OECD CONFERENCE ON “CONSUMER

EMPOWERMENT AND RESPONSIBILITY

BUSINESS CONDUCT”

CONSUMER PROTECTON IN
VIETNAM

Nguyen Dinh Tai

Central Institute for Economic Management
 1. Problems with consumer
protection in Vietnam
 Customers in Viet Nam often have to suffer from
unsafe poor-quality products which break down
just after purchase and are sometimes life-
threatening. Even when dealing with life-
threatening products, consumers have no legal
recourse for protection, let alone compensation.
 A number of high-profile cases have recently
come to light in which consumers have bought
fake, poor quality and/or goods ranging from
vegetables sprayed with pesticides, cosmetics
containing toxic chemicals and fake medicines.
 1. Problems with consumer
protection in Vietnam
 The Ministry of Science and Technology of Vietnam
reported in September, 2008 that over 30 gasoline stations
in the country had been caught overcharging for fuel or
selling adulterated gas mixed with anything from kerosene
and water to mud and booze. Many had rigged their scales
to show higher amounts than had been dispensed.
 But commercial fraud does not end there. The ministry also
said that over 93 percent of stylized crash-helmets in the
domestic market were unsafe for motorcyclists. All this on
top of the fact that market control agencies have blamed
kidney stone cases in several Vietnamese children on
melamine-tainted milk.
 1. Problems with consumer
protection in Vietnam
 A survey by the Viet Nam Standards and Consumers Association
(Vinastas) in August 2008 showed that only 41 percent of
consumers in 10 cities and provinces in Vietnam were fully aware
of their rights while half believed it was the job of the
government or watchdog organizations to make sure their rights
were protected.
 According to Vinastas, this organization receives 1,000
complaints and petitions per year, while the Consumer Protection
Unit has received perhaps 100 complaints in the last 5 years. The
fact is most people don’t know who to turn to for help, and of
those that do, many believe these official bodies are ineffective.
Vinastas had settled about 70 to 80% of the 1,000 complaints
filed with it last year out of court. The number sounds good, but
too small.when considering Vietnam’s 87- million plus
population.
 1. Problems with consumer
protection in Vietnam
 Unfair trade practices were rife throughout nearly
all sectors in Vietnam. The Association estimated
the average consumer lost between 8 to 10 percent
of the value of their purchases so far this year due
to unfair practices.
 Greedy and irresponsible traders are rarely
brought to court because consumers who complain
about getting cheated fail to provide even the
simplest of evidence, such as a receipt.
 1. Problems with consumer
protection in Vietnam
 The relevant agencies have always called on consumers to
“wise up”. However, it is not easy to become a wise
consumer, and it is very important to have the necessary
modern facilities to identify the quality of products. To
become a wise consumer, consumers should firstly learn
about their rights when making transactions to create a
combined strength among the community. In fact, many
recent scandals over food safety and hygiene have shown
the vital role of consumers in exercising their rights.
 In brief, consumer rights in Vietnam have been
seriously violated in various ways. So far, however, no
penalties or sanctions have been imposed on enterprises
and producers that break the law.
 2. Ineffective current Ordinance on
consumer protetion
 Legislation on protecting consumer rights in Vietnam is
Ordinance on consumer protection which has been
effective since October 1, 1999. This legal document
clearly stipulates that consumers have eight basic rights,
including satisfaction, safety, information, choice,
compensation, education and having a voice and a healthy
environment. If their rights are violated, consumers can
complain and ask for compensation according to legal
regulations.
 Nevertheless, a recent survey conducted by the Vinatas
showed that nearly half of Vietnamese consumers are not
fully aware of their basic rights, while the remaining
consumers do not know or do not care about them.
 2. Ineffective current Ordinance on
consumer protetion
 In fact, complicated formalities have prevented people from
enjoying their rights as consumers. Furthermore, it is not easy for
consumers to provide evidence of violations. Their purchasing
habits such as not asking for receipts or buying goods in flea
markets also make it extremely difficult for consumers to exercise
their rights.
 The main reason is that under the ordinance, consumer rights are
defined too broadly to be feasibly implemented. Provision 8 of the
Ordinance, for example, states that consumers are ensured their
lives, health and environment will be safe when using goods and
services. However, no regulations exist to specifically implement
the provision; there are no guidelines on how exactly consumers
should be ensured of their safety. Therefore, these provisions seem
to be only meaningful in theory. Moreover, there is lack of strong
punitive measures for violators.
 2. Ineffective current Ordinance on
consumer protetion
 According to Provision 16 of the Ordinance,
manufacturers and service suppliers have a responsibility
to settle all complaints and petitions from consumers
concerning their products and services in terms of
standard, price, quality and quantity. No provision exists
however to bring sanctions on those that do not comply
with provision 16.
 The shortcomings of these provisions meant Vietnamese
consumers get no protection so far. Without effective laws,
the consumer will always lose and they have no choice but
to forget it and move on.
 2. Ineffective current Ordinance on
consumer protetion
 Moreover, there should be an agency in charge of protecting
consumer rights. At present, at the central level, the
Consumer Protection Board of the Competition
Management Department under the Ministry of Industry and
Trade is the only agency responsible for protecting
consumer rights. However, the board only has seven
employees, so it is difficult for them to protect the rights of
more than 86 million consumers. The Vietnam Standards
and Consumer Protection Association currently has
branches in 30 out of the 63 provinces and cities nationwide,
but they mainly deal with violations through negotiation and
conciliation. However, when public health and safety is put
at risk, those in charge should be prosecuted.
3. How to improve the situation
 All producers must be educated about their
social responsibility, as well as producing
safe food and a good distribution channel
for safe food are musts.
 State agencies in charge of food security
must help the government to coordinate
food security control activities in the
distribution of food to society.
3. How to improve the situation
 In Vietnam, to put regulations on consumer protection into
practice, the relevant agencies should consult with
consumers on the law and make them better aware of their
rights.
 The law on protecting consumers’ rights which is being
drafted will be submitted to the National Assembly and
expected to be approved by 2010 should focus on boosting
the role of associations in protecting consumers. The law
will define clearly and specifically the rights of consumers
and the methods of ensuring those rights; the
responsibilities of manufacturers and service suppliers and
the sanctions to punish violators.
3. How to improve the situation
 The law has to force firms to compensate
consumers they swindle by overcharging,
mislabeling or selling counterfeit goods.
 Moreover, the functions and tasks of agencies who
settle consumers’ complaints and petitions will
also be defined.
 Local buyers need to collect evidence and
officially report their complaints if they want to
challenge businesses that rip people off.
3. How to improve the situation
 The consumer boycott of bad products can make a serious
impact on producers, which are now forced to change their
behaviour. It is obvious that if consumers know how to use
their rights and join efforts to boycott poor quality products,
producers and retailers will have to respect them accordingly.
On the contrary, if consumers lack a knowledge of the laws,
service providers will make use of this and take advantage of
them.
 In other countries, consumers have the power and the rights to
boycott poor quality products. They also know how to use
their rights to force enterprises to adjust their policies and
fulfill their responsibilities. Apart from a synchronized legal
system, consumers in these countries also receive support
from agencies, such as the Consumer Protection Association.
 THANK YOU FOR ATTENTION
WHAT CONSUMER WANTS?
 QUALITY PRODUCTS
 EFFICIENT SERVICES
 TIMELY DELIVERY
 EFFICIENT AFTER SALE SERVICE
 TRUTHFUL ADVERTISEMENTS
 REASONABLE PRICING STRUCTURE
 ACCURACY IN WEIGHTS AND MEASURES
WHAT CONSUMER GETS ?
 QUALITITATIVELY DEFICIENT
GOODS OR SERVICES
 QUANTITATIVELY DEFICIENT
GOODS OR SERVICES
 EXCESSIVE PRICES
 INSUFFICIENT INFORMATION
 MISLEADING ADVERTISEMENTS
 UNFAIR TRADE PRACTICES
 CONSUMER IS KING
 A CONSUMER IS THE MOST IMPORTANT
VISITOR ON OUR PREMISES. HE IS NOT
DEPENDENT ON US. WE ARE DEPENDENT
ON HIM. HE IS NOT INTERRUPTION IN OUR
WORK – HE IS THE PURPOSE OF IT. WE ARE
NOT DOING HIM A FAVOUR BY SERVING
HIM. HE IS DOING US A FAVOUR BY
GIVING US AN OPPORYUNITY TO SERVE
HIM.
 CONSUMER RIGHTS
 1. RIGHT TO BASIC NEEDS
 2. RIGHT TO SAFETY
 3. RIGHT TO INFORMATION
 4. RIGHT TO CHOICE
 5. RIGHT TO REPRESENTATION
 6. RIGHT TO REDRESS
 7. RIGHT TO CONSUMER EDUCATION
 8. RIGHT TO HEALTHY ENVIRONMENT
1. RIGHT TO BASIC NEEDS
 TO HAVE BASIC GOODS AND
SERVICES WHICH GUARANTEE
SURVIVAL, LIKE FOOD, CLOTHING,
SHELTER, HEALTH CARE,
EDUCATION.
 2. RIGHT TO SAFETY
 TO BE PROTECTED AGAINST
PRODUCTS, PRODUCTION PROCESS
AND SERVICES WHICH ARE
HAZARDOUS TO HEALTH OR LIFE.
3. RIGHT TO INFORMATION
 RIGHT TO BE GIVEN THE FACTS
THAT ARE NEEDED TO MAKE
INFORMED CHOICE OR DECISION. TO
BE PROTECTED AGAINST
MISLEADING ADVERTISEMENTS OR
LEBELLING.
 4. RIGHT TO CHOICE
 RIGHT TO HAVE ACCESS TO
VARIETY OF PRODUCTS AND
SERVICES AT COMPETITIVE PRICES
WITH AN ASSURANCE OF
SATISFACTORY QUALITY AND
SAFETY.
 5. RIGHT TO
REPRESENTATION
 RIGHT TO BE REPRESENTED SO THAT
THE CONSUMERS INTERESTS
RECEIVE FULL AND SYMPATHETIC
CONSIDERATION IN FORMULATION
AND EXECUTION OF ECONOMIC
POLICIES
 6. RIGHT TO REDRESS
 RIGHT TO BE COMPENSATED FOR
MISREPRESENTATION, SHODDY
GOODS, UNSATISFACTORY SERVICES
 7. RIGHT TO CONSUMER
EDUCATION
 RIGHT TO ACQUIRE KNOWLEDGE
AND SKILLS TO BE AN INFORMED
CONSUMER THROUGHOUT LIFE
 8. RIGHT TO HEALTHY
ENVIRONMENT
 RIGHT TO A PHYSICAL
ENVIRONMENT THAT WILL
ENHANCE THE QUALITY OF LIFE
 CONSUMER
RESPONSIBILITIES
 1. CRITICAL AWARENESS
 2. ACTION
 3. SOCIAL CONCERN
 4. ENVIRONMENTAL AWARENESS
 5. SOLIDARITY
 1. CRITICAL AWARENESS
 TO BE MORE ALERT AND
QUESTIONING ABOUT THE PRICE
AND QUALITY OF GOODS AND
SERVICES WE USE.
 2. ACTION
 TO ASSERT AND ACT TO ENSURE
THAT WE GET A FAIR DEAL.
 3. SOCIAL CONCERN
 TO BE AWARE OF IMPACT OF OUR
CONSUMPTION ON OTHER CITIZENS,
SPECIALLY DISADVANTAGED OR
POWERLESS GROUPS.
 4. ENVIRONMENTAL
AWARENESS
 TO UNDERSTAND THE
ENVIRONMENTAL CONSEQUENCES
OF OUR CONSUMPTION. TO
CONSERVE NATURAL RESOURCES
AND PROTECT THE EARTH FOR
FUTURE GENERARTIONS.
 5 .SOLIDARITY
 TO ORGANISE TOGETHER AS
CONSUMERS TO DEVELOP THE
STRENGTH AND INFLUENCE TO
PROMOTE AND PROTECT CONSUMER
INTERESTS.
 RAISING CONSUMER
AWARENESS
 1. GOVERNMENT
 2. BUSINESS
 3. MEDIA
 4. SCHOOLS AND COLLEGES
 5.VOLUNTARY ORGANISATIONS
 1. GOVERNMENT
 SUPPORT TO CONSUMER
ORGANISATIONS
 ENACT CONSUMER FRIENDLY LAW
AND ENSURE ENFORCEMENT
 CONSUMER POLICY
 CITIZEN’S CHARTERS
 OMBUDSMEN
 2. BUSINESS
 CODE OF CONDUCT AND SELF-
REGULATION
 IN-HOUSE CONSUMER SERVICE CELL
 CORPORATE SOCIAL
RESPONSIBILITY
 3. MEDIA
 ADEQUATE COVERAGE TO ACTIVITIES OF
CONSUMER ORGANISATIONS
 REGUALAR COLUMN ON CONSUMER EDUCATION
 SPECIAL SUPPLEMENTS ON CONSUMER
PROTECTION
 INTERVIEWS WITH PEOPLE ENGAGED IN
CONSUMER GUIDANCE ACTIVITIES
 PUBLICATION OF JUDGMENTS ON CONSUMER
PROTECTION CASES
 REFUSING TO RELAESE MISLEADING
ADVERTISEMENT
 4. SCHOOLS AND
COLLEGES
 INCORPORATING CONSUMER
EDUCATION AT SCHOOL AND
COLLEGE LEVEL.
 BASICS OF CONSUMER PROTECTION
AT SCHOOL LEVEL
 LEGAL ASPECTS OF CONSUMER
PROTECTION AT COLLEGE LEVEL
 5. VOLUNTARY
ORGANISATIONS
EDUCATION & TRAINING
COMPLAINTS HANDLING
PRODUCT TESTING
RESEARCH & SURVEY
LOBBYING & ADVOCACY