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Vietnamese Telecom Market: Competition and Monopoly

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Vietnamese Telecom Market: Competition and Monopoly
FOREIGN TRADE UNIVERSITY

An Insight into Market Structure
Vietnamese Mobile Telecom Market as a Fight between Monopoly and Competition

Student’s name: Vu Thi Ngoc Thoa
Class: A18 – CLC TCNH – K50
ID Number: 1113340224
Time of completion: June 2012

Table of Contents

Introduction | 3 | Part I: Market Overview | 4 | 1. Vietnamese Mobile Telecom Market: A Brief History | 4 | 2. How the Market Pie Is Divided Today | 5 | Part II: Market Trends | 7 | 1. Viettel’s Acquisition of EVN Telecom | 7 | 2. Beeline Disappeared in the Market | 8 | 3. MobiFone and Vinaphone to be Merged | 9 | 4. What Are the Trends? | 10 | Part III: Consumers: Gain or Lose? | 11 | 1. Competition Makes Consumers Better off | 11 | 2. The Trend of Monopolisation: Would Consumers Suffer? | 12 | Conclusion | 13 | Reference | 14 |

Introduction

Together with breakthroughs in technology, mobile telecom has been showing great innovations and bringing enormous benefits to consumers. Vietnamese mobile telecom market, through only a few decades of development, has proven to be an extremely potential industry. With analysis from the microeconomic standpoint, I would like to clarify some notable matters seen in Vietnamese mobile telecom market today.
This essay is organised in three parts: * Part I: Market Overview. This part provides brief information about development history of the market and what the situation of the market is nowadays. * Part II: Market Trends. This part deals with recent movements in Vietnamese mobile telecom market. * Part III: Consumers: Gain or Lose? The final part of this essay analyses the benefits and losses that consumers face as a result of recent changes in the market.

PART I – Market Overview

1. Vietnamese Mobile Telecom Market: A Brief History
As a developing country, Vietnam has its mobile telecom market started quite late. Though the demand for mobile

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