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Positive changes in market development and management (28/5)

28/05/2013 - 14 Lượt xem

Department of Domestic Market of the Ministry of Industry and Trade Deputy Head Nguyen Xuan Chien talked about market development and management in an interview with Vietnam Economic News' reporter Lan Phuong.
Could you tell us more about outstanding results in the development process of the market system?
After the implementation of two decrees, in terms of quantity, the country has about 8,547 markets with 97 percent of them efficient in terms of their operation. More than 500 market and cooperative management models have been put into operation and have achieved positive results. In general, market development and management has seen positive changes.
How do you evaluate the attraction of investment capital?
An issue in terms of attracting investment capital in Decree 02/2003/ND-CP which pointed out that capital should be raised from a variety of sources. The state primarily provides capital for the construction of infrastructure, large-scale agricultural wholesale markets and the market system in poor provinces. The remainder is primarily raised from businesses, cooperatives and other providers. In recent times, many localities have successfully attracted investment capital.
The BOT, BT, BTO projects have not received incentives. How can this problem be resolved in the near future?
Numerous markets have been invested through Build-Operate-Transfer (BOT), Build-Transfer (BT) and Build-Transfer-Operate (BTO) contracts. However, these projects have not benefited from government incentives due to regulations in Decree 108/2009/ND-CP. Therefore, the Ministry of Industry and Trade is proposing to the prime minister to amend Decree 108/2009/ND-CP to help investors enjoy tax incentives. In addition, according to regulations, the BOT, BT and BTO projects must be consulted by the government. Therefore, the Ministry of Industry and Trade is also proposing to delegate powers to provincial chairmen to implement consultancy, contributing to simplifying administrative procedures and avoiding creating inconvenience to businesses.
What were the reasons for the disappointing results of attempts to combine shopping centers and traditional markets?
There were many reasons for this issue. Firstly, the design of these projects wasn’t logical. Traditional markets are based on convenience while commercial centers don’t necessarily make that a central point of their shopping experience. Secondly, the way in which traditional market stalls were arranged in these new developments didn’t match Vietnamese consumer habits. Thirdly, ground rental fees are higher than the average income of business households. Finally, traditional markets and commercial centers have different characteristics, which led to unfair competition.
What would make these combined outlets work?
It is necessary to comprehensively evaluate the combination of modern style shopping centers and traditional markets. Based on this evaluation, the government will work on solutions to ensure they work better. In addition, legal documents related to the development of this model are lacking. Therefore, the government should supplement documents in order to create a legal framework for this model. In particular, the government should ensure a harmony of interests between investors and the owners of supermarkets, commercial centers and traditional markets in order to encourage better efficiency./.

Source: VEN.