The Vietnam Automobile Manufacturers Association (VAMA), which is dominated by eleven foreign-invested carmakers, should be punished for violations of the Competition Law when they join hands together to raise retail car prices while the price tends to decrease, Pham Chi Lan, a member of the Prime Minister’s Research Committee, said.
“The Competition Law completely bans members of an association from collaborating together to do harms to consumers,” Mrs Lan said at an event to protest the VAMA’s announcement to increase retail car prices in the country from January 1, 2006 when the special consumption tax is raised to 50 per cent from the current 40 per cent,
Lawyer Pham Lien Chinh, from Hanoi, added the VAMA’s announcement has violated the Competition Law, explaining that this announcement has made consumers doubtful of the price movement and will lead them to make purchasing decisions that are good to carmakers.
“Individuals, associations and the Ministry of Trade’s Competition Management Department can sue VAMA for the violation of the Competition Law,” he said.
Ms Dinh Thi My Loan, from the Competition Management Department, which can sue VAMA if it finds VAMA is doing harm to a majority of customers, said “Investigation should be made before concluding whether VAMA violates the Competition Law or not.”
According to an official from the Ministry of Industry, it is not easy to allege VAMA of violating the Competition Law if they say the price rise is due to the special consumption tax rise.
At present, the fledging automotive industry of Vietnam is strongly dominated by foreign-invested automakers.
VAMA comprises of eleven foreign-led carmakers, including Toyota, Ford, Vinastar (Mitsubishi), VMC (Mazda), Vidanco (Daihatsu), Hino, Mercedes-Benz, Vidamco (GM-Daewoo), Mekong, Visuco (Suzuki) and Isuzu, and five domestic firms Samco, VEAM, Vinacoal, Thaco and Vinaxuki.
VNexpress
Vietnamese
