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.