Circular No. 15-TM/CSTTTN guiding the organization and management of markets

 

CIRCULAR

concerning the organization and management of markets

Markets constitute a commercial network that has been formed and developed alongside the growth of the national economy and society. To effectively utilize the potential of markets to serve the development of the national economy and contribute to serving the lives of workers, the Ministry of Commerce guides the organization and management of markets as follows:

 

I. CLASSIFICATION OF MARKETS

In this Circular, markets are classified into three types based on their scale as follows:

Type 1 Market: A market with more than 500 business households establishing fixed shops, stores, stalls for regular trading.

Type 2 Market: A market with between 100 and 500 households engaged in regular fixed trading.

Type 3 Market: All other markets.

 

II. LEVELS OF MARKET MANAGEMENT

State management over market activities is divided into levels as follows:

2.1. At the provincial level (hereinafter referred to as province or city), the Department of Commerce is the functional agency assisting the People's Committee:

2.1.1. To develop planning and plans for the development of market networks within the area; to propose measures (regarding investment capital, location of markets, organizational management...) to form market networks according to the plan.

2.2.2. To submit to the People's Committee for decision-making the establishment and dissolution of Type 1 markets whose operations affect the entire region (across provinces, counties).

2.2.3. To direct, guide, and inspect the implementation of state regulations regarding the organization and management of markets, and the implementation of policies for goods circulation within markets.

2.2.4. To take the lead in coordinating with relevant departments in organizing and managing markets.

2.2.5. To monitor, compile, and evaluate the results of market operations; to summarize experiences from market organization and management work. To train staff responsible for market management work within the area.

2.3. At the district level (hereinafter referred to as district):

The District People's Committee manages all aspects of market activities within its jurisdiction. Decides on the establishment and dissolution of Type 2 and Type 3 markets after consultation with the Department of Commerce.

The Finance and Commerce Office assists the District People's Committee in managing market activities, specifically:

2.3.1. According to the guidance of the Department of Commerce and relevant departments, to develop plans for building and renovating markets according to the overall plan of the province or city.

2.3.2. To classify markets and report to the District People's Committee for decisions on decentralizing some Type 3 markets to communes or wards.

2.3.3. To guide, inspect, urge, or coordinate with functional agencies to inspect the implementation of state regulations regarding market organization and management, goods circulation policies within the market, and related regulations affecting market operations.

2.3.4. To periodically review and summarize market activities, implement reporting systems as prescribed.

2.4. At the commune level:

The Commune People's Committee shall perform the following tasks:

2.4.1. To organize and manage the operation of markets decentralized to the commune in accordance with state regulations.

2.4.2. To have plans for repairing market infrastructure within its jurisdiction.

2.4.3. To report regularly on the operational situation of markets within the commune.

III. ORGANIZATION AND MANAGEMENT OF MARKETS

3.1. The main form in organizing market management is the Market Management Board.

A Market Management Board shall be established at each Type 1 and Type 2 market.

For Type 3 markets, the local People's Committee, based on specific circumstances, may choose one of the following forms:

3.1.1: Regularly held markets with 50 to 100 fixed business households operating within the scope of multiple wards or communes may establish a Market Management Board under the district or county.

3.1.2. Small markets with fewer than 50 fixed business households, internal ward or commune markets, which are not regularly held, may establish a market management team.

3.1.3. For certain small markets operating within the scope of villages, hamlets, or communities, tendering for management may be allowed under the principle: The state issues regulations on the functions and responsibilities of the market management team. Specifies revenue items, specific revenue levels for each item; expenditure items, expenditure levels, and methods of expenditure for each item. Organizations and individuals participating in the tender must comply with the specified revenues and expenditures and manage according to the prescribed format.

The Finance and Commerce Office assists the County People's Committee in guiding the tender process.

The Market Management Board is a self-financing public service entity with legal personality, having a seal and bank account at the National Treasury.

The Market Management Board is subject to professional guidance and inspection by the Finance and Commerce Office and has the following duties and powers: 3.2.1. To draft internal rules for market operations, submit to the District or County People's Committee for approval and implementation.

3.2.2. To consider and decide on accepting or rejecting applications from organizations and individuals wishing to set up shops, stores, stalls... for trading at the market.

3.2.3. To arrange trading locations according to technical hygiene and civilized commerce requirements suitable for each market's characteristics.

3.2.4. To manage the entire market infrastructure, develop and implement plans for repair and new construction, ensuring safe, civilized, and effective market operations.

3.2.5. To guide, inspect, and urge traders at the market to fully comply with state regulations on trade and services.

3.2.6. To take the lead in coordinating with functional agencies in maintaining order, security, fire prevention and control (PCCC), environmental sanitation; handling violations related to market activities.

3.2.7. To organize statistics on goods circulating through the market, market conditions, and price fluctuations within the market area, and report data according to state regulations.

3.2.8. To organize services supporting market operations, including: + Organizing the rental of trading locations and equipment, serving the buying and selling of goods and services.

+ Storing and protecting the property and equipment of buyers and sellers at the market.

+ Organizing protection of goods outside business hours, accommodation services, health care, environmental protection... at the market according to the needs of traders.

3.3. Administrative staff members of the Market Management Board are civil servants of the State, performing their duties according to the regulations for civil servants. The staffing of the Market Management Board is determined by the agency issuing the decision on establishment based on the scale and nature of activities of each type of market and specific local conditions. In addition to the administrative staff members mentioned above, the Market Management Board may employ a certain number of employees under labor contracts for service work depending on the nature and scale of each type of market.

The Market Management Board has a director and several deputy directors to assist. The director of the Market Management Board has the following responsibilities:

- Organizing and directing the operations of the Market Management Board.

- Managing the cadre, implementing personnel policies, caring for the material and spiritual life of workers under their management, creating favorable conditions for them to fulfill their assigned tasks well.

Handling violations of the market's internal rules. Other violations are transferred to competent authorities as prescribed by law.

3.4. Encouraging large cities and provinces to apply the business enterprise model for managing markets when the following conditions are met:

- There is a need from traders and a location to expand the scale of the market.

- There is the ability to mobilize capital from organizations and individuals participating in investment in construction, expansion, or renovation of the market towards modernity and civilization, achieving economic and social efficiency.

- Having a cadre with sufficient management capacity.

A market management enterprise (including state-owned enterprises, private enterprises, Limited Liability Companies, Joint Stock Companies, etc.) is an economic organization established according to legal provisions to manage one or more markets, operate independently, have legal personality, be financially autonomous, and bear responsibility for its business results.

The market management enterprise performs the tasks and powers of the Market Management Board as stipulated in this Circular, except for the task mentioned at 2.3.5 which is transferred to the Finance and Commerce Office or other competent agencies at the district or county level.

 IV. FINANCIAL MANAGEMENT OF THE MARKET

4.1. Capital for constructing the market is established from the following main sources:

4.1.1. Budget funds: Based on the requirements for constructing the market, the Department of Trade submits to the People's Committee of the province or city the amount of investment capital for constructing and renovating the market from the state budget, mainly for initial infrastructure (land leveling, water supply and drainage systems, sanitation facilities, etc.), especially for central markets in mountainous, highland, remote, and far-flung areas for the provincial or municipal People's Committee to decide according to the financial capability of the locality.

4.1.2. Capital contributed by the people:

To create capital for constructing the market, the Chairman of the Provincial or Municipal People's Committee considers and approves plans to mobilize contributions from the public, primarily those who are permanent traders in the market, through voluntary advance payments for rental space, to be deducted gradually from the traders' earnings.

4.1.3. Borrowed capital as prescribed by the State.

4.1.4. Other sources of capital.

4.2. Sources of revenue - applicable to the Market Management Board model.

4.2.1. Rent for selling space for those setting up fixed shops and regularly trading in the market.

4.2.2. Entrance fees for occasional traders not permanently located in the market.

4.2.3. Revenue from other services organized and managed by the Market Management Board.

The District or County People's Committee, after negotiating with the Departments of Finance and Trade, issues decisions on the levels of revenue specified in Points 4.2.1 and 4.2.2 above. Revenue from Point 4.2.3 is regulated by the Market Management Board based on market prices to set specific rates and report to the District or County People's Committee.

4.3. Expenditures - applicable to the Market Management Board model.

4.3.1. Administrative expenses for market management services according to the state's financial management system.

4.3.2. Expenses for repairing and upgrading market infrastructure. Purchasing and supplementing equipment for market operations.

4.3.3. Repayment of borrowed capital (if any) and payment to the budget.

Expenditures 4.3.1 and 4.3.2 are planned by the Market Management Board based on the needs for building and developing the market, balancing revenues over time, and submitted for approval and implementation by the District or County People's Committee.

Expenditure 4.3.3: Managed according to the state's system. Specifically, revenue from Point 4.2.3 is managed according to the current accounting system for service business operations of the state.

4.4. For places applying the enterprise model for managing markets, statistical and accounting systems must comply with state regulations.

 V. DIRECTION FOR DEVELOPING THE NETWORK OF MARKETS IN THE COMING PERIOD
MARKETS IN THE COMING PERIOD

Markets are an important part of the social commerce system. The development of the market network must follow a certain plan based on identifying the factors that form the market. In planning the development and construction of markets, attention should be paid to the following factors:

- Infrastructure (roads, transportation means, communication, bus stations, ports, etc.) must be convenient for trade, reducing time and circulation costs.

Population density, income levels, and consumption habits: the higher the population density, the greater the residents' purchasing power, requiring a larger number and scale of markets to meet the demand.

- Production technology and structure, characteristics of production in each region are factors for developing a commodity economy, which must be considered when building markets.

- The number of people engaged in business and the number of people who need to engage in business at the market.

- The emergence and development of other forms of commerce such as specialized streets, supermarkets, stores, and shops.

- Management organization factors: organizational models, policies, mechanisms, cadre...

On the basis of the network planning, the direction for developing markets in the coming period is as follows:

5.1. Urban areas:

- Renovating and upgrading existing markets while reasonably arranging to make full use of market infrastructure and area. Increasing modern equipment for market trading.

- Constructing new markets or carrying out comprehensive renovations for some key markets to increase trading areas, supplement equipment, and modernize stalls.

- Expand reasonably large markets in cities and concentrated industrial zones to serve as transfer hubs for goods between urban and rural areas, while encouraging the formation and development of new types of markets such as night markets, evening markets, specialized markets, etc., to shorten circulation time and ensure that goods are supplied to the market with the best quantity and quality.

- Construct additional markets in newly formed residential areas. Gradually replace temporary markets that affect urban order, landscape, and environment.

5.2. Rural Market Area

Focus investment on markets in townships and towns. Encourage the development of wholesale markets and specialized markets in concentrated production areas capable of influencing market networks within each region.

In addition to large markets, it is necessary to develop new markets of appropriate scale linked to residential areas and traditional craft villages to supply raw materials, meet daily needs of the people, and establish sales networks for producers.

5.3. Mountain Markets, Border Markets, and Customs Markets:

Mountain markets are an important form to promote commodity economy, especially in highland and remote areas. Therefore, in the coming years, the State will focus on developing market networks with appropriate scales. The State budget may provide partial support, mainly for infrastructure construction for the establishment of new markets. For existing markets, the Chairman of the Provincial People's Committee shall decide based on the local market network development needs, allowing the use of market revenue (excluding rent) to establish a market development fund for an appropriate period.

The expansion of border markets and customs markets shall be carried out in accordance with specific regulations.

 VI. IMPLEMENTATION

6.1. The provincial or municipal People's Committee directs relevant departments to include the task of developing market networks in the land balance fund and annual capital allocation plan, and assigns the Department of Commerce to implement it.

6.2. The Department of Commerce is responsible before the provincial or municipal People's Committee and the Ministry of Commerce for guiding, organizing implementation at the grassroots level, and implementing reporting procedures as stipulated, specifically:

- Take the lead in coordinating with relevant departments to develop plans and programs for market network development.

- Guide districts, counties, and towns in establishing organizational structures, internal rules,

regulations on market organization and management.

- Coordinate with the Finance Department to define revenue and expenditure items in markets.

- Coordinate with public security departments to deploy forces to maintain order in the market system.

This Circular takes effect from the date of signature.