Directive No. 13/2004/CT-TTg on measures to vigorously develop the domestic market

 DIRECTIVE

Regarding the implementation of key measures to vigorously develop the domestic market 

Implementing Resolution No. 12/NQ-TW dated January 3, 1996 of the Politburo on continuing to reform the organization and operation of commerce and developing a socialist-oriented market, the Government has issued many policies and measures to organize and develop the domestic market. These policies and measures have had positive impacts on production and commodity circulation, the domestic market has initially been expanded, commodity turnover has increased, and better served the needs of production and daily life.

However, commercial activities in the domestic market still suffer from numerous weaknesses and inadequacies such as: slow establishment and development of market organizational models and distribution channels to ensure stable and diverse connections from production to consumption; inadequate investment in commercial infrastructure; poor forecasting of supply-demand and prices, failing to meet the requirements for economic management as well as practical business operations; the process of linking and concentrating among enterprises, especially state-owned trading enterprises, has not been clearly directed, thus failing to create competitive strength in response to integration requirements; state management of commerce has not closely followed practical conditions.

The causes of the above situation are due to the fact that our country's economic mechanism is still in the process of transition, most enterprises are small, the private economic sector is just beginning to form; the understanding of all levels, sectors, and enterprises about the position and role of the domestic market is not comprehensive enough; the organization of the domestic market has not been given sufficient attention, lacking specific guidance in implementing existing mechanisms and policies.

To address these weaknesses, further leverage the role of the domestic market in promoting production development and economic growth of the country, and create a solid foundation for international economic integration, the Prime Minister requests Ministers, Heads of ministerial-level agencies, Chairpersons of People's Committees of provinces and centrally governed cities (hereinafter referred to collectively as provinces) to focus on directing and effectively implementing the following tasks:

1. Forming and developing commercial infrastructure to facilitate commodity exchange activities, including: markets, trade centers (wholesale and retail goods), supermarkets, and networks of appropriate shops to meet the requirements of production and consumption development in each locality.

a) The Ministry of Commerce shall be responsible for:

- Closely coordinating with provincial People's Committees in planning and implementing the development of market networks, trade centers, and supermarket systems with positions and scales suitable to the specific characteristics and conditions of each locality; focusing on planning the development of wholesale markets, specialized markets, trade centers, and large supermarkets in a reasonable manner.

- Taking the lead and coordinating with relevant ministries and sectors to study and promulgate economic and technical standards, design models for various types of markets, supermarkets, and trade centers to ensure rationality, efficiency, and cost-effectiveness in construction as well as operation and utilization.

b) The Ministry of Planning and Investment shall have the responsibility:

- Taking the lead and coordinating with relevant ministries and sectors to balance central budget funds to submit to the Prime Minister for approval to allocate annually to support part of the technical infrastructure investment for market construction projects in accordance with the spirit of Decree No. 02/2003/NĐ-CP dated January 14, 2003 of the Government on market development and management. Priority will be given to provinces in the Mekong Delta, Southeastern region, Central Highlands, and Red River Delta that are important agricultural product areas. In the short term, efforts will be concentrated on completing pilot construction, operation, and management of regional wholesale agricultural markets in the provinces of Nghe An, Dak Lak, and Can Tho to draw lessons for nationwide implementation.

- Taking the lead and coordinating with relevant ministries and sectors to study, adjust, and supplement mechanisms and policies to encourage businesses of all economic components to invest in commercial infrastructure development, particularly in rural and mountainous areas.

c) Relevant sectoral ministries shall coordinate with provincial People's Committees to select some units under their ministries and localities to direct and guide them to become leading units in building and developing civilized and modern trading businesses. In the short term, within two years (2004-2005), efforts will be focused on consolidating and building new trade centers, supermarkets, and shop networks in major cities and at some large border economic zones.

d) Provincial People's Committees shall be responsible for:

- Organizing and approving development plans for market networks, trade centers, and supermarkets in their localities in accordance with current regulations.

- Allocating land funds and mobilizing investment capital to implement construction projects for markets, trade centers, and supermarkets in their localities. In the short term, within two years (2004-2005), resources will be concentrated on constructing wholesale agricultural markets (taking into account the connection between economic regions), provincial-level trade centers, and community retail markets in villages and clusters of villages with urgent market needs; particularly, paying attention to developing markets in cluster village centers in mountainous, border, and ethnic minority areas with appropriate scales, taking into account local market customs.

2. Establishing links between commodity circulation and production, especially agricultural production. Developing agency buying and selling methods and providing services and materials for production and consumption according to stable and long-term contracts.

a) The Ministry of Commerce shall take the lead and coordinate with sectoral ministries to supplement and perfect the Agency Buying and Selling Regulations; coordinate with relevant agencies and localities to guide, encourage, and create conditions for enterprises to establish trading networks and agency buying and selling systems.

b) The Ministry of Agriculture and Rural Development shall take the lead and coordinate with relevant ministries, sectors, and People's Committees of provinces to assess the results of implementing Decision No. 80/2002/QĐ-TTg dated June 24, 2002, of the Government on policies encouraging the consumption of agricultural products through contracts, and propose to the Prime Minister amendments and supplements to the contents to be consistent with reality.

c) The People's Committees of provinces shall be responsible for directing the coordination and linkage between enterprises, cooperatives, credit organizations, and farming households in the consumption of agricultural products through contracts; direct grassroots authorities to effectively perform their functions of propaganda, education, and ensuring that farmers fully understand their rights, obligations, and responsibilities when implementing the consumption of agricultural products according to contracts; coordinate with specialized agencies to organize training sessions on business practices and experiences related to signing and implementing contracts for farmers; strengthen supervision and inspection of the process of implementing contracts for the consumption of agricultural products; coordinate with central agencies to implement necessary support measures within their functions and authority to ensure the legitimate rights of all parties in the implementation of contracts for the consumption of agricultural products.

3. Gradually form commercial groups and large trading corporations in a civilized and modern manner.

Relevant ministries managing industries shall proactively coordinate with relevant ministries, sectors, and People's Committees of provinces to study and promulgate mechanisms and policies to create a legal basis for promoting the process of accumulation and concentration in trading activities to form commercial groups and large trading corporations with a comprehensive business system across regions, engaging in multiple industries or specialized fields, developing both exports and imports while expanding domestic market trading; economic linkages within these business systems mainly occur through contractual purchasing and sales, orders, and through a network of agents.

4. Promote the development and enhance the effectiveness of operations of associations in the trading sector in the domestic market.

The Ministry of Home Affairs shall take the lead and coordinate with relevant ministries and sectors to study and propose mechanisms and policies to create conditions for the development and enhancement of the effectiveness of operations of associations, including those in the trading sector, in the direction of combining the protection of members' interests with risk insurance and sharing benefits for producers, especially farmers; enhancing the role of associations in coordinating export-import activities with domestic market trading activities; improving the role of associations in participating in the formulation of macro mechanisms and policies to stabilize markets and prices of key goods.

5. Vigorously develop trade and service cooperatives in various areas, with a focus on rural areas.

a) The Vietnam Union of Cooperatives shall take the lead and coordinate with the Ministry of Agriculture and Rural Development, the Ministry of Trade, and People's Committees of provinces to base on the Law on Cooperatives (2003) to guide and orient the establishment of trade and service cooperatives in various areas, with a focus on rural areas, primarily adopting a model of agricultural (forestry, fishery) cooperative - trade - service cooperative operating in the field of services for agricultural (forestry, fishery) production such as supplying production inputs, supporting market search, sourcing goods, and organizing the sale of goods for farmers.

Encourage the development of a cooperative model with participants including both individuals (individuals, business households, farmer households...) and legal entities (state-owned enterprises, limited liability companies, joint-stock companies, private enterprises, other cooperatives...). Build cooperatives into the main intermediary for signing purchase and sale contracts and acting as agents for buying and selling with agricultural product and agricultural input trading enterprises in the rural market to facilitate the majority of farmers' agricultural product sales and supply important agricultural inputs for agricultural production.

b) The Ministry of Planning and Investment shall take the lead and coordinate with relevant ministries and sectors to urgently amend Decree No. 15/CP dated February 21, 1997, of the Government on policies encouraging the development of cooperatives to be consistent with the Law on Cooperatives (2003) and other related legal documents, particularly policies on land leasing for business premises, tax exemptions and reductions, support for building commercial infrastructure, training and capacity-building funds for cooperative management staff,…

c) The Ministry of Finance shall take the lead and coordinate with the State Bank of Vietnam and related agencies to study and submit to the Prime Minister proposals to amend regulations on the establishment, organization, and operation of the Guarantee Fund for Small and Medium Enterprises issued together with Decision No. 193/2001/QĐ-TTg dated December 20, 2001, of the Prime Minister to be consistent with current realities.

6. Strengthen state management, gradually perfect the institutional framework for commodity circulation management, improve the quality and effectiveness of market forecasting and regulation work, and price control of key goods to ensure stable and sustainable development of the domestic market.

The Ministry of Trade shall be responsible for:

- Taking the lead and coordinating with relevant ministries, sectors, and People's Committees of provinces to implement existing laws to effectively combat smuggling, the production and circulation of counterfeit goods, illegal business activities, and other fraudulent trading behaviors; strengthen inspections and oversight of the implementation of laws on intellectual property, product quality, and quality management during circulation to protect the rights of producers and consumers.

- Take the lead and coordinate with relevant ministries, sectors, associations, and some state-owned corporations to improve and enhance the effectiveness of the Domestic Market Management Steering Group's operations based on improving the quality of forecasting, analyzing, and evaluating supply-demand relationships and prices of key goods in the national economy; proactively take measures to counteract adverse market impacts from abroad, while recommending to the Prime Minister issues beyond their authority to address promptly and enhance the effectiveness of domestic market management.

- Take the lead and coordinate with relevant ministries and sectors to review and assess the implementation of current policies and institutional frameworks regarding the circulation of goods and the provision of commercial services in the domestic market, particularly those goods and services that significantly impact production, living conditions, and ecological environments, in order to timely supplement, amend, or recommend to competent authorities for supplementation and amendment to align with reality.

7. The Ministry of Commerce shall be responsible for monitoring and regularly reporting to the Prime Minister on the implementation of regulatory legal documents already issued concerning domestic market management and the implementation of this Directive.

8. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees under central cities shall be responsible for fully implementing the tasks outlined in this Directive.