Vnu journal of Science: Policy and Management Studies, Vol. 3, No. (2017) 21-29

particular market. Taking the 30% market share

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Unit 1

particular market. Taking the 30% market share 
as a threshold for the application of the 
Competition Law is explained that this 
benchmark is applied by many countries around 
the world. However, many studies have shown 
this to be the raw determinant of market 
dominant position in the telecommunications 
market [6]. 
The objective of this paper is to use 
internationally popular assessment methods to 
analyze market concentration and the existence 
of significant market power in the Vietnam’s 
mobile services market. This study, on the one 
hand, is practically an important reference for 
Vietnamese telecoms regulators, competition 
regulators as well as firms participating in the 
market. On the other hand, this study also adds 
to the empirical literature on the topic for 
comparative studies.
This paper proceeds as follows. Section 2 is 
a brief review of empirical studies on market 
concentration and market competition. Section 
3 presents an overview of the Vietnam’s mobile 
market as a basis for the analysis of sections 4 
and 5. Section 4 includes the calculation results 
of the Hirschman-Herfindahl index (HHI) and 
the estimated model of price elasticity of 
demand in Vietnam mobile services market 
which are comparable to other relevant studies. 
Section 5 gives some discussion of the results 
obtained before a conclusion is given in the 
last section. 
2. A brief review of literature
In economics, market concentration is a 
function of the number of firms and their 
respective shares of the total production or sales 
in a market. It measures the extent of 
domination of production or sales by one or 
more firms in a particular market and is often 
used as a measure of competition. To evaluate 
market concentration and the existence of 
market dominating companies, researchers and 
regulatory bodies often derive from market 
shares. Enterprises with large market shares are 
more likely to control the prices and volumes of 
services provided in the market and thus gain 
higher returns. However, the market share only 
provides discrete information of each firm, so 
some aggregate indicators such as the C4 (4 
firm concentration ratio) and Hirschman-
Herfindahl (HHI) indices have been released. 
Market concentration indexes suggest if a 
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