Decision No. 559/QD-TTg On approving the Market Development Program until 2010

Pursuant to …;

Regarding the approval of the market development program until 2010

___________________________

PRIME MINISTER

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

Pursuant to Decree No. 02/2003/NĐ-CP dated January 14, 2003 on the development and management of markets;

Considering the proposal of the Minister of Trade,

Pursuant to …;

Article 1. Approve the Market Development Program until 2010 with the main contents as follows:

I. OBJECTIVES OF THE PROGRAM

1. General objectives:

Develop and exploit effectively the network of markets with diversity in types and levels of markets; simultaneously innovate in organization and management of markets throughout all areas, especially rural and mountainous areas; contribute to expanding the market, promoting circulation of goods and service trade; consume more agricultural products and provide increasingly sufficient materials, goods for daily consumption, contributing to production development and improving people's lives, especially those in rural and mountainous areas.

2. Specific Objectives:

a) Stage 1 (from 2004 to 2005):

- Complete the work of planning the development of markets nationwide; based on this, develop plans to implement each year until 2010.

- 40% of market management staff in rural and mountainous areas and 60% of market management staff in urban areas will be trained and instructed in specialized skills for managing and operating markets at appropriate levels and forms of training.

- Form some wholesale markets for agricultural, forestry, aquatic, and marine products (collectively referred to as agricultural product markets) and type I markets according to the new model in key economic and commercial locations of regions or provinces (collectively referred to as provinces); complete the Coffee Market in Dak Lak and Phase I of the Rice Market in Can Tho, and the Agricultural Product Market in Nghe An by the end of 2005.

- In urban areas: integrate market planning with the planning for the development of supermarkets, wholesale centers, retail centers, and commercial centers; by the end of 2005, basically complete the repair and upgrading of large and central markets (which serve as hubs for commodity flow) and relocate all agricultural product wholesale markets within city limits to suburban areas; ensure that new residential areas have markets; eliminate all temporary and illegal markets causing disorder, environmental pollution, and traffic safety issues; gradually address the issue of street vending and sales on sidewalks to ensure urban and commercial civility.

- In rural areas: by the end of 2005, upgrade and renovate 25% of the markets currently in operation according to the plan; construct additional markets in new residential clusters and villages without markets but with a need for market activities, enhancing the role of markets in economic-commercial-service clusters in towns and market towns.

- In mountainous areas: complete the construction of markets in the centers of village clusters under economic and social development programs (according to the implementation plans of each program); complete the construction of 25% of border markets, customs markets, and markets within special economic zones according to the plan; maintain periodic markets to better meet the needs of exchange, purchase, and sale, and expand business points, thereby promoting the formation of factors of commodity production and meeting daily living requirements of ethnic groups.

b) Stage 2 (from 2006 to 2010):

- Markets in various areas (including wholesale agricultural product markets, type I markets in key locations, border markets, customs markets, and markets within special economic zones) according to the plan will be renovated, upgraded, or newly constructed towards solidification and gradual modernization; basically eliminating temporary, bamboo, and thatch markets.

- Markets according to the plan will have suitable management structures, mainly following the business enterprise and cooperative models for trading and managing markets.

- Basically complete the training and upgrading of specialized skills for market management staff (according to the plan) at appropriate levels and forms of training.

- Bring market operations into order and regularity, positively contributing to the organization and management of economic and social affairs, promoting the consumption of goods, facilitating consumers, and enhancing the effectiveness of state management over markets.

II. SCOPE OF THE PROGRAM

1. The program will be implemented nationwide; priority investment support will be provided for regions and localities with concentrated agricultural product production, border areas, and particularly difficult communes in mountainous, island, remote, and ethnic minority areas (where there is urgent demand for markets).

2. The implementation period of the program from 2004 to 2010 is divided into two stages:

- Stage 1: From 2004 to 2005.

- Stage 2: From 2006 to 2010.

III. MAIN CONTENTS OF THE PROGRAM

The main contents of the program include the construction and implementation of the following projects:

1. Planning the system of markets in provinces and nationwide.

2. Developing and promulgating technical standards and design models applicable to various types and levels of markets across the country.

3. Developing and implementing projects for wholesale agricultural product markets (regional and provincial level).

4. Developing and implementing projects for the development of market networks in mountainous, island, and ethnic minority areas (excluding wholesale agricultural product markets).

5. Developing and implementing projects for the development of market networks in urban and plain rural areas (excluding wholesale agricultural product markets).

IV. SOLUTIONS

1. Solutions regarding planning:

a) For provinces that had market planning before Decision No. 311/QĐ-TTg dated March 20, 2003 of the Prime Minister approving the Domestic Market Development Plan until 2010 and Decree No. 02/2003/NĐ-CP dated January 14, 2003 of the Government on the development and management of markets: it is necessary to prepare projects to amend, supplement, and perfect the planning for the development of the market system in the locality to align with new policies on commerce in general and market development and management in particular, in line with the socio-economic development of the locality.

b) For provinces without market planning: based on the overall socio-economic development plan and the specific trade development plan of the locality, it is necessary to conduct surveys and assess the current status of various types of markets; based on basic criteria such as population density, living habits, consumption preferences, supply capacity, circulation and exchange needs within and outside the locality, develop a project for planning the development of a market network that aligns with the state's policies and strategies, and fits the actual characteristics and conditions of the locality; on this basis, formulate plans for new construction, renovation, upgrading, and relocation of markets.

c) In the planning for developing the system of markets in provinces, it is necessary to identify a list of priority market projects, including phased steps for the period from 2004 to 2005, the period from 2006 to 2010, and annually.

d) For spontaneously formed markets that have not been planned and temporary markets: it is necessary to examine and evaluate each market individually; only include those currently operating effectively and meeting the buying and selling needs of the local population in the planning and develop plans for upgrading, renovating, or constructing new markets.

đ) Based on the National Socio-Economic Development Strategy, the Trade Development Plan, and the Market Network Development Plan of the provinces, develop an overall plan for the development of the trade sector's market network across the country.

2. Solutions regarding mechanisms and policies:

a) On investment:

- Investment activities in building markets enjoy preferential policies as stipulated in the Law on Encouraging Domestic Investment (amended) No. 03/1998/QH10 dated May 20, 1998, Decree No. 51/1999/NĐ-CP dated July 8, 1999 of the Government detailing the implementation of the Law on Encouraging Domestic Investment (amended), and Decree No. 35/2002/NĐ-CP dated March 29, 2002 on amending and supplementing List A, B, C issued pursuant to Decree No. 51/1999/NĐ-CP dated July 8, 1999 of the Government. Specifically, preferential tax policies for corporate income tax shall be implemented according to the Corporate Income Tax Law No. 09/2003/QH11 dated June 17, 2003 and Decree No. 164/2003/NĐ-CP dated December 22, 2003 of the Government detailing the implementation of the Corporate Income Tax Law.

- State budget funds for supporting the construction of markets shall be provided in accordance with Decree No. 02/2003/NĐ-CP dated January 14, 2003 of the Government on the development and management of markets.

- For markets in mountainous areas and border markets, state budget funds for supporting the construction of markets under this program shall be integrated with sources of funding from programs for economic and social development in mountainous regions already being implemented, such as Program 135, Poverty Reduction and Employment Program, etc. Specifically, national and international border gate markets, and markets within border economic zones shall apply preferential policies for border economic zones according to Decision No. 53/2001/QĐ-TTg dated April 19, 2001 of the Prime Minister on policies for border economic zones.

- Allocate an appropriate proportion of revenues from markets (excluding taxes) for reinvestment, primarily for repairing and upgrading severely deteriorated markets and markets that do not meet operational conditions.

b) Regarding finance and credit:

- The market management organization, whether structured as a management board or a business entity, must implement the principle of financial autonomy for units to balance their own revenues and expenditures, bear responsibility for their finances, and link this to operational efficiency and legal management.

- Strengthen tax revenue management for businesses operating outside markets to ensure no loss of revenue and fairness between businesses inside and outside markets.

- Provincial Tax Departments when allocating tax revenue targets to markets need to carefully survey and assess the actual situation and consult the opinions of the Tax Advisory Council at each market to set appropriate tax levels based on the sales volume of individual businesses.

- Business operators engaged in trading activities within markets that fall under the scope of Decree No. 20/1998/NĐ-CP dated March 31, 1998 and Decree No. 02/2002/NĐ-CP dated January 4, 2002 on policies for developing trade in mountainous areas, islands, and ethnic minority regions shall enjoy preferential treatment as prescribed in these Decrees. Specifically, preferential tax policies for corporate income tax shall be implemented according to the Corporate Income Tax Law No. 09/2003/QH11 dated June 17, 2003 and Decree No. 164/2003/NĐ-CP dated December 22, 2003 of the Government detailing the implementation of the Corporate Income Tax Law.

c) Regarding land:

- During the process of developing comprehensive or detailed planning for economic zones and new residential areas, provinces must allocate land for the construction of local markets.

- Position, location, and area of markets must be arranged in accordance with planning requirements to meet immediate market assembly needs and the potential for market scale expansion in subsequent phases.

3. Solutions for mobilizing and utilizing resources for market construction investment:

a) Identify and publicly announce the list of markets supported by the state for construction investment using central and local government budgets, along with the level of support; markets constructed using enterprise and individual capital, and the forms and extent of capital mobilization.

b) Implement socialization in the construction, renovation, and upgrading of local markets with the principle of state and people working together voluntarily and mutually benefiting, mainly through the following forms:

- Production and business entities requiring business in markets can invest capital in constructing markets or related infrastructure and participate in market management.

- Mobilize enterprises operating in the locality to contribute a portion of their marketing and advertising expenses for market construction; in return, they will be allocated a certain area in the market for product display.

- For large-scale markets, joint ventures and collaborations with domestic and foreign partners can be established to generate capital.

4. Solutions for training and developing market management personnel:

a) To address the situation where most managers of markets within the state's payroll are transferred from other sectors without specialized industry knowledge, primarily managing based on experience, it is necessary to organize training courses to enhance the knowledge of current market management for these officials and to train dedicated market management officials for localities over the long term.

b) The training program will be divided into two types with content suitable for the following two groups of participants:

- Group 1: State management officials regarding markets at Departments of Commerce, Industry and Trade Offices, or Financial Planning and Trade Offices at counties, towns, cities under provinces; Chairpersons of People's Committees at communes, wards, towns.

- Group 2: Officials of Market Management Boards, businesses and cooperatives operating markets, Market Management Teams, and staff directly involved in market management work.

c) Provinces shall coordinate with schools under the Ministry of Commerce to organize training and enhancement courses for the cadre of market management officials, civil servants, employees, and staff. Additionally, provinces may independently organize short-term training, enhancement, and instruction sessions locally with appropriate formats.

V. SOURCES OF FUNDS AND USE OF FUNDS

1. Sources of funds for the Program:

The funds for implementing the Program will be raised from state development investment capital (including central and local government budgets and non-repayable aid), credit loans, production and business entities' capital, contributions from the public, and other lawful sources. Among these, the capital from enterprises, individual traders, organizations, individuals, community residents, etc., is the main source of funding for the Program to develop markets until 2010.

a) State budget:

- Utilize the state budget to implement projects on planning the development of market networks nationwide and within each province.

- The state budget will support the construction of technical infrastructure for projects:

+ Construction of agricultural product wholesale markets:

Provinces will primarily use local government budgets and mobilize other sources of capital, with the central government providing partial support for the construction of technical infrastructure for regional-level and provincial-level agricultural product wholesale markets.

+ Construction of markets in clusters of highland, remote, and island areas under national economic and social development programs, poverty reduction programs, and settlement programs:

Given that the state budget allocated for constructing markets in cluster centers (under Program 135) and markets in particularly difficult communes (Poverty Reduction and Employment Programs) is low, the central government will provide additional support (specific amounts based on provincial People's Committee proposals) for markets that have not been completed due to insufficient investment funds in areas where markets are needed to meet production, business, and living needs.

Among the markets under Program 135, priority investment support will be given to border markets (as planned) that are currently operational but not yet permanent or semi-permanent.

Investment capital for building national and international border markets, and markets in border economic zones according to Decision No. 53/2001/QĐ-TTg dated April 19, 2001, of the Prime Minister on policies for border economic zones.

+ Type I markets according to planning in key economic trade locations of provinces and cities, serving as centers for commodity exchange and meeting the consumption needs of large cities and towns.

b) Credit capital:

Investors in projects to develop market networks shall borrow funds from credit institutions in accordance with current regulations.

c) Capital raised from production and business entities and the public:

Investors in projects to develop market networks shall raise capital from enterprises, organizations, individuals, traders, community residents, and other lawful sources to construct market buildings, stalls, counters, service facilities, and other market components.

2. Management and use of state budget funds:

Ministries and provincial People's Committees responsible for state budget funds for implementing Program projects must manage and use these funds for their intended purposes, for the designated beneficiaries, and in accordance with current state regulations. The allocation of central government budget funds for implementing Program projects in localities according to annual plans will prioritize the development of agricultural product wholesale markets in areas with developed commodity economies, border markets, mountain markets, island markets, and markets in ethnic minority areas as approved by competent authorities.

VI. IMPLEMENTATION

1. Responsibilities of Ministries and Sectors:

a) The Ministry of Commerce is the agency responsible for directing and implementing the Program nationwide and has the responsibility to:

- Develop overall plans and annual plans to implement the Program; direct and guide provincial People's Committees in formulating implementation plans for the Program.

- Lead and coordinate with the Ministry of Planning and Investment, the Ministry of Agriculture and Rural Development, the Ministry of Fisheries, the Ministry of Construction, the Ministry of Natural Resources and Environment, and relevant ministries and sectors, as well as provincial People's Committees, to formulate the project on planning the market network nationwide, to be implemented from 2004 to 2005.

- Lead and coordinate with the Ministry of Construction to issue technical standards and design models for various types and levels of markets, to be implemented in 2004.

- Guide and direct provinces in formulating projects on planning and developing market networks in their respective areas; coordinate with the People's Committees of Can Tho City, Dak Lak Province, Nghe An Province, and relevant ministries and sectors to pilot three regional-level agricultural product wholesale markets according to new models: Rice Market in Can Tho City, to be implemented from 2004 to 2010, Phase I (from 2004 to 2005); Coffee Market in Dak Lak Province, to be implemented from 2004 to 2005; Agricultural Products Market in Nghe An Province, to be implemented from 2004 to 2010, Phase I (from 2004 to 2005); subsequently, summarize and perfect the model for dissemination and expansion.

- Direct localities to implement the Program according to the plan; organize inspections and evaluations of the progress of the Program's implementation at localities; periodically every six months and annually, compile the results of the Program's implementation and report to the Prime Minister.

- Delegate the Minister of Trade to establish the Steering Committee for the Market Development Program until 2010 (referred to as the Steering Committee), chaired by a Deputy Minister of Trade and including representatives from relevant Ministries and sectors; develop the content and operational regulations of the Steering Committee and inter-ministerial coordination mechanisms to implement the Program; the operating budget of the Steering Committee shall be self-balanced by the Ministry of Trade.

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

- Coordinate with the Ministry of Trade, relevant Ministries and sectors, and People's Committees of provinces in developing the Master Plan for the development of market networks nationwide.

- Annually, develop and submit to the Government for approval the investment plan for building markets funded or supported by the State.

- Examine and appraise projects under the Program within the functions, tasks, and authorities of the Ministry of Planning and Investment as prescribed by law.

- Chair and coordinate with the Ministry of Finance, the State Bank of Vietnam, the Ministry of Trade, and related agencies to devise solutions to balance funds and allocate them according to the annual plan for submission to the Government for decision-making to invest in implementing Program projects (projects using state budget funds).

c) The Ministry of Natural Resources and Environment shall chair and coordinate with the Ministry of Planning and Investment, the Ministry of Construction, and the Ministry of Trade to guide localities on land use for implementing the Program.

d) The Ministry of Transport, the Ministry of Construction, and the Ministry of Posts and Telecommunications shall assist provinces in devising solutions for infrastructure construction such as roads, postal services, telecommunications, etc., to facilitate market construction and operation, as well as to maintain the landscape and environment.

2. Responsibilities of Provincial People's Committees:

a) Develop annual plans for implementing the Market Development Program to submit to the Government and report to the Steering Committee. This plan shall be included in the provincial socio-economic development plan (recorded as a separate item), with a budget estimate for implementing the Program, including specific proposals for central government funding support.

b) Chair and coordinate with the Ministry of Trade, the Ministry of Planning and Investment, and relevant Ministries and sectors to develop and implement projects: master planning for market network development within the province; constructing wholesale agricultural and food markets at regional and provincial levels; developing market networks in mountainous, island, and ethnic minority areas; developing market networks in urban and rural plains areas.

Implementation time for these projects from 2004 to 2010. Completion time for each project will be based on specific targets set out in the Program.

c) Develop and promulgate mechanisms, policies, and solutions to mobilize and utilize local resources, especially those of production and business entities and residents in the locality, to implement assigned tasks and projects in the Program.

d) During the process of building markets, assign grassroots authorities to organize the implementation of tasks that local residents can undertake to contribute to job creation and income increase for part of the population while enhancing residents' sense of responsibility in managing and utilizing markets in the future.

e) Direct and implement combined inspection and supervision of the implementation of policies and measures regarding market development and management in the province, the implementation of Program projects, particularly in the field of basic construction investment (implementing projects to renovate, upgrade, relocate, and construct new markets in the locality) according to the plan, in compliance with regulations, ensuring quality, preventing waste and corruption.

f) Provincial People's Committees shall establish the Program Management Board (referred to as the Management Board), chaired by a Vice Chairman of the Provincial People's Committee, with the Deputy Director of the Department of Trade serving as a permanent member; the operating budget of the Management Board shall be self-balanced by the Provincial People's Committee. The Management Board shall implement the Program according to its functions, tasks, authorities, and responsibilities stipulated by the Chairman of the Provincial People's Committee; implement directives and guidance from the Steering Committee, assist Provincial People's Committees in effectively organizing the implementation of assigned Program projects.

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

Article 3. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairmen of Provincial People's Committees directly under the Central Government are responsible for enforcing this Decision.