The Law on Protection of Consumer Rights was ratified by the lawmaking National Assembly on November 17, 2010 and took effect on July 1, 2011. The introduction of the law and directive regulations for its enactment not only created a solid legal framework, but also reflected the attention of the Party and State to consumer rights protection in Vietnam. However, many hurdles remain to protecting consumer interests in the best manner.
According to the report released by the Consumer Protection Board under the Vietnam Competition Authority (VCA), the Ministry of Industry and Trade at the conference entitled “Review of Two-year Implementing the Law on Protection of Consumer Rights” held by the Vietnam Chamber of Commerce and Industry (VCCI), VCA annually receives some 60 written complaints and the percentage of settlements is relatively high, approximately 80 per cent, while approximately 550 complaints are lodged to the Provincial/Municipal Departments of Trade and Industry and the percentage of successful settlements is 90.2 per cent. Besides, in the past two years, consumer protection associations across the country receive some 2,000 cases, of which 80-82 per cent are successfully settled. Some localities report a successful settlement rate at 90 per cent, including Hai Phong, Ha Tinh and Kien Giang.
Together with issuing instructive policies, organising information events and guiding the law enforcement, the Ministry of Industry and Trade has successfully built and operated the Call Centre (telephone hotline: 0439387846) - a system for receiving feedback from consumers. The ministry also built and test-ran a website tailored for consumer protection at
http://bvntd.vca.gov.vn. In addition to informing consumer protection laws and reflecting consumer protection activities in the country and in the world, the website also helps consumers and consumer protection societies to grasp information and cases that may affect the rights of consumers in the quickest manner.
Mr Nguyen Phuong Nam, VCA Deputy Director, said two years after the Law on Protection of Consumer Rights took effect, the law has gone into life and become a useful instrument for consumer protection in Vietnam. However, the enforcement of the Law on Protection of Consumer Rights still has certain limitations: Regulations on dispute settlement between consumers and business organisations and individuals are still incomplete; support for activities of consumer protection organisations are unclear; and support resources for consumer protection in localities are limited.
Lawyer Nguyen Van Hau, Vice Chairman of the HCM City Bar Association, said it is more than two years since the Law on Protection of Consumer Rights came into force but consumers seem to be unaware of their eight basic powers or the psychological fear of knowledgeable people becomes barriers against their entitlements. Worse, many consumers are even unaware of what the Law on Protection of Consumer Rights is and how and what they are protected. He stressed that “To better protect the legitimate rights and interests, consumers need to change their perception, proactively study provisions of the law, proactively contact relevant agencies and consumer protection or trade fraud prevention organisations to have their legitimate rights and interests protected. And, it’s time consumers changed the fear of following lawsuit and raised the sense of self-protection.”
Lawyer Hau said, according to the Law on Protection of Consumer Rights, business organisations and individuals engaged in essential goods and services specified by the Prime Minister must register business terms with competent authorities in charge of consumer rights protection. As such, thousands of businesses engaged in this type of business must follow this provision. However, after two years, VCA received 138 registration dossiers from businesses and approved only 66, meaning that thousands of enterprises engaged in essential goods and services do not register.
According to Article 11 of Decree 19/2012/ND-CP of the government, these companies will be fined VND50-70 million but no violators have been handled. Weak reactions from authorities cause companies to disrespect the law and try to sidestep responsibility when consumers complain. They not only refuse to assume responsibility, but also challenge the law.
Lawyer Phan Thi Viet Thu, Vice Chairwoman of Ho Chi Minh City Consumer Protection Association, said another current shortcoming is there is no State agency directly responsible for handling consumer complaints. Even, district courts have not received consumer complaints as stipulated by the law.
To bring the Law on Protection of Consumer Rights into life and have high effect, Mr Nam recommended the Ministry of Industry and Trade and the Provincial/Municipal Departments of Industry and Trade, which are responsible for this issue, work closely with related agencies, organisations and individuals to overcome these shortcomings and bring the law to life. They also need to complete the legal system, raise the awareness of society, enterprises and consumers, build and perfect mechanisms for the coordination of State competent agencies.
My Chau