Decision No. 311/2003/QĐ-TTg Approves the Scheme to Continue Organizing the Domestic Market and Focus on Developing Rural Trade until 2010

Pursuant to …;

Regarding the approval of the project to continue organizing the domestic market, focusing on developing rural trade until 2010

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PRIME MINISTER

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

Considering the proposal of the Minister of Trade.

DECISION:

Article 1. Approve the Project "Continuing to organize the domestic market, focusing on developing rural trade until 2010" with the main contents as follows:

I. OBJECTIVES AND TASKS FOR DEVELOPING THE DOMESTIC MARKET UNTIL 2010

1. General objectives and tasks:

To arrange and expand the domestic market in conjunction with the foreign market, ensuring smooth circulation of goods, better meeting the needs of production and daily life; promoting consumption of goods, especially agricultural products, stimulating production development and exports; leveraging the positive role of advanced commercial models and various types of traders from different economic sectors; creating a healthy, safe, and favorable business environment, contributing to implementing the regional and global integration roadmap, promoting economic and social growth, serving the cause of industrialization, modernization, and developing a socialist-oriented market economy.

2. Specific objectives and tasks:

a. Maintaining a growth rate of 11-14% per year for the total retail value of goods and services during the period 2001-2005 and 14-15% per year during the period 2006-2010; striving to reach more than three times the current absolute level of average annual per capita retail value of goods and services in rural areas by 2010, producing many goods capable of competing in both domestic and international markets.

b. The consumer price index increases by about 5% per year, gradually limiting the degree of increase in the exchange rate differential between industrial and service goods and agricultural products.

c. Forming a synchronized system of mechanisms and policies to develop the market and a favorable legal environment to encourage organizations and individuals to participate in business activities; expanding the network of traders from various economic sectors, among which state trade plays a core and leading role through two basic criteria: wholesale market share and export-import ratio for key goods; reforming the organization and operation of collective trade, encouraging the development and guiding the management of private trade; forming and developing channels of circulation in the direction of linking circulation with production, goods reaching consumers at the lowest cost; increasingly having traders capable of competing in both domestic and international markets.

d. Consolidating and developing the infrastructure and material-technical facilities serving commerce in the direction of effectively organizing and utilizing networks of markets; intensifying and developing wholesale markets, specialized markets, trading floors, warehouses for storing and preserving agricultural products so that these facilities become reliable places for transactions and consumption of products, providing materials and goods for production and living needs; developing supermarkets, shopping centers, forms of electronic commerce, primarily in cities, towns, and concentrated economic zones; building and improving the quality of operations of the market information and promotion system domestically.

đ. Strengthening market discipline and order; preventing smuggling, fraudulent trade practices, production and sale of fake and substandard goods; protecting the legitimate interests of producers, enterprises, and consumers.

e. Continuously supplementing, amending, perfecting, and harmonizing the legal system and policies for trade development; reforming the organizational structure, cadres, methods, tools, and operational mechanisms of the state management system regarding trade in general and the domestic market in particular.

Striving to build a trade and market system that develops increasingly towards fairness, democracy, civilization, modernity, and sustainability; preparing the best economic and social conditions of the domestic market to meet the requirements of integration with regional and international markets.

II. DIRECTIONS FOR REORGANIZING THE DOMESTIC MARKET UNTIL 2010

1. Forming and developing stable channels of circulation for goods to reach consumers as quickly and at the lowest cost as possible.

For the circulation of agricultural products, ensuring the consumption of almost all products produced in rural areas through contracts between producers and enterprises, producers and cooperatives, or cooperatives and enterprises. For the circulation of materials and goods serving production and living needs in rural areas, in addition to implementing the aforementioned sales and exchange contracts, encouraging and creating conditions for the formation of networks of enterprises, cooperatives, and agents.

By 2010, the main goal is to implement sales and product consumption mainly through contractual purchasing and selling methods; reforming the organization and operation of cooperatives and agent networks, developing a system of various types and levels of markets to form reasonable channels of circulation between agriculture and industry, rural and urban areas, the domestic market and the foreign market.

2. Forming and developing trade models suitable for the characteristics, conditions, and capabilities of each level of the market.

a. Model of national market trade: combining the activities of medium and small enterprises with the formation and development of groups, holding companies, brands, and parent companies operating across industries or specializing in certain goods or groups of goods in the field of trade (both domestic circulation and import-export) with a nationwide distribution-sales network; linking production with processing, storage with circulation of goods.

b. In addition to the model mentioned in point a:

- In urban markets: focusing on developing supermarkets linked with shopping centers, trading floors, wholesale markets, and forms of medium-scale electronic commerce.

- In rural markets: the key is to establish a sales network, mainly consisting of stores and trading points, to create interconnected commercial activities within regions and nationwide.

Continue to reform the organization and operations of cooperatives towards transitioning to joint-stock cooperative forms to aggregate private trade forces (individuals and business households), making rural service cooperatives satellite networks acting as agents for purchasing and selling goods for enterprises (marketing agricultural products and supplying production materials and consumer goods).

III. CONCENTRATED SOLUTIONS FOR THE DEVELOPMENT OF RURAL COMMERCE UNTIL 2010, ESPECIALLY THE PERIOD FROM 2003 TO 2005

1. Implement specific measures both in terms of institutional building and economic policies suitable for each region, area, and local consumption characteristics to enhance the capacity and role of supply and consumption (guaranteeing) of materials and goods by markets, trading centers in towns, townships, clusters of villages, stores, and trading points, and purchasing and selling agencies, linking production with consumption; facilitate, quickly, and effectively the sale of farmers' goods, provision of materials and goods serving production and daily life, primarily for rural residents, regulate the operation of the agricultural product sales network and supply of materials and goods for consumption in rural areas, creating a proactive and stable market situation.

2. Reform the organization and operations of trade and service cooperatives towards: rural buying and selling cooperatives organized in the form of joint-stock cooperatives to provide two-way services for household economies through agency purchasing and selling methods and bilateral contracts between one side being farmers (or their representatives such as groups of households) and the other side being enterprises; simultaneously, reform the capital contribution mechanism, management mechanism, labor utilization mechanism, and distribution mechanism of cooperatives to be compatible with the market mechanism.

Implement appropriate policies to encourage private trade (individuals and business households) and cooperatives to become the main sales agent network and basic partners signing and implementing contracts with enterprises for the marketing of agricultural products, supply of materials, and consumer goods to farmers.

3. Continue to develop the agency method so that it truly becomes an extension of enterprises in purchasing agricultural products and selling materials and consumer goods to farmers. Form an agency network of enterprises based on the demand for commodity circulation suitable to the characteristics and conditions of the locality. The main force of the agency network is cooperatives, individuals, business households, traders, merchants, warehouse owners, middlemen participating in handling consignment purchases and sales for enterprises.

Perfect the Agency Purchase and Sale Regulations to serve as the basis for signing and implementing agency contracts according to the law. Implement support policies regarding credit, commission, insurance, and technical assistance for both parties providing and receiving agency services.

4. Link the marketing of agricultural products with the supply of materials and consumer goods through contract signing and implementation. Marketing and material supply contracts must truly become a bridge between enterprises and farmers, closely and stably linking production with circulation.

First, base on the planning for production development in localities and regions, especially concentrated production and processing areas for export and raw material production for processing industries (rice, sugar cane, vegetables, fruits, coffee, pepper, cashew nuts, corn, peanuts, cotton, tea, livestock, poultry, and raw materials for handicrafts), to promote the signing of marketing and material supply contracts. On one hand, apply and implement support investment policies (land, seeds, fertilizers, feed, technical equipment, technology, infrastructure, training and professional instruction, etc.) for specialized concentrated areas; on the other hand, flexibly and reasonably apply regulations on: rewards based on contract performance results; participation in government agricultural product export contracts; trade promotion support, information provision, market access, advance provision of capital, seeds, fertilizers, feed, veterinary medicines, planting and breeding techniques and technology to support farmers in contract execution, ensuring harmonious benefits for all parties when executing contracts, encouraging enterprises and farmers to sign and fulfill contracts properly.

Focus on directing the signing and implementation of contracts for the marketing of agricultural products, supply of agricultural materials, and industrial consumer goods with farmers to be widely carried out and become the most reliable basis for both sides: enterprises and farm households, economic farm households (or their representatives such as groups of households) or through production teams, farms, cooperatives, or intermediary traders such as traders, merchants, middlemen, warehouse owners, etc.

Marketing and material supply contracts must be established and perfected both legally and economically for enterprises to use as a basis for investing in agriculture, and for farmers to use as a basis for contributing capital, purchasing shares, joint ventures with enterprises, or becoming satellites of enterprises, thereby creating a foundation for the construction and development of integrated agricultural-industrial-commercial complexes under mixed ownership, realizing the integration of farmers with industrial processors and traders, unifying agricultural production with industrial production and commodity circulation in rural markets.

State-owned enterprises must play a core role through the implementation of state mechanisms and policies, ensuring farmers' interests; at the same time, strengthen education and awareness of farmers' legal responsibility in fulfilling contractual obligations.

5. Develop the system of commercial infrastructure, mainly the network of various types and levels of markets. Implement immediately the planning and development of the network of various types and levels of markets for each locality and nationwide from now until 2010 in accordance with Decree No. 02/2003/NĐ-CP dated January 14, 2003 of the Government on the development and management of markets with forms such as: The State invests in building markets, enterprises directly manage and operate markets through bidding; The State supports investment in land and technical infrastructure or the State supports capital investment, enterprises, individuals, and business households jointly participate in building markets. To exploit markets effectively, their construction needs to be integrated with other economic and social development projects and programs in the area.

In the initial stage, it is necessary to focus on developing the following two types of markets:

- Commune markets, cluster commune markets, inter-commune markets, and town markets play the role of the starting point for wholesale agricultural products, the end point for wholesale materials and consumer goods, contributing to expanding exchange relations, stimulating the development of commodity economy, serving production and the daily life of rural residents within the commune and district.

- Centralized wholesale markets play the role of the end point for wholesale agricultural products, the starting point for wholesale materials and consumer goods, contributing to the development of production and circulation of goods in a region or area including many districts and neighboring provinces (including border markets which are centers for concentrating export and import goods across the border).

At the same time, it is necessary to gradually build and develop market information points, warehouses for storing goods, and forms of e-commerce organization, primarily serving the needs of production and circulation of goods in rural areas, creating a basis for the formation and development of rural trade centers, with centralized wholesale markets, warehouses for storing goods, and market information points as the core.

6. Organize the market information system from the Ministry of Commerce to provincial Departments of Commerce and enterprises. Study to establish market information points in specialized farming regions and rural markets by region (right next to centralized wholesale markets) with the main task of providing specific, practical, and fundamental information about market conditions both inside and outside the region. Coordinate the activities of these market information points with those of agricultural extension organizations, clubs, associations, and enterprises to influence investment orientation and economic structure adjustment according to market demand, ensuring that produced agricultural products have good competitiveness (good appearance, high quality, low cost).

7. Reform the organizational structure and activities of associations of producers, processors, and distributors of agricultural products to jointly grasp market demands, protect members' interests, insure against risks, and harmonize the interests between producers and traders in domestic and international markets. Associations must truly become support organizations for enterprises and farmers to improve production and trading skills, product quality, and reputation; build and protect brands for Vietnamese enterprises and products in domestic and global markets.

8. Strengthen the organization of trade fairs and exhibitions to promote, introduce, and advertise goods, connect buyers and business partners, and promote the circulation of goods and the development of rural markets. Combine guidance on consumer education and stimulation of increased demand with care and protection of consumers' rights.

9. Enhance the effectiveness and efficiency of state management of commerce. Continue to perfect the functions, tasks, powers, and responsibilities of state management agencies at all levels, especially at localities. Vigorously promote training and capacity building for cadres while reforming cadre recruitment, utilization, and management at all levels.

Guide the activities of provincial Departments of Commerce to focus on planning and developing trade, organizing the implementation of policies for circulating goods and expanding markets, providing market information, and promoting trade. Gradually strengthen the tools, means, and material conditions necessary as an economic foundation to organize the implementation of programs and projects for developing the circulation of goods and markets domestically, especially in rural areas under the functions, tasks, powers, and responsibilities of the state management system of commerce from central to local levels.

Strengthen both quantity and quality of market management, focusing on combating counterfeit, substandard, and non-compliant goods in terms of hygiene and safety for consumers and the ecological environment, particularly in rural markets. Combine guidance and organization of implementation with inspection of traders' compliance with trade laws. Consolidate market order while enhancing commercial civilization in rural areas.

Article 2. The Ministry of Commerce shall take the lead and coordinate with relevant ministries, sectors, and localities to concretize this Project into programs and projects with appropriate goals, solutions, and steps based on actual market conditions to organize and implement, aiming to create significant changes in the circulation of goods and domestic markets.

The Ministry of Commerce shall specify the time and content of reports evaluating the results of implementing the Project for relevant agencies; compile, report, and propose solutions to the Prime Minister to ensure the effective implementation of the Project.

Article 3. This Decision takes effect fifteen days after the date of signature.

Article 4. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of People's Committees of provinces and centrally governed cities are responsible for implementing this Decision.