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Neutralising the Advantages of State-Owned Enterprises for a Fair Playing Field

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  • NGUYEN Anh Tuan

    (LNT & Partners, Viet Nam)

Abstract

Despite Vietnamese competition authorities’ attempts to control state monopolies in domestic markets during the last 10 year of establishment, this appears to be the key challenge of Vietnamese competition regime. In the process of transitioning from a centrally planned economy to a market economy, the State-owned enterprises (SOEs) sector is perceived as a means to ensure the socialist orientation of the economy as well as preserve national economic goals. For these purposes, SOEs have been offered several advantages ranging from tangible incentives to latent conveniences over the privately owned enterprises. In this context, competition laws and policies should be able to neutralise the advantages of SOEs to level the playing field or else it would be used a shield to protect SOEs from their private rivals. This paper looks into the issues with the SOE sector in the context of Viet Nam’s political economy and identifies the factors inhibiting the country’s effort to control State monopolies in the last 10 years of competition law enforcement. It provides commentaries on the implementation of competition laws and policies in Viet Nam from the perspective of economic integration, particularly the on-going negotiation Trans-Pacific Partnership.

Suggested Citation

  • NGUYEN Anh Tuan, 2015. "Neutralising the Advantages of State-Owned Enterprises for a Fair Playing Field," Working Papers DP-2015-79, Economic Research Institute for ASEAN and East Asia (ERIA).
  • Handle: RePEc:era:wpaper:dp-2015-79
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    File URL: http://www.eria.org/ERIA-DP-2015-79.pdf
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    References listed on IDEAS

    as
    1. Rully PRASSETYA & Ponciano INTAL Jr, 2015. "AEC Blueprint Implementation Performance and Challenges: Standards and Conformance," Working Papers DP-2015-42, Economic Research Institute for ASEAN and East Asia (ERIA).
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    More about this item

    Keywords

    antitrust; competition law; competition policy; competitive neutrality; developing countries; public enterprises; political economy; industrial policy; SOEs; State monopoly; TPP; Viet Nam.;

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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