Monopoly in Vietnam

Contents

EXECUTIVE SUMMARY 2

State Monopoly 3

Gasoline market: Still oligopoly! 6

Aviation monopoly 7

CONCLUSION 8

EXECUTIVE SUMMARY

Monopoly in doing business (whether the formation and existence) somehow also have negative consequences for the economy. It led to the formation of monopoly prices which affects the interests of consumers. In Vietnam, with some of the intrinsic characteristics of the socio-economic background should remain a number of industries and sectors exist monopolies.

Although the State recognizes the existence of the economic sectors and assert equality between economic sectors before the law, but when carrying out, many state agencies have not really complied with this provisions. Status discrimination between economic sectors, especially between state enterprises and private sector businesses are common. Besides, due to local interests, some state agencies indirectly interfere with the business activities of enterprises, in favor of one or more businesses. This problem arise monopoly in Vietnam.

State Monopoly

“First of all, the concept of state monopoly (or state-owned monopoly) to indicate the company has a dominant position or market power due to the restrictions on competition generated by the State. In most cases, the companies are owned by the State and the State does not allow any competition from private company.

It is necessary to distinguish the state monopoly and natural monopoly (an industry will have better economies of scale if only a single supply and generally industries are classified in natural monopoly will be governed by the laws and monitoring agencies, such as telecommunications, energy, water supply, railways)

In many countries, a number of natural monopoly industries are also state monopoly but not necessarily because natural monopoly can be done by the private sector with the permission of the state. On the other hand, in an industry or sector where the state monopolizes can have more than one state companies operate and compete with each other” (Bùi Nguyễn Anh Tuấn, Có cần một đạo luật riêng về độc quyền nhà nước?)

“Based on the way of formulation, the monopoly business in Vietnam can be classified by two categories: State monopoly or administrative monopoly, which is created by the administrative regulation of the State, and the natural monopoly. However, there are not many differences