Decision No. 12/2007/QĐ-BCT Approving the overall planning for the development of the market network nationwide until 2010 and orientation until 2020

Pursuant to …;

Approving the overall plan for the development of market networks nationwide until 2010 and orientation until 2020

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THE MINISTER OF INDUSTRY AND TRADE

Pursuant to Resolution No. 01/2007/QH12 dated July 31, 2007 of the National Assembly of the Socialist Republic of Vietnam, the twelfth session, first meeting, concerning the organizational structure of the Government and the number of Deputy Prime Ministers for the twelfth term;

Pursuant to Decree No. 178/2007/NĐ-CP dated December 3, 2007 of the Government stipulating the functions, tasks, powers, and organizational structure of Ministries and ministerial-level agencies;

Pursuant to Decree No. 92/2006/NĐ-CP dated September 7, 2006 of the Government on planning, approving, and managing the overall plan for economic and social development;

Pursuant to Decision No. Decision No. 559/QĐ-TTg dated May 31, 2004 of the Prime Minister approving the Program for Market Development until 2010;

Pursuant to Decision No. 27/2007/QĐ-TTg dated February 15, 2007 of the Prime Minister approving the Project "Developing Domestic Trade until 2010 with Orientation until 2020";

Pursuant to Circular No. 6428/VPCP-KTTH dated November 7, 2007 of the Government Office conveying the Prime Minister's opinion authorizing the Minister of Industry and Trade to approve the project on infrastructure planning for trade development;

Pursuant to the Minutes of the Meeting for Reviewing and Approving the Results of the Project "Overall Plan for Developing Market Networks Nationwide until 2010 and Orientation until 2020" held on August 9, 2007;

Pursuant to the Report No. 333/VNCTM dated November 30, 2007 of the Director of the Institute of Trade Research regarding the market network development plan nationwide until 2010 and orientation until 2020;

Considering the proposal of the Director of the Department of Planning and Investment.

DECISION:

Article 1. Approves the Overall Plan for Developing Market Networks Nationwide until 2010 and Orientation until 2020 with the main contents as follows:

1. Development Orientation

- Diversifying various types and levels, multiple functions, combining traditional and modern elements in developing market networks.

- Building and developing market networks that are appropriate to the level of economic development, economic structure, transaction scale, flow of goods, transportation conditions, resources, and historical, cultural, customary, and traditional characteristics of localities.

- Reasonably distributing market networks with focal points, aligning with the economic and social development plans of localities and sectors.

- Standardizing, organizing, and modernizing in developing market networks.

- The State will continue to support investment in market development while accelerating socialization in market network development.

- Developing market networks requires coordinated and harmonious promotion with the development of commodity economy, reform of circulation mechanisms, and increased income for farmers.

2. Development Goals

2.1 General Goals

- Developing market networks to meet consumption needs and improve living standards of the people, increase farmers' income, and ensure stable development of commodity markets.

- By 2010, the national market network will have a reasonable structure and distribution; the level and methods of transactions will be improved, especially in wholesale agricultural product markets; market management will be regulated, creating a healthy competitive environment; promoting chain business expansion to markets; reducing and regulating traditional trading markets.

- By 2020, building a comprehensive market network including community markets operating under the chain distribution model; wholesale agricultural product markets with full functions, rational pricing mechanisms, and mainly implementing auction sales; wholesale and retail markets in provincial and centrally-administered city economic centers (hereinafter referred to as provinces), forming a smooth circulation network, regulated management, rational structure, and adequate facilities. In the market network, principles such as "market formation of prices, state regulation of the market" will be implemented; reasonably distributing the scale, structure, and number of markets; developing a unified and diverse market network in terms of type and level, forming network transactions centered around wholesale agricultural product markets, promoting various retail agricultural product forms such as convenience stores, retail markets, supermarket chains...

2.2 Development Goals for Market Networks on Commodity Markets

a) For the Agricultural Product Market

- Gradually building and forming an orderly, competitive, and unified agricultural product market network to create a large and unified national agricultural product market, connecting with international agricultural product markets.

- Forming a wholesale agricultural product market network with modern operational mechanisms. Completing information provision, aggregation, and distribution functions, enhancing the role of wholesale markets in price formation, innovating transaction methods, closely integrating modern circulation methods with wholesale agricultural product markets.

- Implementing food safety standards, leveraging quality and price advantages for agricultural products, protecting consumer and producer interests.

- Establishing a market transaction structure and method suitable for the characteristics of each region and product type. For rice, based on the expanding rice wholesale markets in production areas, gradually form a futures trading market. For fresh agricultural products, hygiene and safety standards need to be standardized in circulation, based on domestic and foreign market demands to timely adjust structures, ensuring supply of high-quality agricultural products, establishing and implementing cleanliness standards for agricultural product markets.

b) For the Consumer Goods Market

- Develop a network of consumer industrial goods markets to ensure the main goal is to form convenient and highly efficient trading points for buying and selling activities, enhancing domestic demand expansion. Rural daily consumer industrial goods markets mainly aim at expanding business chains to provide convenient goods supply for residents, intensifying the exploitation of market infrastructure to meet the continuously increasing material and cultural life needs of rural residents, thereby promoting domestic consumption demand.

- Develop a network of consumer industrial goods markets in accordance with the level of economic development in each region, suitable with the orientation of developing commodity market systems to have business forms that meet different consumption demands. For rapidly developing areas, modern distribution systems and business chains will develop quickly, so it is necessary to focus on forming large-scale consumer industrial goods markets in the region and gradually enhance market competition. For moderately developed areas, it is necessary to quickly develop the market network to promote the formation of competitive distribution enterprises, creating factors and conditions for regional market development. For underdeveloped areas, along with adjusting rural production structures and increasing the volume of goods, it is necessary to quickly build rural market infrastructure, promptly change the backwardness of rural markets, and pay attention to leveraging the supporting role of traders from major cities to form consumer industrial goods supply chains down to village markets.

3. Orientation for Development

3.1 Orientation for Developing Market Forms According to Geographic Areas

- Invest in upgrading and developing retail people's markets in urban residential areas and in villages and clusters of villages in rural and mountainous areas.

+ People's markets in urban areas: limit new construction; renovate small markets that do not meet standards into modern retail formats such as supermarkets, food stores, convenience stores; upgrade them into retail agricultural product and food markets in residential areas.

+ People's markets in rural and mountainous areas: the market network remains the main channel for commodity circulation during the period up to 2020; each market will be the nucleus for gathering and concentrating comprehensive exchange and sales activities in each residential area. Encourage an increase in the number of households operating in the market and the daily sales hours of households. Focus on investment in building market infrastructure. Link market construction with rural area planning, rural residential planning, and trade development planning in specific areas. The development of market architectural space must follow a reasonable structure and be consistent with the characteristics of each type of market.

- Upgrade and expand, construct new comprehensive wholesale and retail markets of category I in provincial economic centers.

+ Renovate, upgrade, and expand existing markets and construct new ones in provincial economic centers.

+ Each comprehensive wholesale and retail market of category I nationwide is developed as the nucleus to form provincial commercial centers, serving both the role of distributing goods to retail markets within the province and being provincial integrated commercial-service centers.

- Upgrade, renovate, and construct new border village markets, border gate markets, and markets located in border economic zones according to planning. Focus on measures to form habits of commodity exchange through markets among mountain residents and attract people to participate in market activities. Encourage and support businesses to expand their networks to border markets. Preserve and promote the cultural characteristics of mountainous and border regions in the operation of border market networks.

- Continue to concentrate on completing the construction and putting into use seven large wholesale agricultural product markets in major production areas and in Hanoi City, Ho Chi Minh City, etc. At the same time, each province constructs, renovates, and upgrades 1-3 wholesale agricultural product markets in concentrated production and consumption areas of the province.

3.2 Orientation for Developing Market Networks According to Commodity Markets

a) Orientation for Developing Agricultural Product Market Networks: Build and complete wholesale agricultural product markets in cities and concentrated agricultural production areas nationwide; retail agricultural product-food markets in urban and rural areas; periodic trading markets for easily preserved agricultural products or raw materials for processing to form a unified, efficient, and widespread agricultural product market network across the country. Building the agricultural product market network should be considered an important component of the agricultural product market system, with the main task of broadening and deepening the coverage of the market network across the country, enhancing market service functions, concentrating resources to improve market rankings and management levels, and leveraging the functions of aggregating goods, providing information, and forming prices in the market network.

b) Orientation for Developing Market Networks for Production Materials:

The orientation for circulating production materials through the market network mainly targets production materials used in agriculture. The orientation for developing the market network for agricultural production materials is towards continuously strengthening and perfecting the construction of a competitive production materials market network with standardized quality of goods and transaction behaviors, diversifying business subjects; through enhancing effective measures such as monitoring business activities in the market, managing trades, and establishing a synchronized mechanism compatible with the market economy system to monitor the operations of production materials trading enterprises for agriculture.

c) Orientation for Developing Market Networks for Consumer Industrial Goods:

The orientation for developing a network of consumer industrial goods markets is towards balanced development between urban and rural markets, focusing on the following aspects:

- Enhance awareness of the importance and great potential of developing consumer industrial goods market networks in rural markets within the overall national economy, through the development of rural market networks to expand demand and broaden the consumer industrial goods market, thereby promoting economic development.

- Base on farmers' needs to expand the network of consumer industrial goods markets, thereby guiding industrial producers to adapt to consumer goods demands in rural markets.

- Develop modern distribution systems, promote the modernization of business methods for consumer industrial goods within rural market networks, creating important factors for rapid rural economic development. Modern business methods such as chain stores, supermarkets, agency systems... should be selected for application during the process of renovating traditional rural markets, expanding wholesale and retail consumer industrial goods market networks, improving market activity efficiency, gradually building a unified consumer industrial goods market system in both urban and rural areas, enhancing the quality of life for rural residents.

3. 3 Orientation for economic components investing in developing market networks

Encourage economic components to invest in people's livelihood markets in urban areas and industrial zones to provide affordable goods for middle-income and low-income earners. Encourage domestic and foreign enterprises to strengthen investment in the synchronous and modernization of agricultural product wholesale markets based on applying logistics technology; invest in comprehensive wholesale and retail markets in provincial economic centers; invest in border markets and markets in border economic zones. Create favorable conditions for individual traders to participate in capital investment in constructing and upgrading various types of markets in economic regions.

3. 4 Orientation for financial support for developing market systems from state budget funds

- The State supports investment in market land and technical infrastructure or the State provides capital investment, with businesses, individuals, and traders participating in market construction.

- The State prioritizes concentrating capital investment in developing agricultural product wholesale markets in concentrated agricultural product areas, serving as a foundation for gradually developing into commodity trading floors, auction markets, including commodity trading centers operating on forward trading methods. Integrate the construction of people's livelihood markets and border markets with other economic and social development projects, providing additional support through local government budgets or mechanisms and policies (finance, credit, land...) to establish technical infrastructure inside and outside markets; at the same time mobilize resources from businesses, individuals, and traders in the area to jointly invest in constructing, operating, and managing markets.

4. Planning Scheme

(Details in Appendix 1, 2, 3)

4. 1 Network of Agricultural Product Wholesale Markets

- Develop 157 agricultural product wholesale markets, including 35 upgraded and expanded markets and 122 newly constructed markets, among which there are 77 multi-sector agricultural product wholesale markets, 30 vegetable and fruit wholesale markets, 12 rice and grain wholesale markets, and 38 aquatic product wholesale markets.

- Estimated total investment capital is approximately 7.837 billion VND, with the period 2007-2010 being 3.554 billion VND; the period 2011-2015 being 3.963 billion VND; and the period 2016-2020 being 320 billion VND.

- Minimum land requirement is 819.2 hectares, with the period 2007-2010 being 744.2 hectares; the period 2011-2015 being 66 hectares; and the period 2016-2020 being 9 hectares.

4. 2 Network of Comprehensive Wholesale and Retail Markets of Class I in Provincial Commercial Centers

- Develop 319 markets, including 56 markets remaining unchanged and 110 markets requiring upgrades and renovations; 153 newly constructed markets.

- Estimated total investment capital for upgrades, renovations, and new constructions is approximately 5.634.07 billion VND, with the period 2007-2010 being 2.782.48 billion VND; the period 2011-2015 being 2.493.19 billion VND; and the period 2016-2020 being 358.4 billion VND.

- Land requirement is approximately 408.12 hectares, with the period 2007-2010 being 235.72 hectares; the period 2011-2015 being 150.6 hectares; and the period 2016-2020 being 21.8 hectares.

4. 3 Border Market Network (including border markets, border gate markets, and markets in border economic zones)

- Develop 490 markets in the border areas of 25 provinces, including 167 upgraded markets and 323 newly constructed markets. Among them, develop 397 border markets, 35 border gate markets, and 58 markets in border economic zones.

- Estimated total investment capital is approximately 1.796.2 billion VND, with the period 2007-2010 being 923.1 billion VND; the period 2011-2015 being 526.3 billion VND; and the period 2016-2020 being 346.8 billion VND.

- Land requirement is approximately 162.45 hectares, with the period 2007-2010 being 78.75 hectares; the period 2011-2015 being 52.3 hectares; and the period 2016-2020 being 31.4 hectares.

5. On Investment Capital

The total required investment capital for constructing the nationwide market network planned until 2020 is 15.267.27 billion VND, with the period 2007-2010 being 7.259.58 billion VND; the period 2011-2015 being 6.982.49 billion VND; and the period 2016-2020 being 1.025.2 billion VND.

The capital structure includes investment support from the state budget according to Decision No. 210/2006/QĐ-TTg dated September 12, 2006, of the Prime Minister on issuing principles, criteria, and allocation standards for development investment expenditures from the state budget for the 2007-2010 period and according to the list of commercial infrastructure projects under the state budget approved by the Government; loan capital, enterprise capital, trader capital, and other social capital will be the main sources of funding for developing the nationwide market network.

(Details in Appendix 1, 2, 3)

6. On Land Requirements

The total land requirement for constructing the nationwide market network planned until 2020 is approximately 1.389.77 hectares, with the period 2007-2010 being 1.058.67 hectares; the period 2011-2015 being 268.9 hectares; and the period 2016-2020 being 62.2 hectares.

(Details in Appendix 1, 2, 3)

7. List of Market Investment Projects by Investment Phases

The list of markets developed until 2010 and 2020 (with investment phases and detailed regulations) is provided in Appendices 1, 2, and 3.

8. Main Solutions and Policies

8. 1 Solutions on Mechanisms and Policies

a) Investment Policy

Step by step improving legal texts on investment, including amending and supplementing Decree No. 108/2006/NĐ-CP dated September 22, 2006, of the Government detailing and guiding the implementation of certain provisions of the Investment Law and Decree No. 02/2003/NĐ-CP dated January 14, 2003, of the Government on developing and managing markets, primarily amending and supplementing regulations on subjects eligible for preferential investment policies and those eligible for state budget support for market construction to align with the current socio-economic development situation nationwide.

b) Land policy.

- During the process of drafting overall planning or detailed planning for economic zones or new residential areas, provinces must allocate land for constructing markets according to plans approved by competent authorities.

 - Positioning, location, and area of market construction must be appropriate to the planned network development of markets, meeting immediate market needs and the potential for market scale expansion in subsequent phases.

- Provinces need to implement proactive and synchronized solutions and policies to clear land and resettle residents to create favorable conditions for investors to carry out market construction projects.

c) Financial policy

- Strengthen tax collection management for businesses outside markets, ensuring no revenue loss and fairness between businesses inside and outside markets.

- When allocating tax targets to markets, provincial tax management agencies need to carefully survey and assess actual situations and consult opinions from local tax advisory councils at communes, wards, and towns to set appropriate tax levels based on business sales figures.

 - For newly constructed markets, provinces should have preferential tax policies and fee levels for leasing business areas that match the profitability of businesses to attract traders to the markets.

 - Each locality should publicly disclose land rental price frameworks for different areas to facilitate investor selection for market construction.

 - Competent authorities should promptly issue financial mechanisms applicable to the transition of Market Management Boards to enterprises or cooperatives engaged in market operation and management.

8. 2 Solutions for Mobilizing and Utilizing Capital for Market Construction

- Publicly announce the development plan for market networks, related plans, and the list of markets supported by the State for construction using central and local government budgets, along with support levels; markets built using other sources of capital and methods of capital mobilization so that all citizens, businesses, and investors can easily access, study, and exploit them.

 - Implement socialization in the construction, renovation, and upgrading of local markets based on the principle of cooperation between the State and the people on a voluntary basis and mutual benefit.

 - Efficiently mobilize and utilize all sources of capital for market development, with enterprise capital, individual business capital, and loans being the main sources for developing market networks. Combine various sources of capital to ensure effective use. The state budget should focus on supporting market infrastructure and technical facilities; other market construction projects should mobilize enterprise, individual, and local business capital, as well as loans.

8. 3 Solutions for Training and Developing Market Management Personnel

- To address the majority of market managers lacking specialized expertise and mainly relying on experience, training courses should be organized to enhance knowledge about market management for existing personnel and long-term training programs for dedicated market management staff for localities.

 - Develop training and enhancement programs tailored to different groups, prioritizing national administrative managers and market managers; diversify training and enhancement methods to suit the practical conditions of each locality.

 - Provinces should collaborate with trade schools under the Ministry of Industry and Trade to organize training and enhancement classes for market management personnel. Additionally, provinces may independently organize short-term training sessions at the local level with suitable formats.

8. 4 Solutions for Enhancing the Effectiveness of State Management of Markets

- Timely amend and supplement relevant legal texts concerning market planning, development, and management, and effectively implement them.

- Reform state management methods and contents for markets such as drafting and implementing market development plans for each period; improve the quality and effectiveness of state management over market activities in terms of taxation, finance, accounting, food safety, environmental hygiene, fire prevention, anti-smuggling, anti-counterfeiting, and quality assurance; organize training and enhancement classes for national administrative managers and market managers; implement decentralization and coordinated market management.

 - Strictly enforce the clearance and removal of spontaneously formed markets not included in provincial market development plans to ensure traffic safety, environmental hygiene, and enhance the operational efficiency of newly constructed markets.

8. 5 Solutions for Environmental Protection in the National Market Network

- Focus on implementing technical measures for water supply and drainage systems, waste collection and treatment, and wastewater management in markets; complete legal texts on environmental protection in markets, ensuring food safety and animal and plant quarantine in markets.

- Specifically assign responsibilities for leading and coordinating management among central and local functional agencies in directing and supervising environmental protection activities and implementing environmental legal texts in markets; regularly educate and publicize about environmental protection, enhance environmental hygiene skills in markets; apply inspection, control, and administrative penalty regimes for environmental violations.

Article 2. Implementation

1. Responsibilities of Ministries and Sectoral Agencies

1. The Ministry of Industry and Trade shall be responsible for taking the lead and coordinating with relevant ministries and sectors to direct and guide the People's Committees of provinces in implementing this Decision, focusing on the following main tasks:

a) Directing and guiding the provinces to review, adjust, supplement, or develop new planning for the development of market networks in accordance with the provisions of this Decision and related legal documents.

b) Directing, guiding, and inspecting the provinces in establishing and organizing the implementation of investment projects for market development within their territories in compliance with the provisions of this Decision and related legal documents.

c) Preparing a list of market projects that will receive central budget investment support for submission.

d) Guiding and inspecting the provinces in allocating and using state budget funds for supporting the development of market networks to ensure they are used for their intended purposes and are effective.

đ) Reviewing and recommending to the Government to amend, supplement, or amend and supplement, within its authority, legal regulatory documents related to mechanisms, policies, and solutions for market development and management as stipulated in this Decision.

1. 2 The Ministries of Planning and Investment, Finance, Agriculture and Rural Development, Construction, Science and Technology, Natural Resources and Environment, Transport, State Bank, and other relevant ministries and sectors shall coordinate with the Ministry of Industry and Trade to implement the measures and policies outlined in this Decision according to their respective functions and responsibilities.

2. Responsibilities of the People's Committees of provinces:

 Directing the Departments of Commerce and Departments of Commerce and Tourism to cooperate with relevant agencies to perform the following main tasks:

a) For provinces that have market plans prior to the effective date of this Decision, conducting reviews; if these plans do not comply with the provisions of this Decision, they must establish adjustment plans for the development of market networks within their territories and submit them for approval by the People's Committee of the province.

b) For provinces without market development plans: promptly developing market development plans within their territories in line with provincial comprehensive trade development plans, local socio-economic conditions, and the provisions of this Decision.

c) During the process of implementing this Decision, the list of market projects of each province included in the list of market development investment projects attached to this Decision may be adjusted to suit economic and social development and trade development in each locality. However, before deciding to adjust the aforementioned project list, the People's Committee of the province must consult and reach consensus with the Ministry of Industry and Trade.

d) Developing annual market development plans for submission and approval by the People's Committee of the province.

đ) Advising the People's Committee of the province on the establishment, examination, and guidance of the implementation of market development investment projects within their territories according to approved planning and plans.

e) Advising the People's Committee of the province on the allocation and utilization of market investment funds, including state budget investment support funds, in a practical and purposeful manner.

f) Establishing and submitting to the People's Committee of the province for issuance mechanisms, policies (in compliance with legal regulations) and solutions to mobilize and utilize local resources, especially those of enterprises and business households, to develop market networks within their territories.

g) Regularly inspecting the implementation of market network development planning within the province to promptly propose appropriate authorities to handle violations in market development investments that do not comply with planning.

h) Annually reporting to the Ministry of Industry and Trade and the People's Committee of the province on the implementation and results of this Decision.

Article 3. The Standard Measurement Quality Control Department shall be responsible for organizing and guiding the implementation of the Regulations adopted herein.

Article 4. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairmen of Provincial People's Committees, and directly governed city People's Committees, and related agencies are responsible for enforcing this Decision.