Wednesday, December 13 2017

VietNamNews

Tighter laws on competition urged

Update: December, 13/2012 - 10:01

 

Medicine is packed at Phu Yen Material and Pharmacy Company in the south central province of Phu Yen. Pharmaceuticals are among 10 key sectors included in the Competition Assessment Report released yesterday. — VNA/VNS Photo Duong Ngoc
HA NOI (VNS)— More detailed regulations could help Viet Nam control anti-competitive practices, claims a report compiled by the Viet Nam Competition Authority (VCA).

After assessing the competitiveness of the ten major sectors in Viet Nam's economy, the organisation released this report yesterday, which includes an overview of the market, a list of the barriers to joining or promoting the market and the competitive status of the five manufacturing sectors and five service sectors.

These sectors include medicine distribution, life insurance, advertising and vegetable oil production.

According to the report, the four manufacturing sectors (except paper production) have a high concentration ratio, which may lead companies in these sectors to abuse their dominant positions and promote anti-competitive strategies, said Tran Phuong Lan, head of VCA's Competition Supervision and Management Department.

However, Lan said, not many anti-competitive practices have been uncovered in the five surveyed manufacturing sectors.

In fact, the sectors face tougher competition, Lan said, citing high inventories in paper and building glass production and competition between domestic products and imported ones.

"The main anti-competitive practice is falsely advertising," she said.

Tran Hung, General Secretary of the Viet Nam Advertising Association, said that more legal documents should be written explaining the Law on Advertising and related decrees, which he said were too general and led to confusion for management bodies and enterprises.

"We need legal documents that define clearly what counts as false advertising," he said.

Hung said that his association was in the process of drafting a professional ethics code that would help enterprises compete properly.

VCA Director Bach Van Mung said that the report would hopefully raise awareness about competition-related policies and regulations and build a healthy competitive business environment.

The report is part of a project to improve the VCA's capacity to boost market economy mechanisms in Viet Nam, which is supported by AusAID and United Kingdom Department for International Development through the Beyond WTO Programme, which provides technical support for newly-admitted WTO nations. — VNS

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