to legal papers
Contribution to pricing (Post, benzene, electricity…)
Testing of consumer goods (benzene, electric wire,
foods..., using outside or corporate labs)
• Consumer complaint handling
– Consumer complaint bureau
– Conciliatory mediation
– No small court
Surveys and Projects
• Surveys
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What do consumer needs?
Tobacco smoking
Energy consumption and conservation...
Goods labeling
• Projects
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Measures to protect consumer in Vietnam
Protect consumer in Electronic commerce
Energy conservation among consumer
Energy efficiency standard and labeling
Tobacco control
Street foods hygiene and safety
Quality management...
Women Consumers Club
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Founded in 1998
No subsidiary from outside
Women, the main group of consumers
Involved 800 members (in Hanoi)
Meets every 2 months
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Nutrition
Breast feeding
Foods Hygiene and Safety
Gynecological diseases
Dressing
Fashion…
• Some Women consumer clubs established in provinces and
cities
Quality club
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Founded in 1993 (12 years)
How to make better quality for consumers.
Quality management systems.
Involves 80 experts and businesses
Cost covered by members
Meets every month (More than 130 meetings)
– Education on Quality Management (ISO 9000, TQM,
HACCP…)
– Information and training.
Club of Newsmen for the Protection
of Consumer
• Efficient Tool for consumer education and
information
• Meeting every 3-4 months
– Exchange of Important issues on the protection
of consumers
– Informed on consumer protection activities
– Campaigns for the interests of consumers
– Inform and educate consumers.
Anti fake goods Club
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Founded in 2000.
Involved 40 enterprises and experts.
Meeting every 2 months.
Alliance to struggle against production and distribution
of imitated and fake goods, to protect consumers and
fair enterprises.
• Education and promotion of industrial property,
development of trade mark.
• Exchange of experiences and knowledge..
Consumers Complaint bureau
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Established in 1994 by VINASTAS.
Handle consumers complaints.
Mainly settle by concilliatory mediation.
No subsidiary from the government.
No complaint fee collected.
About 500 complaints setled every year (from
automobile to candies).
• Many consumers ccomplaint bureaus in provinces and
cities.
The magazine The Consumer
• First number issued in 1991.
• 48 page, issued 2 times every month (half monthly) in
Vietnamese.
• Foster consumer awareness on their rights and
reponsibilities.
• Give guidances to consumers on goods and services.
• Struggle against unfair trade practices.
• Self-financed, no subsidiary from the government.
Cooperation with other organizations
• Constant relation with government related organizations (competition,
market management, food hygiene and safety, laboratories…)
• With Mass organizations
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Youth association
Labor Confederation
Women Union
Farmers Association…
• With foreign organizations having common concerns:
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Consumer Protection
Tobacco control
Energy conservation
Standard and Quality
Environment...
Main constraints for consumer
protection
• Lack of comprehensive legislation on consumer
protection (only general principles mentioned in the consumer protection
ordinance, lack of concrete regulations specified for consumer protection).
• The consumer problem is not much concerned.
• Lack of powerful and specific facilities for consumer
information and education (The association magazine The
Consumer issued half monthly has no resources to implement its task, no
comparative testing lab...)
Main constraints for consumer
protection (cont’d)
• No resources for consumer protection activities.
– No financial aid from the government (As regulated
for NGOs). Budget mainly depends on projects that
are of irregular basis. The association cannot
implement its planned activities.
– Activists are almost volunteers (mainly retreated
persons who pay not much concern on their
earnings...)
Main constraints for consumer
protection (cont’d)
• No power delegated for consumers organizations
(settling consumers complaints, dealing with unfair
practices...).
• No comparative testing facilities for consumer goods.
• Poor experience in consumer protection (no consumer
protection activities in Vietnam so far).
• Difficult to access poor, marginalized consummers in
rural and remote areas (lack of ressources).
Challenges and opportunities
(In the Background Of Regional and
International integration – Globalization)
Challenges
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Increase the gap between the rich and the poor.
Trade before consumer’s interests.
Transnational corporation – Monopoly.
Growth not in line with development.
Environment degradation.
Consumer’s rights violated.
Challenges and opportunities
(In the Process Of Regional and International
integration – Globalization)
• Opportunities of Consumers
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Living standard improved.
Approach new, modern commodities, services.
More chance to choose.
Competitive price.
More international assistance and cooperation.
Lesson learned
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Responsibility of the government must be affirmed by law.
Responsibility of the society must be stressed
Consumer movement must be developed
Consumer information and education is essential
Promotion of the 8 rights of consumer
Fair competition - Control monopoly
Consumer complaints handling is necessary
Prevention is better than cure
Thank you for listening!