Oligopoly in Vietnam

http://english.vietnamnet.vn/fms/business/56715/report-says-oligopoly-exists-in-6-business-fields.html

This article explores some business fields in Vietnam that are under oligopoly, leading to bad competition. 6 oligopoly business fields, detergent, vegetable oil, trucks, insurance, trucks and pay-TV, have the three biggest enterprises “hold more than 65 percent of the market share”. The price control caused by the oligopoly of these businesses will take advantage of their power, leading to unhealthy competition and hurting small business. The dominant of foreign to domestic enterprises is also mentioned in this article.

 

This article goes well with chapter 15 Cartels, Oligopolies, and Monopolistic Competition where Oligopolies and its effects are discussed.

1 Comment »

  1. harchikp Said,

    December 15, 2015 @ 12:01 am

    This article illustrates how an oligopoly can become so massive within a country. It makes one wonder how much consumers would benefit if the government would break up this oligopoly. I would predict healthy competition would drive prices down, making these services more convenient and affordable for consumers.

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