BUILDING AND ENFORCING COMPETITION LAW AND POLICIES

Cao Xuan Quang – VIETNAM COMPETITION AUTHORITY

EXPERIENCES FROM VIETNAM

Viewpoints in this presentation do not necessarily express those of the VCA

Bali - Indonesia (November – 2011)

www.vca.gov.vn www.qlct.gov.vn

CONTENTS

1. VIETNAM COMPETITION LAW

2. VIETNAM COMPETITION AUTHORITY

4. EXPERIENCE ON ENFORCING LAW

3. EXPERIENCE ON BUILDING LAW AND AGENCY

3

1. Vietnam Competition Law

Approved on 03 December 2004Come into force on 01 July 200515 drafts during 4 years3 implementing decrees on

enforcement guidance2 implementing decrees on

competition authoritiesA number of detail guidelines

4

1. Vietnam Competition LawCoverages:

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

5

2. Vietnam Competition Authority (VCA)

Established in early 2004Officially recognized in Jan 2006Under the Ministry of Industry and Trade

(MoIT)VCAD Leader (i.e. Director General):

appointed by the PMBudget: allocated by the Govt

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

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.

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

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

4. Experience on enforcing the Law

First phase: preparationSecond phase: enforcementThird phase: review and revise (if

necessary)

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

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

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

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

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

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

4.2 Second phase: enforcement

Order/hearing stage Well preparation Relationship with judges/commissioners Advocacy Importance of PR

4.2 Second phase: enforcement

Technical assistance Resident advisor International training workshop Conference/forum Internship Other TA activities

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)

THANK YOU!