Antimonopoly in the socialist oriented market economy of our country today

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INTRODUCTION
1. Overview of the research
The   topic   "Antimonopoly   in   the   socialist   oriented   market 
economy   of   our   country   today"   has   been   long   cherished   by   the 
fellow.   The   structure   of   the   thesis   consists   of   an   introduction, 
overview of research issues, three chapters, 8 periods, appendix, list 
of scientific works of the author, list of references. The main part of 
the   thesis   focuses   on   three   chapters   with   148   page   volume 
presenting   the   fundamental   problems   that   the   fellow   chooses   to 
study, to answer the core questions which the fellow himself poses 
and   needs   to   address,   such   as:   anti­monopoly   in   the   socialist­
oriented market economy in our country today then who is going to 
fight? What to fight? And how to fight?
2. Reasons for choosing the thesis topic
Monopoly or market control is the dream of most businesses to 
survive and grow without facing competition. In fact, the formation 
of monopolies in the market very easily leads to the situation that 
these enterprises will abuse that position to obtain high monopoly 
profits, negatively affecting the economy, society and consumers as 
well.   When   having   a   monopoly   position,   enterprises   entirely   are 
possible to manipulate the market according to their market power.
Recognizing   the   negative   impacts   of   monopoly,   the   Party 
advocated   to   "narrow   the   fields   that   the   State   now   has   trading 
monopolies, eliminate monopoly", and "improve the mechanism, 
policy for the State enterprises to actually operate in a competitive, 
open,   transparent   environment,   improve   efficiency.   Eliminate 
monopoly and exclusive business and production of state­owned 
enterprises". However, monopoly situation still exists with many 
complicated   happenings.   Meanwhile,   antimonopoly   activitiy   still 

reveals   many   limitations,   yet   high   performance,   discrimination 
between businesses still exists; action against unreasonable price 
fixing is ineffective, the phenomenon of rising prices, protecting the 
interests of the State have been violated and exploited to serve a 
group   of   people,   people   are   not   entitled   to   all   the   benefits   that 


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society   has   created,   which   has   influenced   significantly   on   the 
economic   and   social   activity   of   our   country.   Besides,   with   the 
market opening process through the signing and joining of bilateral 
and   multilateral  trade   agreements,   there   have  been   multinational 
companies   operating   in   Vietnam.   With   there   economic   strength, 
these companies have the ability to create a monopoly position to 
carry out their market power. The status of eliminating rivals to 
usurp the market, establish monopoly position will occur. In this 
context, Vietnam enterprises with limited potential are vulnerable, 
or manipulated to become subsidiaries, satellite companies for such 
corporations.   The   above   raises   the   suspicion   surrounding 
antimonopoly now in our country today.
Under   theoretical   perspective,   this   is   a   complex   issue, 
relevant   to   and   affecting   many   areas   so   it   has   attracted   the 
attention of social research in different perspectives, scopes and 
achieved   certain   performance.   The   requirement   is   to   further 
clarify theoretically and practically those above issues, from that, 
propose points of view and appropriate solutions in antimonopoly 
to   meet   the   requirements   of   building   a   stable   and   developed 
economy.   With   this   meaning,   the   author   selected   the   topic: 
"Antimonopoly in the socialist oriented market economy of our  

country today" as a doctoral thesis on economics.
3. Research purpose and tasks
* Purpose: To clarify the theoretical and practical foundations of 
antimonopoly in the socialist oriented market economy. Assess the actual 
situation of antimonopoly in our country. Then propose basic solutions for 
antimonopoly in the socialist oriented market economy of our country in 
the coming time.
* Task:
­   On   the  basis  systemizing   common   problems   of   monopoly, 
enterprise monopoly, the thesis focuses on the construction of the central 
concepts and content of antimonopoly in the socialist oriented market 
economy. Survey experience of other countries in antimonopoly, and 
then draw some lessons for Vietnam.


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­ Assess the situation of antimonopoly in our country today, with 
pointing out the achievements, constraints and causes of antimonopoly, 
and issues rose in the anti­monopoly of our economy.
­   Propose   fundamental   perspectives   and   main   solutions   on 
antimonopoly in the socialist oriented market economy.
4. Research object and scope
­ Research objects: The thesis does not study antimonopoly 
in general but mainly focuses on the study of antimonopoly in the 
socialist oriented market economy.
­   Research   scope:   Research   space   is   identified   as   the 
socialist   oriented   market   economy   in   Vietnam;   time   of   survey 
research is from 2005 to present; in terms of content: focus on the 
basic   issues   of   antimonopoly   in   the   socialist   oriented   market 

economy in Vietnam today.
5. New contributions of the thesis
The thesis contributes to clarify the theoretical and practical 
issues of antimonopoly in the socialist oriented market economy, 
which focuses on building concepts and content of antimonopoly in 
the socialist oriented market economy.
Assess   the   true   state   of  antimonopoly,   clarify   the 
achievements   and   limitations,   and   point   out   the   cause   and   the 
questions of antimonopoly in the socialist oriented market economy 
of our country today.
Propose   some   perspectives   and   basic   solutions   for 
antimonopoly   in   the   socialist   oriented   market   economy   of   our 
country today.
6. Theoretical and practical meanings of the thesis
Contribute to supplement and enrich the theoretical and practical 
issues on antimonopoly in the socialist oriented market economy of our 
country today.
The research results of the thesis are a theoretical, practical basis for 
all   levels   as   reference   to  build   a   competitive   environment   for 
antimonopoly in the economy of our country today.
The thesis can be used as reference in scientific research, teaching 


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and learning at universities in our country today.
OVERVIEW OF RESEARCH ISSUES
1.   The   foreign   scientific   studies   on   monopoly, 
antimonopoly 
* The researches related to monopoly, enterprise monopoly 

Around   the   world   there   have   been   many   studies   related   to 
monopoly, enterprise monopoly such the works  "Economics"  of 
P.A. Samuelson. Michael E. Porter with the works: "Competitive 
Strategy",   "Competitive   Advantage",   "National   competitive  
advantage". Ben W.F. Depoorter in the book "5400 Regulation of  
natural monopoly" of the Center for Advanced Studies in Law and 
Economics, University of Ghent, Faculty. The author Patrick Rey 
and Paul Seabright with the book  "The activities of a monopoly  
firm   in   adjacent   competitive   markets:  Economic   consequences  
and implications for competition Policy ". The topic "Firms with  
market power: monopoly" of Ali Emami. Author Ferguson, Paul R 
with the book "  Business economic: the application of economic  
theory ".
* The researches related to enterprise antimonopoly
X.Nicitin   with   the   book  "Antimonopoly   policy   in   countries  
with developed market economy".  Howard D. Marshall with the 
book  "Business   and   Government:   The   problem   of   power";   or 
Stephen J.K. Walters,  "Enterprise, Government, and the public"; 
Author Christopher: "Outline of the US Economy".
2.   The   domestic   scientific   researches   on   monopoly, 
enterprise antimonopoly
* The works mentioning about monopoly, enterprise monopoly 
The topic:  "The impact of competition and monopoly in the  
economy of modern capitalism on building the market economy in  
Vietnam today"  of the National Academy of Politics. Tran Van 
Hien with his thesis on economics "Theory of Lenin on the world  
market sharing among alliances of capitalism monopoly and new  
expression   in   the   current   period".   Dr.   Bui   Van   Huyen: 

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"Construction   and   development   of   economic   corporations   in  
Vietnam".  The book:  “Market structure ­ theory and practice in  
Vietnam” by Nguyen Van Dan.
* The typical works related to enterprise antimonopoly
Bui Ha with the theme:  "Monopoly and antimonopoly in the  
market   economy",   and   "Forms   and   measures   to   encourage  
competition   and   control   monopoly   of   the   market   economy”. 
Economic   thesis:  "Competition   in   the   market   economy   in  
Vietnam"  by   Nguyen   Quoc   Dung.   The   Central   Institute   of 
Economic Management Research with the book:  "The legal and  
institutional   issues   of   policy   on   competition   and   monopoly  
control".  Dong Thi Ha:  "Improvement of policy on competition  
and   monopoly   control   in   Vietnam   in   terms   of   international  
economic   integration".  Dinh   Thi   My   Lan   with   the   book 
"Japanese   antimonopoly   law,   implementation   experience". 
"Competition Policy of the European Union in the context of new  
development"  by Dang  Minh  Duc.  Author  Dinh  Thi  My  Loan: 
"Control   the   economic   focus   ­   international   experience   and  
practices  in  Vietnam".  Author  Bui Nguyen  Anh  Tuan  with  the 
book  "Competition   policy   from   the   perspective   of   developing  
countries".
Dang   Vu   Huan:  "The   law   on   anti­monopoly   control   and  
unfair competition in Vietnam". Le Anh Tuan with the book "Law 
on against unfair competition in Vietnam". Articles in magazines 
such as: Nguyen Nhu Phat, "Monopoly and handling monopoly"; 
author Khanh An, "It is neccessary to tighter control monopolies"; 
Pham Van Chung, "State monopoly and enterprise monopoly"; Le 
Van   Hung  "There   should   be   provisions   for   State­owned  

enterprises in the implementation of competition law".
* The studies refer to aspects of antimonopoly
Nguyen   Nhu   Phat   and   Nguyen   Ngoc   Son   in   the   book 
"Analysis and interpretation of provisions on competition law on  
abuse of dominant position in the market, monopoly position to  
restrict   competition".   Doan   Trung   Kien   with  "Identification   of  


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abuse of dominant position, monopoly position under the current  
law   in   Vietnam".   Tran   Anh   Tu   with  "Identification   of  
administrative   monopoly   in   business   in   Vietnam".   Pham   Hoai 
Huan   in   his   book  "Laws   against   abuse   of   dominant   position,  
monopoly position to restrict price competition".
Articles by Dao Van Tu  "Monopoly and issue of controlling  
monopoly prices in Vietnam". And "Control prices for monopoly  
goods and services in Vietnam today"  by Le  Viet Thanh. Tran 
Ming   Dao   with   the   article:  "Price   management   in   the   market  
economy   in   Vietnam”.   Nguyen   Huu   Huyen   with   the   article 
"Identification of Cartels pursuant to the law on competition of  
developed countries".
3.  General evaluation of the research results of published 
scientific works thesis and issues that the thesis should focus 
on solving
It is possible to say that the foreign and domestic authors have 
had many studies and articles with various approach, extent, scope 
and   purpose,   more   or   less   mentioned   about   monopoly   and 
antimonopoly.
However, because they are not the research subjects, the works 

and writings of domestic and foreign authors do not study in depth 
in a systematic way anti­monopoly in the socialist oriented market 
economy, but just mentioned, analysed the single aspects, sides, 
slice   or   a   part   of   the   research   object   i.e.   anti­monopoly   in   the 
market economy.
Meanwhile, there are not many scientific works refering directly 
to antimonopoly or aspects in antimonopoly from the perspective of 
political   economy,   but   they   often   study   the   opposition   side   of 
monopoly i.e competition, creating a competitive environment in the 
socialist­oriented market economy. Many scientific works mention 
antimonopoly issues and antimonopoly aspects under jurisprudence 
perspective, interpretation of specific issues of legal science. So this 
is the space for the fellow to do well in the thesis.
Chapter 1


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THEORETICAL FOUNDATION ON ANTIMONOPOLY IN 
THE SOCIALIST ORIENTED MARKET ECONOMY AND 
EXPERIENCE OF SOME COUNTRIES
1.1. The general theoretical issues on monopoly, enterprise 
monopoly in the market economy
1.1.1. The concept of monopoly, enterprise monopoly 
* Under the perspective of bourgeois economists
The economists of mercantilism are in favor of monopoly of 
national capitalist in international trade. Physiocracy condemned 
privileges and feudal monopoly; they do advocate that the State 
shall not intervent in the economy. The classical school promotes 
free competition, against the interference of the state in economy. 

Neoclassical   synthesis   provides   the   theory   of   both   competition 
and monopoly. Austrian school does not advocate development of 
monopoly   indefinitely,   but   advocates   the   Government   to   use 
regulate   force   to   limit   and   reduce   monopoly.   Modern   primary 
school states that the fails met by the market make its operation 
not so efficient are affected by monopolies.
* Under the perspective of Marxist economists
Karl   Marx   saw   that   the   development   of   the   forces   of 
production, accumulation and concentration of capital created by 
competition would inevitably lead to the formation of monopolies. 
Monopoly is  expressed  by Engels  that  "Exclusive Organization 
(capitalism) is an alliance between the capitalists hold most of the 
production and consumption of one or more of certain types of 
goods, in order  to gain high monopoly profit". V.I. Lenin sees 
monopoly   is   the   most   prominent   economic   characteristic   of 
capitalism   in   the   new   period.   He   asserts   that   the   source   of 
monopoly   is   competition,   accumulation   and   concentration   of 
capital   with   the   underlying   cause   of   the   development   of   the 
productive forces of society. This monopoly is essentially a form 
of alliance between the capitalists holding most of the production 
and consumption of certain types of goods to obtain monopoly 
profits high as Engels pointed out.


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* The notion of scientists in Vietnam
According   to   Hoang   Dinh   Can,   economic   monopoly   is   the 
status to concentrate economic forces (strength) in the hands of 
one or a few people, making them powerful for the reproduction 

of society. Encyclopedia of Vietnam states that monopoly is the 
condition   that   there   is   only   one   or   there   are   a   few   people   (or 
organizations) monopolizing the market. According to the Great 
Dictionary of market economy, monopoly is a few large capitalist 
firms going for high monopoly profits joint venture to monopolize 
the market and produce exclusively a certain commodity X.
According   to   Nguyen   Van   Ngoc,   an   enterprise   becomes   a 
monopoly when it is the only seller of its product and if that product 
has no close substitutes. Central Institute of Economic Management 
states that monopoly in business is that an enterprise or a corporation 
with   certain   economic,   political   and   social   conditions   control 
production and consumption market of products, goods and services. 
Competition Law of Vietnam, an enterprise is considered to be the 
exclusive if there is not any other enterprise competitive to the goods 
and services that this enterprise doing business in the relevant market. 
Nguyen Van Nam said that the monopoly of a business specified in 
the Competition Act must be interpreted as a market power of an 
enterprise when doing business in a certain product for consumers, 
for rivals, set in the relevant market.
From the above points of view, it is the author’s opinion that, 
monopoly   is   an   objective   economic   phenomenon,   reflecting   the  
existence of the enterprise in the market without competition. When 
there is a monopoly position, the market will give that enterprise its 
power, "the ability to affect the market price of a certain goods or 
services".   Accordingly,  enterprise   monopoly   is   the   term   used   to  
describe  the  power  of   firms  in  dominating  input  and  output  of  a  
particular commodity on the market.
Enterprise monopoly in the market economy with a socialist 
orientation has basic characteristics including:

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First,   the   concentration   in   the   hands   of   one   or   several 
enterprises taking most part in the production and consumption of 
a   particular   commodity   to   ensure   monopoly   position   in   a 
particular industry or sector.
Second, when there is the establishment of monopoly position, 
the   enterprise   tends   to   abuse   that   position   to   obtain   monopoly 
profits.
Third, firms take advantage of the state monopoly to become 
enterprise monopoly, serving the interests of that business.
Fourth,   there   is   the   possibility   of   market   pricing,   forcing 
competitors   and   consumers   to   comply   with   those   prices   called 
monopoly pricing.
Fifth, there  is the ability to prevent competition from other 
companies, in order to strengthen the monopoly position of the 
business.
1.1.2.   The   forms   of   enterprise   monopoly   in   the   socialist  
oriented market economy 
First, based on the formation source including:
   ­ Monopoly formed by the accumulation and concentration 
of production
­ Monopoly derived from the intervention of the State.
­ Natural monopolies:
Second, based on the level of corporation’s domination over 
the market, monopoly has the following formats:
­ Monopoly in selling
­ Monopoly in purchase
­   Monopoly   in   limiting   sales   and   monopoly   in   limiting 

purchase
­ Bilateral Monopoly:
1.1.3. Cause of forming enterprise monopoly in the socialist  
oriented market economy in our country today
First, monopoly is formed from the competition between enterprises in the 
economy.
Second, the State’s policy to form State monopoly on a number of areas.


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Third, monopoly is formed from the demands of the scale of investment, 
technology and manufacturing technology.
Fourth, monopoly is formed from the existence of barriers in the market.
1.2.   Concept,   content   and   the   need   for   enterprise   anti­
monopoly in the socialist oriented market economy
1.2.1.   The   concept   of   enterprise   anti­monopoly   in   the  
socialist oriented market economy
Antimonopoly in the socialist oriented market economy is the  
summary  of  manners  and  measures   that  the   socialist   countries  
and   the   economic   actors   use   to   manage,   control   and   prevent  
monopoly acts adversely affecting the economy, in order to create  
a   healthy   competitive   environment   for   the   economy,   while  
contributing  to  harmonize the  interests of  the  State,  businesses  
and consumers.
In essence, this is the action of the State and the economic 
subjects for the enterprises with monopolistic behavior adversely 
affecting   the   economy,   in   which   the   State   and   the   economic 
subjects are the subjects of antimonopoly activities.
The objects of antimonopoly activities are enterprises in an 

economy   operating   in   the   fields   of   manufacturing,   sales   and 
service implementing acts of abusing monopoly which negatively 
impact the economy.
The   methods,   measures   of   antimonopoly   include   legal; 
economic; educational measures.
The   main   purpose   of   antimonopoly   is   to   build   a   healthy 
competitive   environment   with   equality   between   businesses, 
resolve in harmony the interests of subjects in the economy.
1.2.2.   Content   of   enterprise   antimonopoly   in   the   socialist  
oriented market economy in Vietnam
First,  against abuse of dominant position, monopoly position 
of the business.
Second,  against   agreements   to   limit   competition   of 
monopolies
Third,  against the unreasonable determination of the product 
price to obtain high monopoly profits.


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Fourth,  control   the   activities   of   economic   concentration   of 
enterprises   tending   to   form   a   dominant   position,   monopoly 
position.
1.2.3. The need for enterprise anti­monopoly in the socialist  
oriented market economy
* Starting from the requirement to create a healthy competitive  
environment in the development of the  socialist   oriented   market  
economy
* Derived from the negative effects of monopoly enterprises for  
economic, political, social, defense – security purposes.

1.3.   Experience   of   some   countries   in   the   world   in 
antimonopoly and lessons for Vietnam
1.3.1.   Experience   in   enterprise   antimonopoly   in   some  
countries
* The experience of the United States
The US is the first country in the world to issue anti­monopoly 
law and encourage competition.
The United States also put competition in the area of public 
service   provision,   creating  competition   in   providing   services  to 
the government, to encourage competition between companies of 
the Government.
Enhance   the   role   of   the   Federal   Trade   Commission   in 
enterprise antimonopoly.
Strictness and deterrence of law, especially the violations of 
antimonopoly law are enforced more and more strictly.
* The experience of the European Union
The European Union also built a policy on competition and 
antimonopoly early.
Bring competition to execute in the fields where only state­
owned   enterprises   or   private   monopolies   are   in   charge,   with 
solutions   to   eliminate   barriers   in   rotation   of   goods,   services, 
capital and labor, completing intra­school market.
The European Union attaches great importance to the role of 
management bodies


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The   European   Union   also   quite   effectively   uses   economic 
measures and administrative measures.

In addition, the relatively strong intervention of the State in 
order to ensure consumer rights is respected in practice.
* Experience of Japan
Japan   also   soon   issued   Antimonopoly   Act   (07/1947),   and 
organized   the   operation   of   the   competition   management 
departments.
The Japanese government has step by step applied measures to 
narrow the scope of property and business of the State.
Japan focuses on improving the quality of life, reducing the 
difference   between   domestic   price   and   foreign   one,   enhancing 
market access, harmonious combining institution and international 
structures,   arranging   the   structure   of   sectors,   encouraging 
participation in the market of new businesses ... and the activities 
consistent with competition policy.
* The experience of China
Separate the Government out of business; raise capital outside 
the   State   with   different   ownership   percentage.   China   has 
established   management   and   state­owned   assets   supervision 
agencies at both central and local levels to release most of the 
intervention of the owners of the State management agency for 
State enterprises.
Give competitive mechanism to monopolies by opening the 
door to private sector and foreign countries to participate, creating 
competition within the sector.
Use the law to monitor and manage rather than administrative 
orders before.
However,   in   the  antimonopoly   activities,   China   still   has  its 
limitations.
1.3.2. Some lessons for Vietnam from antimonopoly experience  
in some countries in the world

13

First,   build   a   consistent   legal   system,   in   which   soon   issue 
Antimonopoly Law and implement in an earnest way, serving as 
the basis for enterprises doing fair business and competition.
Second, promote the role of state management agencies and 
social organizations in antimonopoly to create an environment of 
fair competition, to protect the interests of consumers.
Third,   develop   a   healthy   competitive   policy   with   an   open 
market,   highly   competitive   together   with   the   participation   of 
components and enterprise.
Fourth,   incorporate   economic,   administrative   measures   in 
antimonopoly.
Fifth, clearly separate functions of administrative and business 
management of the state over state enterprises, and promote the 
reform of state­owned enterprises towards reducing monopoly of 
the business.
Conclusion of chapter 1
Based on the approach to different viewpoints of scientists, 
the   author   has   given   an   opinion   about   monopoly,   enterprise 
monopoly,   indicating   the   characteristics   of   enterprise   monopoly. 
The introduction of central concepts, along with figuring out the 
basic   content   of   antimonopoly   in   the   socialist­oriented   market 
economy is the focus of chapter 1. The thesis researches experience 
of   other   countries   from   which   to   draw   lessons   for   Vietnam   in 
antimonopoly.
Chapter 2
ACTUAL SITUATION OF ANTIMONOPOLY IN THE 

SOCIALIST ORIENTED MARKET ECONOMY 
OF VIETNAM
2.1.   Situation   of   enterprise   monopoly   in   our   country   in 
recent years
The   phenomenon   of   abusing   dominant   position,   monopoly 
position in the market still exists.


14

The   situation   of   abusing   state   monopoly   into   enterprise 
monopoly is complicated.
Operation of agreement in restricting competition by monopolies 
is increasingly sophisticated.
  Activities of unreasonable fixing prices to gain high monopoly 
profits of monopoly enterprises have a negative impact on society 
and people.
Activity of economic centralizing by enterprises to establish a 
dominant position, monopoly position tends to increase.
2.2. Achievements, limitations and causes of antimonopoly 
in our country in recent years
2.2.1. Achievements and causes
2.2.1.1. The achievements
Vietnam has built a system of legal framework, serving for the 
management of competition, antimonopoly.
The handling of operations abusing dominant market position, 
monopoly position of the business initially has positive effect in 
creating a competitive environment.
Has   specified   the   sectors   of   production   and   business   under 
state monopoly

The control and supervision of the activities of corporations, 
large State own enterprises (SOEs) are respected.
SOEs are rearranged an important step. SOEs operations focus 
primarily   on   the   sectors   and   geographical   areas   of   crucial 
importance that the State needs to hold.
Activity against agreements in restricting competition of the 
monopolies   has   achieved   some   initial   results   contributing   to 
improve the business environment.
Has   implemented   price   controls   on   some   essential 
commodities and commodity with monopoly nature
Implement   control   of   the   economic   concentration   activities   of 
enterprises with tend to form a dominant position, monopoly position.
2.2.2 The limitations, weaknesses and causes
2.2.2.1. The limitations and weaknesses


15

First,   fighting   against   abuse   of   dominant   market   position,  
monopoly position of business has not high efficiency. So far, the 
Competition   Administration   Department   has   decided   to 
investigate   only   6   cases   of   restricting   competition,   of   which   3 
cases related to abuse of dominant position, monopoly position 
and 3 cases concerning the behavior of linking oligopoly
The handling of cases of abuse of dominant position, monopoly 
position faces many obstacles in the provisions of the law.
The   provisions   on   abuse   of   dominant   position,   monopoly 
position do not cover the full abuse actions.
Second, activities against enterprises taking advantage of the  
state   monopoly   to   become   enterprise   monopoly   are   still  

inadequate.
  Not yet form a detailed legal framework for the management 
and supervision of conglomerates in the specific field of activity.
Not   yet   clearly   seperate   state   ownership   and   corporate 
ownership,   whereby   the   separation   of   the   functions   of   state 
management in administration and economy in SOEs is unclear.
Currently,   the   arrangement   and   equitization   of   state­owned 
enterprises are slow and not tight.
Some   contents   in   the   structure   project   of   each   group,   each 
corporation have no strong solution, breakthrough.
Enterprises of different economic sectors have not been set in 
the   competitive   environment   of   equality;   many   favors   are   for 
SOEs, especially those monopolies.
Third,   the   operation   against   unreasonable   price   fixing   to  
obtain   monopoly   profits   is   not   so   effective.   Price   control 
mechanism of the State agency for each product of the monopolist 
is still inadequate, efficiency, flexibility are not high.
The lack of transparency of monopolies in the determination 
of the product price makes it difficult for the state agency.
The control of price­fixing activities between the exporters of 
goods abroad with exclusive distributors in Vietnam market does 


16

not   seem   to   be   possible,   because   the   legal   framework   is   still 
missing governing rules.
Fourth,   control   the   economic   concentration   activities   of  
enterprises   tending   to   form   a   dominant   position,   monopoly  
position   lacks   focus.   The   legal   framework   in   the   control   of 

economic concentration activities of enterprises tending to form a 
dominant position, monopoly position is incomplete.
Coordination   and   management   mechanisms   of   economic 
concentration activities between competion management agencies 
with the state management agency have not been identified.
The   gathering   of   information   and   data   on   the   economic 
concentration   of   the   competition   management   agencies   is   also 
difficult.
The   control   of   M   &   A   activity   involving   mergers,   joint 
ventures, consolidation is not tight and easy to facilitate business 
to expand monopoly.
1.2.2.2. Cause of disadvantages, limitations
First,   the   perception   on   the   law   including   the   law   on 
competition   of   the   State   management   agencies,   businesses, 
associations are uneven.
Second,  the   role   of   state   management   agencies   in 
antimonopoly has not really promoted effectively.
Third, the role of business associations is unclear in creating a 
competitive environment.
Fourth,  the   voice   of   consumers   and   social   organizations   in 
protecting the rights of clients is not high.
Fifth, human resource of competition management agencies is 
not sufficient; qualifications of those working in management and 
supervision are limited.
Sixth,   the   legal   framework   and   enforcement   of   competition 
policy, antimonopoly are weak and sufficient.


17

Seventh, the competitive environment in the economy is not 
high; enterprises of different economic sectors are not set in the 
environment for fair competition.
Eighth, the impact of the international and regional institutions 
on our country.
2.3. Some issues raised about enterprise antimonopoly in 
the socialist oriented market economy in our country today
First,  antimonopoly requires creating synchronous elements in 
competition institution, antimonopoly, meanwhile, the legal systems 
on competing, management apparatus, mechanisms and policies are 
not yet complete and lack of competition and overlap.
Second,   antimonopoly   requires   good   promotion   of   role   and 
coordination of the subjects, while the perception, position, role 
and coordination of the anti­monopoly forces are now not high.
Third,   antimonopoly   is   putting   increasing   high   demands   of 
professionalism, efficiency, while investment in human resources 
and finance for these activities is limited.
Fourth,   antimonopoly   requires   solving   the   relationship 
between the requirements to ensure fair competition environment 
with the leading role of the state economy.
Conclusion of chapter 2
Enterprise monopoly in our country in recent years is still 
complicated. Antimonopoly activity in recent years has achieved 
certain results. However, there are still many shortcomings and 
limitations. The cause of these outstanding includes both objective 
and subjective ones, but the subjective one is major. Four issues 
pointed out in antimonopoly are very basic, serving as the basis 
for figuring out the solutions for antimonopoly in our country in 
the future.

18

Chapter 3
BASIC VIEWPOINT AND MAJOR SOLUTIONS
 ON ANTIMONOPOLY IN THE SOCIALIST ORIENTED 
MARKET ECONOMY IN OUR COUNTRY IN THE 
COMING TIME
3.1.   Basic   notions   of   enterprise   antimonopoly   in   the 
socialist oriented market economy of our country today in the 
coming time
3.1.1. Antimonopoly in the socialist oriented market economy  
is not to eliminate monopolies or reject the dominant role of state  
economy   but   to   fight   against   the   abuse   of   monopoly   which  
negatively impacts the economy
To make this point, it is necessary to well implement some of 
the following:
First, continue to improve the system of law on competition, 
antimonopoly.  Second, consistently confirm  the  key role of the 
state  economy  in  the  socialist­oriented   market  economy.  Third, 
continue to organize, innovate and improve the efficiency of state 
enterprises. State enterprises must concentrate their operations in 
the   key   stages   in   the   field   of   security   and   defense,   natural 
monopolies,   providing   essential   public   goods   and   services   and 
some   basic   industries,   high   technology   with   big   spreading 
strength.
3.1.2. Antimonopoly in the socialist oriented market economy 
is   the   responsibility   of   the   whole   society,   in   which   the   state  
management agency of competition is the core force
Antimonopoly in the socialist oriented market economy of our 

country today is the responsibility of the whole society, in which 
the state playing a role as "maestro", creating an environment with 
legal   framework   for   entities   to   refer   to.   Enterprises,   social 
organizations, and consumers are important subjects.
In   order   to   implement   this   perspective,   there   is   a   need   to 
improve effectiveness and efficiency of the State in management. 
Improve   the   organizational   structure   of   the   competition 


19

management   agency   to   ensure   independence.   Develop   staff   for 
management   of  competition   to   meet   the   requirements  of   social 
development.   Promote   the   role   of   associations,   social 
organizations and consumers in antimonopoly.
3.1.3. Antimonopoly must be done in sync with the perfecting of the  
socialist­oriented market economy institution
In essence, this is the specific development of the socialist­oriented 
market   economy   institution   in   creating   a   competitive   environment, 
antimonopoly.
Accordingly,  first   of   all,   it   is   necessary   to   complete   the   legal 
framework   in   general   and   law   on   competition,   antimonopoly   in 
particular   to   ensure   for   subjects   to   work   in   accordance   with   the 
operation laws of the  market economy, as well as to maintain the 
socialist orientation in the development process. Second, promote the 
key role of our economy together with strong economic development 
of economic sectors and types of businesses; form some economic 
groups,   the   multi­owner   corporations,   apply   modern   management 
model, with international competitiveness.  Third, create a favorable 
environment for enterprises to act and compete in a healthy and fair 

way.
3.1.4.   Antimonopoly   must   ensure   compliance   with  
international regulations and practices
In   the   trend   of   performing   open­door   policy,   one   of   the 
requirements is that Vietnam needs to complete the legal system. 
Accordingly, the legal system in Vietnam needs to review, compare, 
timely   adjust   and   transform   international   treaties,   signed   trade 
agreements in the legal system of Vietnam to come to agreement to 
meet the integration into the world’s economy. The important thing 
now is that Vietnam should choose therapies of adjustment with a 
procedure suitable with our political and economic conditions, from 
which to build and perfect the legal system accordingly.
3.2.   Major   solutions   on   antimonopoly   in   the   socialist 
oriented market economy of our country in the coming time


20

3.2.1.  Continue   to   improve  the   socialist   oriented   market  
economy  institution in which the focus is to create a healthy  
competitive environment
This is the premise solutions, in order to create the legal basis 
for the subjects to refer to implement. Accordingly, it is necessary 
to well implement some of the following measures:
First, continue to improve the legal system in which there is 
competition law.  Second, continue to improve the mechanism of 
competition, control, anti monopoly. Third, perfect synchronically 
market factors, especially the sectors and aspects with monopoly 
nature. Continue to improve the institution on price, supply and 
demand, competition and controlling monopoly of the business. 

Fourth,   enhance   the   role   and   effectiveness   of   economic 
management of the State in accordance with the request to create a 
healthy competitive environment in the socialist oriented market 
economy.
3.2.2. Enhance the role of subjects in the management of  
competition, antimonopoly 
* For the State:
Need   to   determine   the   role   of   the   State   in   the   creation   of 
competitive environmen.
Continue   to   strengthen   the   state   competition   management 
apparatus.
Improve   the   quality   of   training   and   re­training   of   human 
resources   for   the   competition   management   agency.   Increase 
investment   in   infrastructure,   operational   funding   for   the 
competition management agency.
Create   clarity   and   transparency   in   the   functions   and 
responsibilities of the competition management agencies and the 
management ministries of industries to tackle differences in the 
application of standards and treatment.
Actively check, control the operation of monopolies; timely 
detect signs of monopoly negative impacting the economy.
* For professional social organizations, communities and people:


21

Need to raise  awareness, responsibility, create consensus of 
the social organizations and people in antimonopoly.
Promote the role of business associations, social organizations 
in creating a competitive environment, antimonopoly.

The associations need to work closely with the competition 
management   agency   in   raising   awareness   for   the   business 
community   and   industry   associations   on   competition   law,   anti­
dumping, anti­subsidy and safeguard measures; positively prevent 
and anti violations of law.
Enhance counseling, support businesses as well as consumers. 
Need   to   actively   research,   fieldwork,   collect   ideas,   reflect   the 
needs of consumers.
Promptly provide the state management agency for protecting 
the rights of consumers with information about legal violations of 
organizations and individuals trading in goods and services with 
monopoly abuse signs.
It   should   be   positive,   proactive   in   contributing   opinions, 
comments on the content of legal documents related to competition, 
antimonopoly.
The government should enact specific laws or decrees in order 
to enhance the role in the operation of enterprise associations in 
Vietnam.
* For consumers:
Elevate   the   voice   of   consumers   in   building   competitive 
environment,   antimonopoly.   Accordingly,   consumers   need   to 
improve   the   understanding   and   ability   to   protect   themselves   by 
themselves, have the right choice, self defense and be responsible for 
fighting with violations of enterprises that can harm the interests of 
society   and   consumers   so   that   they   could   actually   become   wise 
consumers.
3.2.3.   Promote   the   reform   of   state   enterprises   towards  
reducing monopoly
To implement the promotion of reforming state enterprises, it 
is necessary to focus on some of the following measures:

22

First,   continue   to   review,   classify   and   define   the   specific 
criteria for large monopoly SOEs. Clearly clarify state monopoly 
and enterprise monopoly.
Second,   reform   the   mechanism   of   implementing   state 
ownership   rights   over   the   SOEs,   the   monopoly   SOEs   and 
mechanism of representing for the state owner in the enterprises.
Third,   accelerate   the   equitization,   focusing   on   economic 
groups, corporations towards reducing the number of SOEs and 
reduce   state   capital   in   enterprises.   Implement   diversification   of 
ownership in SOEs.
Fourth, perform publicly, transparently operations of SOEs, 
especially   corporations,   state   corporations   in   the   natural   fields, 
and industries.
Fifth,   reform   the   management   model   for   the   state­owned 
enterprises. Accordingly, urgently supplement and perfect SOEs 
management   mechanism,   concurrently   with   the   expansion   of 
autonomy and self­responsibility of enterprises.
Sixth,   put   the   SOEs   in   a   competitive   environment   equal   to 
other   economic   components.   Stimulate   competition   within   the 
monopolists;   the   State   must   establish   mechanisms   to   promote 
healthy   competition   of   enterprises   not   only   with   the   external 
environment, but even within the group or enterprises, consider 
this as a solution to create a market within the corporate. Put the 
monopolists in a competitive environment with the region and the 
world.
3.2.4.   Effectively   use   the   tools   of   the   State   economic  

management in control, antimonopoly 
First, control the product's price of monopoly manufacturing, 
trading sectors.
Second,   develop   mechanisms   of   publishing   and   accessing 
information;   create   transparency   in   determining   the   product’s 
price of monopolies.
Third,   there   should   be   mechanisms   regulating   to   ensure 
market   stability,   balance   of   supply   ­   demand   for   essential 
products, products with monopoly nature for the economy.


23

Fourth,   the   State   should   have   a   financial   mechanism   to 
regulate monopoly profits serving for the needs of society. Apply 
the   enterprise   basic   income   tax   rate   higher   than   normal   for 
monopolies which have excess profits, perform additional income 
tax, implement norms of maximum control with expenses such as 
advertising,   marketing,   salaries   ...   to   promote   savings,   reduce 
costs, lower price.
Fifth,   strengthen   the   inspection   and   supervision   of   the 
management   agency   over   the   commodity   or   products   with 
monopoly nature.
Sixth, control production costs of monopolies. Accordingly, it 
is necessary to check the cost of production, price of goods when 
there is price fluctuation.
3.2.5.   Strengthen   cooperation   with   the   institutions   of   the  
region and the world in antimonopoly activity
Antimonopoly is still a very new aspect in Vietnam, but has a 
long history in developing countries. Accordingly, it is necessary 

to perform some of the following measures:
First,   promote   exchanges,   research   experiences   with   other 
countries,   especially   countries   with   economies   similar   to   our 
country in building institution, management mechanism, control 
of antimonopoly.
Second,   develop   mechanisms   to   exchange   and   share 
information   between   countries   in   international   cooperation   to 
investigate inter­border cartels.
To   promote   international   cooperation   between   competition 
authorities   in   Vietnam   with   the   competition   authorities   in   the 
region and the world in cartel investigations through the various 
levels such as bilateral, regional or multilateral.
Coordinate   with   international   organizations   to   build 
information   management   system   integrated   in   the   field   of 
competition.
Third,   promote   cooperation   in   the   training   of   competition 
management staff. Cooperate with international organizations and 


24

foreign agencies of competition; hold short­term training courses 
on investigative skills for the investigators of Vietnam.
Conclusion of chapter 3
Antimonopoly   is   a   difficult   and   complicated   issue. 
Therefore   it   is   necessary   to   master   the   basic   notions   with 
orientation   nature.   For   antimonopoly   in   the   socialist­oriented 
market   economy   to   achieve   good   results,   it   is   necessary   to 
properly   implement   the   solutions.   Each   measure   has   certain 
position   and   role,   contributing   to  the   creation   of   a   competitive 

environment, antimonopoly.

CONCLUSION
1. Based on the overview of research situation related to the 
topic, it is the fellow’s opinion that the recognizing, evaluating in 
a systematic way under the perspective of political economy from 
a theoretical basis to the practice of antimonopoly in the socialist­
oriented   market   economy   in   our   country   today,   with   a 
comprehensive view of the status of antimonopoly in the economy 
of   our   country,   then   propose   solutions   in   antimonopoly   in   the 
socialist­oriented market economy is a new issue, not a duplicate 
of   other   published   researches,   with   both   theoretical   as   well   as 
practical meanings in the current period in our country.
2. Antimonopoly  in the socialist­oriented market economy  is 
essentially   the   impact   of   state   and   economic   actors   on   the 
enterprises   with   monopolistic   behavior   adversely   affecting   the 
economy. Content of antimonopoly in the socialist­oriented market 
economy  includes:   Anti   enterprises   abuse   dominant   position, 
monopoly   position;   anti   enterprises   abuse   monopoly   state   to 
become   enterprise   monopoly;   anti   agreements   of   limiting 
competition of monopolies; anti the unreasonable price fixing for 


25

high monopoly profits; control concentrated economic activity of 
enterprises tending to form a dominant position, monopoly position.
3. In our country in recent years, the situation of monopoly is 
complicated:   the   phenomenon   that   enterprises   abuse   dominant 
market position, monopoly position still exists; enterprises abuse 

state   monopoly   to   become   monopoly   businesses,   serving   their 
own interests; operation of agreements in restricting competition 
of monopolies is increasingly sophisticated; unreasonable price­
fixing   activities   for   monopoly   profit   of   monopolies   have   a 
negative impact on society and the people; the concentration of 
economic activities of enterprises to establish a dominant position, 
monopoly position tends to increase.
4.   Antimonopoly  in   the   socialist­oriented   market   economy 
recently   has   made   significant   achievements,   contributing   to   the 
creation   of   a   competitive   environment,   ensuring   the   stability   and 
development   of   the   economy.   However,   there   are   still   many 
limitations and shortcomings in both institution and implementation. 
These advantages and disadvantages are due to various objective and 
subjective reasons in which the subjective ones are dominant and 
play an important role. Four issues in antimonopoly in our country's 
economy are the basic ones. The good resolution of these issues will 
contribute to the antimonopoly to be effective.
5. For antimonopoly in the socialist­oriented market economy 
in the coming time to be effective, it requires a thorough study of 
four   mentioned   perspectives,   then   perform   well   following 
solutions:   Continue   to   improve   institutions   of   the   socialist­
oriented market economy in which the focus is to create a healthy 
competitive   environment;   enhance   the   role   of   subjects   in   the 
management of competition, antimonopoly; continue to organize, 
innovate,   enhance   the   competitiveness   of   the   state­owned 
enterprises in the economy; effectively use the tools of economic