Competitiveness of 10 industries rated

steel

Vietnamese firms in the steel, cement, milk, animal feed, and chemical fertilizers industries face fierce competition from foreign rivals, the Competition Management Department said in a report on the competitiveness of 10 sectors.

The report, the first of its kind in Vietnam, also slammed several of their products, like imported milk powder and construction steel, for indulging in unhealthy competition in the form of misleading advertisements.

The report, drafted under the aegis of the Beyond WTO program, was released in Ho Chi Minh City Wednesday following its release in Hanoi last Friday.

The other five sectors — aviation, banking, insurance, oil distribution, and telecommunication — were criticized for unhealthy competitive behaviors such as abuse of advertising and promotions to gain market share.

This report is aimed at creating and maintaining a fair and healthy competitive environment in all economic sectors, the department’s deputy director, Vu Ba Phu, noted, adding that it also hopes to raise awareness of competition policies and laws among businesses.

The general secretary of the Vietnam Retailers Association, Dr Dinh Thi My Loan, said the ranking is based on the impact of price changes, consumer responses, and concerns about the surveyed industries and products.

The report’s wording, however, is “soft and not fully reflective of customer worries,” she added.

Vo Tri Thanh, deputy rector of the Central Economic Research and Management Institute, agreed with Loan, saying the report should be carefully evaluated by experts.

The department unveiled plans to conduct research and supervise the competitive structure of several other sectors for inclusion in the annual report.

Vietnam stood 59th in the 2010-2011 Global Competitiveness Report released by the World Economic Forum in September, up 16 places from last year.

Source: http://tuoitrenews.vn/cmlink/tuoitrenews/business/competitiveness-of-10-industries-rated-1.13473

 

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