Decree No. 02/2003/ND-CP On the Development and Management of Markets

 DECREE OF THE GOVERNMENT

On the development and management of markets

___________

THE GOVERNMENT

Pursuant to the Government Organization Law  December 25, 2001;

Pursuant to the Law on Commerce dated May 10, 1997;

At the proposal of the Minister of Trade,

DECREE:

PART I

GENERAL PROVISIONS

Article 1.  Scope and Objects Regulated

1\. This Decree stipulates on the development and management of markets, applicable to organizations and individuals participating in market activities, including areas such as planning the network of markets; investment in building new and repairing, renovating, upgrading markets; business operations and management of markets; trading goods at markets.

 2\. The markets regulated by this Decree are traditional markets organized at a designated location according to planning, meeting the needs for buying and selling goods and consumption demands of residential areas.

3\. Types such as supermarkets, commercial centers, trading centers for goods, including foreign-invested supermarkets and commercial centers, are not subject to regulation under this Decree.

Article 2. Interpretation of Terms

Some terms used in this Decree shall be understood as follows:

1. Market area: is the planned area for market activities, including the area for arranging business points, service zones (such as parking lots, warehouses, dining and entertainment areas, and other services) and the surrounding roads of the market.

2. Wholesale market: is a market with the main role of attracting and concentrating large quantities of goods from production and business sources in economic regions or industries for further distribution to other markets and circulation channels.

3. Permanent market: is a market constructed to ensure a usage period of over 10 years.

4. Semi-permanent market: is a market constructed to ensure a usage period of from  5 to 10 years.

5. Business point in the market: includes stalls, booths, kiosks, shops arranged fixedly within the market area according to the market design, having a minimum standard area of 3m²/point.

Article 3.  Classification of markets

1\. All markets must be classified according to the standards prescribed in Clause 2 of this Article.

2\. Standards for classifying markets:

a) Class 1 market:

Is a market with more than 400 business points, invested in and constructed permanently and modernly according to planning;

Located in important economic and commercial centers of provinces or cities, or wholesale markets of industries, economic regions, and regularly organized;

Has a market area suitable to the scale of market operations and provides complete services at the market: vehicle parking, cargo handling, warehouse for goods preservation, measurement services, quality inspection services, food safety and hygiene services, and other services.

b) Class 2 market:

Is a market with more than 200 business points, invested in and constructed permanently or semi-permanently according to planning;

Located in economic exchange centers of regions and regularly or irregularly organized;

Has a market area suitable to the scale of market operations and provides minimum services at the market: vehicle parking, cargo handling, warehouse for goods preservation, measurement services.

c) Class 3 market:

Are markets with fewer than 200 business points or markets that have not been invested in and constructed permanently or semi-permanently.

Mainly serve the needs for buying and selling goods of residents in communes, wards, and nearby areas.

Chapter II

REGULATION  PLANNING DEVELOPMENT  AND INVESTMENT IN MARKET CONSTRUCTION

Article 4.  Planning for market development

1\. Markets are an important part of the overall economic and social infrastructure; henceforth, the planning for economic and social development periods of localities must include market development planning. Market development planning must be established according to the principles set out in Clause 2 of this Article and approved and directed for implementation by competent authorities as prescribed.

2\. Principles for establishing market development planning:

a) Must form a system of market networks of different scales suitable to the volume of goods circulating in the area, contributing to the development of production and promoting commodity exchanges; focusing on developing markets in remote, mountainous, and island areas linked with cultural exchange requirements of ethnic groups. 

b) Develop wholesale markets by industry, particularly agricultural product and food wholesale markets, to contribute to promoting the consumption of goods in concentrated production areas of agriculture, forestry, and fisheries.

c) Market development planning must be synchronized with the planning for construction of residential areas, transportation facilities, electricity, water supply and drainage, and other public works, ensuring environmental sanitation; for Class 1 and 2 markets, the market area must be fully arranged according to the provisions of Clause 1 of Article 2 of this Decree.

3\. All projects for new construction or major renovation, repair, and upgrading of markets must be implemented strictly according to the approved planning.

Article 5. Investment in constructing markets

1. Sources of capital for investment in constructing markets include: capital from enterprises, individuals engaged in production and business, and contributions from the people; credit loan capital; state development investment capital, mainly from enterprises and individuals engaged in production and business, and credit loan capital.

2. The State encourages organizations, individuals, and businesses of various economic sectors to invest or contribute capital together with the State to construct various types of markets. 

3. State development investment capital (including central and local budget funds and non-repayable aid sources) shall only support investment in constructing certain markets as follows:

a) Specialized agricultural, food wholesale markets in concentrated production areas for agricultural, forestry, and aquatic products.

b) Markets in clusters of highland, remote, and island communes under national socio-economic development programs, poverty reduction, and settlement programs.

c) Type 1 markets according to planning at key economic-commercial locations of provinces and cities, serving as centers for commodity exchange and meeting consumption needs in large cities and towns.

4. Investors constructing markets belonging to various economic sectors shall enjoy preferential investment policies for industries listed in Clause 5, Section II, Category A (investment in constructing commercial zones and supermarkets) of the Appendix issued together with Decree No. 51/1999/NĐ-CP dated July 8, 1999, detailing the implementation of the Law on Encouraging Domestic Investment (amended).

5. Investors constructing markets have the right:

a) To mobilize capital to construct markets based on agreements with traders registered to use or lease trading points in the market and other contributions from the people in accordance with the law and specific guidance of provincial people's committees (hereinafter referred to as provincial people's committees).

b) To use land use rights and facilities within the market area under their own management as collateral for bank credit loans in accordance with current regulations to invest in major repairs, renovation, and upgrading of the market.

Article 6. Regulations on Investment Project for Constructing Markets and Arrangement of Facilities within Market Areas

1. Investors constructing new markets or making major repairs, renovations, and upgrades to existing markets must prepare an Investment Project in accordance with current regulations on construction project management and obtain approval from competent authorities in accordance with current regulations.

2. The arrangement of facilities within the market area of the Investment Project for constructing markets must comply with current construction market procedures and norms, paying particular attention to the following provisions:

a) Adequate provision of premises and equipment for fire prevention and firefighting in accordance with current regulations. 

b) Provision of water supply and drainage facilities, public sanitation areas, lighting and ventilation equipment, ensuring environmental hygiene within the market area in accordance with specified standards.

c) Provision of parking areas with appropriate size to ensure order, safety, and convenience for customers based on the number of people entering the market.

d) For Type 1 markets, Type 2 markets, and specialized wholesale markets, storage areas for goods must be provided in compliance with food safety regulations, the scale, and nature of the market. 

Chapter III

BUSINESS EXPLOITATION AND MANAGEMENT OF MARKETS

Article 7.  Regulations on Business Exploitation and Management of Markets

1. Markets invested in or supported by the State in accordance with Clause 3, Article 5 of this Decree shall be assigned by provincial people's committees to subjects organizing business exploitation and management activities in the market in accordance with the following provisions:

a) For newly constructed markets, assign or organize bidding to select enterprises to operate business exploitation and management of the market. Enterprises operating business exploitation and management of the market shall operate in accordance with Article 9 of this Decree.

b) For currently operating markets managed by Market Management Boards, gradually transition to the provisions set out above. Market Management Boards shall operate in accordance with Article 8 of this Decree.

c) For markets in clusters of highland, remote, and island communes mentioned in Point c, Clause 3, Article 5 of this Decree, they may be assigned to trade service cooperatives to organize business exploitation and management of the market.                                                       

2. In cases where markets are supported by the State for construction with contributions from organizations, individuals, and businesses of various economic sectors, provincial people's committees shall base on  the level and proportion of contributed capital to select business exploitation and management subjects (Market Management Boards, enterprises, trade service cooperatives, or establish joint-stock companies in accordance with the law). Selection methods according to the provisions of Clause 2 of this Article.

3. Markets constructed by organizations, individuals, households, and businesses of various economic sectors shall be organized by those organizations, individuals, households, and businesses to conduct business exploitation and management of the market in the form of enterprises in accordance with the law and the provisions on business exploitation enterprises in Article 9 of this Decree.

Article 8. Market Management Board  

1. The Market Management Board is a service unit with revenue, self-covering its expenses, having legal personality, its own seal, and separate accounts at the State Treasury.

2. The Market Management Board is responsible for managing state assets and activities within the scope of one or several markets; implementing contracts with traders regarding leasing and using business points; operating market services; organizing fire prevention and firefighting, environmental sanitation, public security, and food safety within the market's scope; drafting Market Regulations according to Article 10 of this Decree to submit for approval by the competent People's Committee based on market management levels; organizing the implementation of Market Regulations and handling violations thereof; managing market operations and organizing the development of market activities; compiling market trading activity reports and regularly reporting to relevant state management agencies as guided by the Ministry of Commerce.

Article 9. Business Enterprises Exploiting and Managing Markets

Business enterprises exploiting and managing markets are enterprises established, registered for business, and operating in accordance with the law, responsible for organizing the implementation of the following regulations:

1. Operating market services.

2. Ensuring fire prevention and firefighting, environmental sanitation, public security  and food safety within the market.

3. Drafting Market Regulations according to Article 10 of this Decree to submit for approval by the competent People's Committee based on market management levels; organizing market operations according to Market Regulations and handling violations thereof.  4. Arranging and organizing business areas to meet requirements for order, sanitation, commercial civilization, and the needs of traders operating in the market.

5. Signing contracts with traders regarding leasing and using business points in the market and other services as stipulated by law.

6. Organizing economic information dissemination; promoting policies, legal regulations, and obligations towards the state of traders operating in the market as guided by functional agencies.

7. Compiling market trading activity reports and regularly reporting to relevant state management agencies as guided by the Ministry of Commerce.

Article 10. Market Regulations

1. All markets must have Market Regulations applicable within their scope. Market Regulations are developed based on the provisions of this Decree and current laws, including the following main contents:

a) Rights and obligations of traders operating in the market.

b) Provisions on goods and services traded in the market.

c) Provisions on persons conducting transactions and purchasing goods in the market.

d) Provisions on ensuring fire safety.

e) Provisions on ensuring public security and order in the market.

f) Provisions on ensuring environmental sanitation and food safety.

g) Requirements for building a civilized commercial market.

h) Requirements for organizing and participating in cultural and social activities in the market.

i) Provisions on handling violations in the market.   

2. Market Regulations must be publicly posted clearly within the market's scope and disseminated to all traders operating in the market.

3. All organizations and individuals participating in trading, exchanging goods, and services within the market's scope must comply with Market Regulations.

4. The Ministry of Commerce issues model Market Regulations to standardize the drafting and application of Market Regulations for all markets. Provincial People's Committees are responsible for specifying clauses in the model Market Regulations to suit local practical conditions.

4. The Ministry of Commerce shall issue a Model Regulation to standardize the establishment of market regulations and apply it to all markets. The provincial People's Committee shall be responsible for specifying the provisions of the Model Regulation to suit the actual conditions of their locality.

Article 11. Management of business points at markets

1. Business points at markets include the following types:

a) Type allocated to traders for use in business in cases where there is a capital contribution advance contract for market construction investment or payment for use in one lump sum within a certain period after the market is completed.

b) Type rented to traders for business.

2. The Market Management Board or the enterprise exploiting the market must:

a) Develop a plan for arranging and organizing trades and using business points at the market, and submit it for approval by the competent People's Committee.

b) Implement tendering regulations when the number of traders registering to use or rent exceeds the number of business points that can be arranged at the market according to the approved plan.

c) Sign contracts with traders using or renting business points in accordance with the provisions of the law.

3. The Provincial People's Committee shall specify the detailed regulations on the use, rental, duration, and management measures for business points at markets in accordance with the nature of each type of market and the specific conditions of the locality.   

Article 12. Regulations on business activities at markets

1. Traders who have registered to engage in trades suitable for the scope of each type of market are entitled to enter the market for business after signing a business point usage contract or a business point rental contract with the Market Management Board or the enterprise exploiting and managing the market.

2. Traders conducting business at markets must comply with the market's trade arrangement and organization plan.

3. In addition to complying with the provisions of the law, traders conducting business at markets must strictly adhere to the Market Rules and be subject to the management of the Market Management Board or the enterprise exploiting and managing the market.

4. Traders may transfer their business points or lease them to other traders during the contract period.

5. Traders with business points at markets as stipulated in Point a Clause 1 Article 11 of this Decree may use their business points as collateral for loans from commercial banks in accordance with the provisions of the law.

6. Small producers who self-consume their products (farmers, artisans, etc.) and small traders, street vendors, and snack sellers shall be arranged to sell goods in designated areas for non-permanent traders in the market and must comply with the Market Rules.

7. Goods and services traded at markets:

Goods and services traded at markets are those not included in the list of prohibited trading items under the law and not among the following categories:

a) Goods containing radioactive substances and ionizing radiation equipment.

b) Explosive materials, flammable liquids such as gasoline (except kerosene for lighting), liquefied petroleum gas (LPG), compressed gases.

c) Pesticides listed in the restricted trading category.

d) Hazardous chemicals listed in the conditional trading category.

To ensure order and civilized commerce, goods traded at markets should be arranged by commodity group and not placed close together goods that adversely affect each other.

8. Handling violations at markets:

a) Violations of the law at markets are handled in accordance with current legal provisions.

b) Violations of the Market Rules are handled by the Market Management Board or the enterprise exploiting the market in accordance with the provisions of the Market Rules.                             

Chapter IV

STATE MANAGEMENT OF MARKETS

Article 13.  Contents of state management of markets

1. Developing planning, plans, and directions for market development in each period in line with economic and social development planning and direction at each locality and region, meeting the needs of production, circulation of goods, and consumption  of the people.

2. Issuing policies on market investment, construction, exploitation, and management activities.

3. Managing state-invested markets in accordance with the regulations on分级任务的翻译已经完成并直接输出了结果。请确认是否需要进一步处理或有其他具体需求。根据您的指示，这是最终的翻译结果，符合官方政府文件的要求。

4. Direct and guide the Market Management Boards, business enterprises operating and managing markets on market management policies and practices.

5. Organize propaganda work to disseminate the Party's guidelines and policies, state policies, and laws to everyone within the market premises.

6. Organize inspection, commendation, and handling of violations related to market activities.

Article 14. Responsibilities of Ministries and Sectors

1. Ministry of Commerce:

a) Take the lead in coordinating with relevant ministries and sectors to study and submit to the Government for issuance, amendment, and supplementation of policies and directions on the development and management of market activities.

b) Take the lead in coordinating with the Ministry of Home Affairs to guide the functions, tasks, powers of the Market Management Board as stipulated in Article 8 of this Decree.

c) Issue Model Market Regulations and guiding documents on managing market business activities.

d) Specify detailed reporting systems for market operations.

đ) Direct the organization of vocational training for market management staff.

e) Direct the implementation of rewards, inspections, and handling of violations of laws and market regulations.   

2. The Ministry of Planning and Investment:

a) Guide and direct provincial people's committees to develop planning for market development and construction according to the provisions of Chapter II of this Decree.

b) Guide and direct provincial people's committees to develop annual plans and review plans for investment in constructing markets funded or supported by the State according to the provisions of Clause 3, Article 5 of this Decree.

c) Guide and direct the implementation of preferential policies for organizations and individuals participating in market construction investment according to this Decree.     

3. Ministry of Finance:

Guide the financial mechanism applicable to the Market Management Board and businesses operating and exploiting markets according to this Decree.

4. Ministries, sectors, and other state agencies have the responsibility to guide and direct the implementation of relevant provisions of this Decree.                                                       

Article 15. Responsibilities of People's Committees at all levels

People's Committees at all levels shall be responsible for directing the establishment of Market Development Plans, managing investment in market construction according to the分级授权关于基本建设的投资和建设，执行市场管理国家职能，并实施以下规定：

1. Provincial People's Committee:

a) Decide on entrusting or organizing tendering to select businesses operating and exploiting markets.

b) Decide on establishing and defining the functions, tasks, powers, and organizational structure of the Market Management Board for Class 1 markets (funded or supported by the State for construction) currently operated by the Market Management Board.

c) Specify the use and rental of trading points in markets according to the provisions of Article 11 of this Decree.  d) Specify the Market Regulations based on the Model Regulations issued by the Ministry of Commerce and approve the regulations of Class 1 markets.

d) Specify the handling of violations of Market Regulations.

2. District and County People's Committees:

a) Decide on establishing and defining the functions, tasks, powers, and organizational structure of the Market Management Board for Class 2 and Class 3 markets (funded or supported by the State for construction) currently operated by the Market Management Board.

b) Approve the Market Regulations of Class 2 and Class 3 markets.

3. Commune and Ward People's Committees:

Are responsible for managing Class 3 markets and cooperate with provincial and county-level agencies to manage markets within their jurisdiction.

REWARD AND HANDLING OF VIOLATIONS

Chapter V

Organizations and individuals who achieve outstanding results in building, developing, and managing market activities shall be rewarded according to the Government's regulations.  VIOLATION

AND IMPLEMENTATION

Article 16.  Awards

State officials, organizations, and individuals engaged in market business and persons entering markets to buy and sell goods who violate the provisions of this Decree shall be disciplined, administratively handled, or criminally prosecuted according to the severity of the violation as prescribed by law.      

Article 17. Handling Violations

1. This Decree shall take effect immediately upon its promulgation for newly constructed markets not yet in operation and markets that will be invested in or renovated.

Article 18. Implementation Organization

2. For markets currently in operation, the Ministry of Commerce shall guide and direct the application of this Decree's provisions on the principle of ensuring stable market operations and gradually implementing the full scope of this Decree.                                 

3. Provincial People's Committees need to focus on directing the early completion of the following tasks:

a) Develop, supplement, and adjust Market Development Plans according to the provisions of this Decree.

b) Prevent and stop the spontaneous emergence of markets or construction not in accordance with the plan; must have plans and measures to eliminate markets not included in the plan and spontaneously emerging markets, first and foremost those held on road shoulders and sidewalks affecting traffic safety, environmental hygiene, and public order.

c) Implement the provisions of Article 7 of this Decree.

d) Arrange and allocate staff for the Market Management Board for markets currently operated by the Market Management Board according to the guidance of the Ministry of Commerce and the Ministry of Home Affairs; implement national regulations on reducing personnel quotas.

4. The Ministry of Commerce shall draft and issue guiding documents on the organization and management of river markets, sea markets, border markets, customs clearance markets, and markets located in economic zones adjacent to customs gates based on the provisions of this Decree and related regulations, consistent with agreements signed with neighboring countries.  

1. This Decree shall take effect sixty days from the date of signature.

Article 19.  Implementation Provisions

2. Ministries and sectors responsible for implementing Article 15 must issue guiding documents for the implementation of this Decree within the specified time limit.

3. Abolish other documents previously issued by ministries, sectors, and people's committees at all levels regarding the organization and management of markets before the issuance of this Decree.

4. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, and Chairpersons of provincial and centrally-administered city people's committees are responsible for enforcing this Decree. /./

4. The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, and Chairpersons of provincial and municipal People's Committees directly under the Central Government shall be responsible for implementing this Decree. /./