Decision No. 27/2007/QD-TTg Approving the Domestic Trade Development Program until 2010 and Orientations until 2020

Pursuant to …;

Approving the Domestic Trade Development Program until 2010 and orientations until 2020

towards 2020

________________________

 

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Considering the proposal of the Minister of Commerce,

DECISION:

Article 1. Approving the Domestic Trade Development Program until 2010 and orientations until 2020 with the main contents as follows:

I. DEVELOPMENT VIEWS

1. Developing domestic trade in accordance with the objective laws of the market economy, ensuring the autonomy, freedom of business, and equal competition among subjects in a legal environment that is increasingly complete and subject to macro-regulation by the State.

2. Developing domestic trade in conjunction with diversifying ownership regimes and economic components of subjects, types of organizational forms, and methods of operation. Paying attention to developing small and medium-sized enterprises and individual businesses, while promoting the development of large trading enterprises under the corporate model, having modern distribution systems, playing a core role in leading the market to guide production and consumption.

3. Developing commodity trade in conjunction with investment, production, and service trade according to international commitments; at the same time, actively meeting the increasingly diverse needs of the domestic market and consumers.

4. Developing domestic trade based on mobilizing all social resources to the maximum extent; focusing on encouraging the ability of enterprises to accumulate and concentrate resources for investment in developing commercial infrastructure, expanding business networks.

II. DEVELOPMENT OBJECTIVES

1. General objectives:

Building a strong and modern domestic trade system based on a reasonable structure of systems and distribution channels with the participation of various economic components and organizational forms operating in a competitive environment regulated and macro-managed by the State. Emphasizing the development of small enterprises and individual businesses; at the same time, encouraging and promoting the formation of large enterprises through the process of accumulation and concentration to create large Vietnamese brand distributors. Implementing the opening of the distribution market according to the agreed WTO accession schedule. Establishing a link between large and small enterprises in organizing the market, creating strength for effective cooperation and competition with foreign conglomerates when Vietnam opens its service distribution market. On this basis, enhancing the role and position of domestic trade in guiding and promoting production development, guiding and meeting the increasingly rich and diverse consumption needs of the people, contributing to export development, promoting structural economic transformation, and economic growth.

2. Specific Objectives:

a) Growth targets:

- The contribution of domestic trade to the Gross Domestic Product (GDP) of the entire economy will reach over 200 trillion VND (accounting for 14.5%) by 2010, and nearly 450 trillion VND (accounting for about 15%) by 2020;

- The average annual growth rate (excluding price factors) of the total retail value of goods and service revenue for consumption from now until 2010 will be approximately 11% per year, and above 10% per year in subsequent periods. By 2010, the total retail value of goods and service revenue for consumption will reach about 800 trillion VND, and by 2020 it will reach about 2,000 trillion VND;

- The share of retail sales by economic sector by 2010: the domestic economic sector (including state-owned and non-state-owned sectors) will account for about 93%; the foreign-invested sector will account for about 7%. This ratio will be 80% and 20% respectively by 2020;

- The share of retail sales by modern trade form (shopping centers, supermarkets, convenience store networks...) will reach 20%, approximately 160 trillion VND in 2010, and 40%, approximately 800 trillion VND by 2020;

b) Modernizing the commercial infrastructure; focusing on building and developing a modern commercial infrastructure system (shopping centers, supermarkets, shopping malls, commercial-service zones, convenience stores, specialty stores, logistics centers, wholesale warehouses, exhibition centers...) in cities, industrial zones, economic zones, export processing zones, border economic zones; completing the basic program for developing various types of markets (rural consumer markets, remote areas, border islands, central markets, specialty markets, wholesale markets in concentrated agricultural production areas, major consumption markets);

c) Diversifying various modern business forms such as commodity trading platforms, auction centers, franchising, e-commerce, etc.;

d) Forming and developing several strong trading groups engaged in specialized or comprehensive goods trading, capable of competing and effectively cooperating with foreign distribution conglomerates when Vietnam opens its service distribution market;

đ) Developing a skilled and professional human resource for trade, keeping pace with the development requirements of domestic trade under conditions of international economic integration;

e) Improving the institutional management framework for trade to ensure healthy and sustainable trade operations; enhancing the self-adjustment capacity of the domestic market when the world market fluctuates.

III. DIRECTION FOR DEVELOPMENT

1. Diversifying various types of enterprises with different scales, increasing in number, new in operational methods towards modernization and professionalism, in line with the laws of commodity circulation.

Reforming organizational models, management technology, and business methods towards professionalization and modernization to gradually build the following main types of trading enterprises:

- Groups and parent-child companies specializing in goods trading;

- Groups and parent-child companies engaged in comprehensive goods trading;

- Modern retail trading companies;

- Modern wholesale trading companies;

- Service logistics trading companies;

- Companies (or cooperatives) managing and operating markets; 

- Joint-stock companies engaged in production, processing, and consumption of agricultural products and food;

- Rural trade and service cooperatives;

- Households engaged in commercial trading.

2. Diversify various forms of commercial infrastructure, harmonizing traditional commerce with modern commerce, in accordance with the nature and level of development of the market in each locality (region, area, region, and nationwide).

Based on the characteristics of the market in each locality and linked to each economic space, various forms of commercial infrastructure are distributed and developed with different scales, nature, and levels according to the following main orientations:

a) Traditional market forms and modern wholesale agricultural product trading forms:

- Rural markets;

- Urban markets;

- Border markets, customs markets, markets within border economic zones;

- Central wholesale markets or specialized wholesale markets;

- Trading floors, auction centers;

b) Modern trading forms:

- Shopping centers, supermarkets;

- Shopping areas, concentrated commercial-service zones;

- Logistics centers, central wholesale warehouses;

- Virtual supermarkets, virtual markets, intermediary buying and selling houses on the Internet.

3. Develop circulation models for each commodity market, in line with the nature and level of production, consumption trends and methods, meeting the requirements of macro-management by the State.

a) For agricultural, forestry, and aquatic products:

- Establish and develop direct, stable, and long-term links between commercial enterprises (domestic circulation and import-export) and industrial processing bases, trade and service cooperatives, rural joint-stock companies, and farming households, farms, and breeding and cultivation facilities. Create vertical linkages along each product line, from seed, technology, input materials, production, procurement, storage, processing to consumption (both domestic and international);

- Consolidate and develop rural trade and service cooperatives as intermediaries between producers and commercial enterprises and processing facilities, providing inputs and outlets for farmers. Encourage direct links (cooperation) between aquaculture households, centralized production, trade and service cooperatives, and processing facilities;

- Focus on building various types of community markets (general retail, serving production and daily life of farmers), central markets, specialized wholesale markets, auction centers, trading floors in concentrated agricultural production areas (selling agricultural products through wholesale to other regional markets, for processing industries, and for export); central wholesale warehouses, logistics centers (for preservation, initial processing, sorting, packaging, transportation... increasing product value and supplying the domestic wholesale and retail network and for export);

b) For consumer goods industry:

- Form and develop trading centers, wholesale markets, "technology markets," "raw material markets"... in cities, industrial zones, economic zones, export-processing zones, border economic zones... linked to the global market through import-export activities to stabilize inputs for consumer goods production at low costs and high efficiency;

- Focus on rapidly developing modern distribution systems according to the "chain" model to expand geographically based on economic spaces, with cities, industrial zones, economic zones, export-processing zones, border economic zones... as centers, developing channels to reach rural areas. On the basis of creating sufficient business scale to organize logistics systems, central wholesale warehouses, applying information technology in management and developing e-commerce, expanding distribution networks through franchising to make domestic trade a material force capable of influencing and guiding production and consumption development.

c) For important or special commodity sectors:

The main direction for enterprises to establish and develop circulation models for these sectors is:

- Consolidate distribution systems established on the basis of establishing vertical linkages, having close, stable, and binding responsibilities at each stage of the circulation process from production, import-export to wholesale and retail through direct or agency sales relationships. Upstream enterprises (production, import) must control and be responsible (or jointly responsible) for the entire system, from costs, prices, origin, quantity, quality, and brand of goods to service methods and quality...;

- Establish distribution systems based on building and developing central wholesale warehouses and logistics centers arranged according to market regions to accept goods from production and import facilities and supply goods to the wholesale and retail network (branch stores, agents) in the area;

- Encourage businesses dealing with groups of goods related in consumption to develop horizontal linkages in the distribution phase to reduce investment costs, circulation costs, and social costs due to time savings in shopping (horizontal linkages in the wholesale phase through the establishment of trading centers, central wholesale warehouses, logistics centers; horizontal linkages in the retail phase through the development of convenience store networks);

- The State intervenes in these sectors' markets mainly through regulations on organizing and controlling distribution systems, using indirect tools such as credit, interest rates, taxes, national reserves... to influence the market through upstream enterprises.

IV. SOLUTIONS FOR DEVELOPMENT AND IMPLEMENTATION

1. Complete the legal framework, create a stable and healthy business environment:

a) Ministries and sectors shall urgently draft and submit to the Government for promulgation consolidated documents and detailed regulations guiding the implementation of relevant laws concerning commercial activities (such as decrees on tobacco, alcohol, gas management; decrees on administrative penalties in the field of commerce...); review and supplement related legal documents concerning technical barriers (such as quality standards, food safety standards, environmental standards...) to protect the domestic market and consumer interests;

b) The Ministry of Commerce:

- Draft standards and guidelines for developing various forms of commercial business organizations as a basis for enterprise investment decisions, serving state management work and guiding consumers in choosing shopping places;

- Draft regulations on the organization and management of distribution systems for certain important or special goods (such as gasoline, gas, cement, steel, fertilizers, pharmaceuticals, explosives, alcohol, tobacco...), ensuring that the State has the ability to control and use indirect tools to promptly impact the market through upstream enterprises;

- Provide specific guidance on the implementation of commitments regarding opening up the service distribution market for foreign-invested enterprises in wholesale, retail, franchising, and agency services.

2. Regarding market inspection and supervision:

a) Ministries with specialized management functions according to their assigned tasks shall be responsible for directing competent agencies to strengthen market inspection and supervision; strictly handle acts of trade fraud, counterfeit goods, substandard goods, goods not meeting food safety requirements, goods violating intellectual property rights to ensure the interests of consumers, businesses, and the State;

b) The Ministry of Commerce shall take the lead in drafting and submitting to the Prime Minister a proposal to enhance the effectiveness of market inspection and supervision work towards entrusting one ministry with primary responsibility for inspecting and supervising product quality, standards, food safety, intellectual property rights, anti-smuggling, trade fraud, business registration... ensuring centralized, effective, and efficient state management, consistent with development requirements and integration, creating a fair competitive environment for economic entities of all components and protecting consumer interests.

3. Regarding market management:

The Ministry of Commerce shall take the lead and coordinate with other ministries and agencies that are members of the Domestic Market Management Steering Group to proactively apply necessary measures to improve the quality and effectiveness of market management work, focusing on improving the quality of market information and forecasting; analyzing supply-demand trends and market prices; mechanisms for coordination among state management agencies in formulating and implementing timely intervention measures when the market shows signs of instability, ensuring balance in supply and demand for key goods in all situations.

4. Regarding planning for the development of commerce:

The Ministry of Commerce shall be responsible for:

a) Urgently drafting, approving, or submitting to the competent authority for approval comprehensive plans for the development of the commerce sector, infrastructure development plans for commerce nationwide and in economic regions in accordance with current legal provisions;

The comprehensive plan for the development of the commerce sector is part of the overall economic and social development plan; the infrastructure development plan for commerce is part of the land use plan; commerce-related plans, once approved by the competent authority, serve as legal grounds for deciding investment projects for building commerce infrastructure;

b) Supervising the approval and implementation of comprehensive commerce development plans and infrastructure development plans by localities in accordance with regional and national commerce plans.

5. Regarding policies and solutions to encourage investment in commerce infrastructure development:

The Ministry of Commerce shall take the lead in researching and proposing to the Government and the Prime Minister preferential mechanisms and policies to support investment in commerce infrastructure development projects similar to those for other production and business sectors in the same area.

6. Regarding enhancing human resource quality:

a) The Ministry of Commerce shall draft a proposal to utilize domestic and foreign capital to support training and human resource development for commerce enterprises;

b) The Ministry of Finance shall allocate the annual budget to upgrade material and technical facilities, build a teaching staff and curriculum for distribution training programs at vocational colleges and secondary vocational schools under the Ministry of Commerce to meet the needs of enhancing the quality of human resources in the commerce sector.

7. Encourage enterprises to establish wholesale, retail associations, markets, supermarkets (with emphasis on attracting individual traders to participate) to help members share experiences, exchange information, seek opportunities, create joint ventures and collaborations, support domestic trade promotion activities, and promote brand building and promotion...

Article 2. This Decision shall take effect fifteen days from the date of publication in the Official Gazette.

Article 3. THE MINISTERS, HEADS OF GOVERNMENT-LEVEL MINISTRIES, HEADS OF GOVERNMENT-LEVEL AGENCIES, AND CHAIRMEN OF PROVINCE AND CITY PEOPLE'S COMMITTEES DIRECTLY UNDER THE CENTRAL GOVERNMENT SHALL BE RESPONSIBLE FOR ENFORCING THIS DECISION./.