Long-term strategy

  • Scheme on rural trade development orientation toward 2020

  • Wednesday, 3/15/2017

  • AsemconnectVietnam - To develop rural trade steadily and strongly toward civilization and modernity with the participation of different economic sectors and diversified forms of distribution, services and business modes; to contribute to orienting and boosting agricultural production development; to fully and promptly meet production and consumption demands in rural areas as a basis to restructure the rural economy, eliminate hunger, reduce poverty and create a premise for proactive and successful international economic and trade integration in rural areas.

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    I. Development objectives
    1. General objectives
    To develop rural trade steadily and strongly toward civilization and modernity with the participation of different economic sectors and diversified forms of distribution, services and business modes; to contribute to orienting and boosting agricultural production development; to fully and promptly meet production and consumption demands in rural areas as a basis to restructure the rural economy, eliminate hunger, reduce poverty and create a premise for proactive and successful international economic and trade integration in rural areas.
    2. Specific targets
    - The total retail sales of goods and services (not yet excluding the price element) in rural areas will annually grow at around 22% during 2010-2015 and around 20% during 2016-2020 on average.
    - By the end of 2015, trading cooperatives in rural areas will be basically reviewed, evaluated and reorganized.
    - By 2015, planning on commercial infrastructure development in rural areas will be completed, including border marketplace planning.
    - By 2015, farm produce wholesale marketplaces will be built and put into use in commodity production zones under approved planning.
    - By 2015, 50% of border and border-gate marketplaces and marketplaces in border-gate economic zones will be upgraded and improved or built; 100% of central marketplaces of districts will be built with permanent structures; and 30% of townships will have small and medium distribution networks.
    - By 2015, 25-30% of farm produce will be sold under contracts and the rate will reach 45-50% by 2020.
    - By 2020, all communes will have marketplaces up to new-style countryside standards; farm produce wholesale marketplaces, border and border-gate marketplaces, and marketplaces in border-gate economic zones will be upgraded and improved or built: and 80% of townships will have small and medium distribution networks. To form a rice exchange in Can Tho, a coffee exchange in Dak Lak, and some farm produce auction centers.
    - State management effect and effectiveness, especially management of food quality, hygiene and safety with respect to goods circulated on the market, will be raised.
    II. Development orientations
    1. To develop rural trade as follows:
    1.1. Commercial structure in communes, including:
    - Network of marketplaces for people's livelihood (being the main form of trade in communes up to 2015 and 2020).
    - Business network of business individuals and households, including farmer households engaged in both production and trade.
    - Business network of small- and medium-size trading cooperatives in communes and commune clusters, mainly providing services for production and sale by cooperative members, households and farms and for daily-life activities of rural inhabitants.
    1.2. Commercial structure in townships and townlets, including:
    - Business network of goods producers, processors and distributors and cooperatives and unions of trading cooperatives having branches, shops and small processing, sorting, packing, preserving and storing establishments; production enterprises, stations and farms and storage grounds and base and transit warehouses in townships and townlets.
    - Business network of business households with such basic business modes as households doing business in communes on a larger scale or with a modern business mode (franchising, business chain, e-commerce) earlier.
    - Network of central marketplaces of districts, marketplaces for people's livelihood and some types of organized distribution such as supermarkets, small and medium trade centers (mostly of grade III), specialized shops, convenience stores gradually formed under planning.
    1.3. Development of particular commercial organizations:
    In consolidated commodity farm production zones or outskirts, to continue improving and upgrading or building general wholesale marketplaces or those particularly for wholesale of farm produce and agricultural supplies, creating a premise to form farm produce auction and trading centers; to concurrently develop floating marketplaces on rivers, border and border-gate marketplaces and marketplaces in border-gate economic zones.
    2. Organizing commodity-based trade networks
    2.1. For farm produce
    - In consolidated commodity farm production zones, to form large sale channels involving core enterprises (100% state-owned enterprises, equitized state enterprises); enterprises of different economic sectors, cooperatives, unions of trading cooperatives, business households, sale agents, regional- and provincial-level farm produce wholesale marketplaces. To combine these channels with pilot models to sell essential farm produce (paddy, rice, peanuts, vegetables, fruits, aquatic products, salt) under contracts signed with cooperatives right from the beginning of production crops.
    - In areas with underdeveloped and scattered commodity farm production, to form medium and small circulation channels suitable to market supply and demand involving enterprises, trading cooperatives and business households. To sell farm produce mostly through marketplaces, supermarkets, convenience stores and specialized shops in townships and townlets; marketplaces for people's livelihood and groceries in communes. To combine this channel with pilot models to sell essential farm produce (paddy, rice, peanuts, vegetables, export fruits, aquatic products, and salt) under economic contracts signed with business households at harvest time.
    - In raw material zones in service of processing industries, to establish sustainable economic relations between farmer households, trading cooperatives and producers-processors, between producers-processors and traders; to develop mechanisms allowing production households and cooperative members to buy shares of joint stock companies or equitized state enterprises.
    2.2. For agricultural supplies
    To develop trade networks towards consolidating and completing networks of production supplies marketplaces, distribution and agent systems, and trading establishments of production and business entities. To build pilot models to provide agricultural production supplies (fertilizers, plant protection drugs) associated with pilot models to sell farm produce.
    2.3. For industrial consumer goods
    - Based on needs, tastes and income levels of rural inhabitants, to establish consumer goods trading networks with scales and modes suitable to each locality; to develop general marketplaces and systems of sale agents and shops in commune clusters, business establishments of enterprises, trading cooperatives and business households.
    - To step by step develop chains of convenience stores, supermarkets and trade centers in the course of improving traditional marketplaces in rural areas, initially in marketplaces in townships and townlets.
    3. To develop marketplaces in rural areas
    3.1. For rural delta areas
    - To relocate, improve and upgrade or build grade-Ill marketplaces for people's livelihood in communes.
    - To upgrade, improve, expand or build general wholesale and retail marketplaces of grade II or I in district economic centers.
    - To build large-scale farm produce wholesale marketplaces in regional and provincial commodity production zones.
    3.2. For rural midland and mountainous areas
    Apart from developing farm produce wholesale marketplaces in consolidated commodity production zones and marketplaces for people's livelihood in communes and district centers, to attach importance to upgrading and improving or building grade-Ill border marketplaces, and border-gate marketplaces and marketplaces in border-gate economic zones of grades II and I.
    4. To manage marketplaces in rural areas
    To develop enterprises or cooperatives to operate and manage markets according to the following models:
    4.1. Enterprises or cooperatives specialized in marketplace operation and management or those with multiple business lines, including marketplace operation, through bidding or assignment of rights to use, operate and manage marketplaces (for marketplaces invested or supported by the State).
    4.2. Enterprises or cooperatives specialized in marketplace operation and management or those with multiple business lines, including marketplace operation, investing in, operating and managing marketplaces.
    Depending on specific conditions, one enterprise or cooperative may manage one or more marketplaces.
    5. To orient the organization and operation of key traders
    5.1. For trading cooperatives and unions of cooperatives
    - To review, evaluate, classify and reorganize existing trading cooperatives and unions of cooperatives in rural areas.
    – To develop trading cooperatives according to the following models:
    + In rural delta areas: To develop multifunctional cooperatives or general service cooperatives; to attach importance to agriculture-trade-service cooperatives serving agricultural production;
    + In rural midland and mountainous areas: To develop multifunctional cooperatives, general trading cooperatives with flexible retail modes; to develop groups of cooperatives operating under the common purchase and sale or common purchase-separate sale mode or service groups for mutual support in production and business and daily life in areas lacking conditions to establish cooperatives;
    + To develop marketplace cooperatives in delta, midland and mountainous areas, attaching importance to developing cooperatives with members being traders in marketplaces.
    - To develop unions of trading cooperatives toward consolidating existing units; to establish unions of trading cooperatives combining traditional and modern business modes in provinces with developed household and farm economy.
    5.2. For private trade
    - To encourage the development of types of private trade under the Enterprise Law.
    - To encourage business households to develop by:
    + Participating in the business system of enterprises of different economic sectors, unions of cooperatives and trading cooperatives through purchase and sale agency and contracts; participating in distribution chains through partnership, joint venture and commercial franchising;
    + To develop or enter into partnership or merge into retail companies or cooperatives; to step by step apply the retail chain model and commercial franchising, initially in townships and townlets;
    + Traders in marketplaces joining marketplace cooperatives will concurrently act as members of market cooperatives and users of their services.
    III. MAJOR SOLUTIONS AND POLICIES
    1. Planning on commercial infrastructure development
    1. Provincial-level People's Committees shall elaborate or adjust plans on commercial infrastructure development in rural areas, focusing on market network planning, in conformity with trade development master plans.
    2. Investment policies
    2.1. Investment projects on commercial infrastructure in rural areas are entitled to investment incentives under the Government's Decree No. 108/2006/ND-CP of September 29, 2006, detailing and guiding a number of articles of the Investment Law; and may take state investment credit loans under the Government's Decree No. 151/2006/ND-CP of December 20, 2006, on state investment credit and export credit, and the Government's Decree No. 106/2008/ND-CP of September 19, 2008, amending and supplementing a number of articles of Decree No. 151/2006/ND-CP.
    2.2. To amend and supplement policies to provide investment capital support from the state budget for some types of essential commercial infrastructure in rural areas with socio-economic difficulties and exceptional socio-economic difficulties.
    3. To pilot agricultural production insurance for a number of agricultural and aquatic products in some areas.
    4. To raise market management effect and effectiveness
    To regularly examine business establish­ments, especially in marketplaces, in complying with the law on food hygiene and safety and environmental sanitation, preventing and controlling epidemics, publicly posting prices and selling goods at posted prices; to strictly handle violations under current law.
    5. To formulate and implement projects: Provincial-level People's Committees, the Ministry of Industry and Trade and concerned ministries and branches shall formulate and implement projects to develop rural trade according to the list in the Appendix to this Decision.
    IV. Organization of implementation
    1. Responsibilities of ministries and branches
    1.1. The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with concerned ministries and branches in:
    - Directing and guiding provincial-level People's Committees in implementing the Scheme.
    - Directing and guiding localities in reviewing, adjusting or elaborating plans to develop commercial infrastructure and trade networks in rural areas.
    - Annually summarizing capital needs to implement projects under the Scheme and sending them to the Ministry of Planning and Investment and the Ministry of Finance for submission to the Prime Minister.
    - Implementing assigned projects under this Decision.
    1.2. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Finance and the Ministry of Industry and Trade in:
    - Allocating funds under annual plans to implement projects specified in this Decision.
    - Reviewing and proposing the Government to amend and supplement policies to provide incentives and investment supports from the state budget for major commercial infrastructure projects in rural areas.
    1.3. The Ministry of Agriculture and Rural Development shall assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade and concerned ministries and branches in, proposing the Prime Minister to amend and supplement mechanisms and policies to encourage sale of farm produce under contracts.
    1.4. The Ministry of Natural Resources and Environment shall assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade and concerned ministries and branches in, directing and guiding localities in reviewing land use plans, balancing and allocating land funds in conformity with plans on commercial infrastructure development in rural areas.
    1.5. The Vietnam Union of Cooperatives shall assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade and concerned ministries and branches in, directing and guiding provincial-level unions of cooperatives in propagating and disseminating laws, mechanisms and policies on trade to collective economic sectors and typical cooperatives and unions of trading cooperatives in rural areas.
    2. Responsibilities of provincial-level People's Committees
    - To elaborate annual plans and make cost estimates for projects under the Scheme.
    - To proactively allocate local budgets in combination with central budget supports to implement assigned projects under the Scheme under this Decision.
    - To raise the effect and effectiveness of control of smuggling, production and trading in fake and poor quality goods; fight against violations of the law on pricing, tax avoidance and evasion and other trade frauds; to strictly handle violations.
    - To allocate funds and assign specialized personnel and working means for provincial-level Industry and Trade Departments and district-level Industry and Trade Divisions and professional sections in communes to advise People's Committees at all levels in performing the state management of trade activities in rural areas.
    - To monitor, urge and examine the implementation of projects; to biannually report on implementation results to the Ministry of Industry and Trade for summarization and reporting to the Prime Minister.

    APPENDIX
     
    LIST OF MAJOR PROJECTS UNDER THE SCHEME ON RURAL TRADE DEVELOPMENT ORIENTATIONS TOWARD 2020
     
    Project
    Project objectives
    Implementing agencies
    Implementation duration
    Funds
    Key agency
     
    I. Planning on rural commercial infrastructure development
    To adjust or elaborate master plans on rural commercial infrastructure development, facilitating the implementation of investment projects on commercial infrastructure development in localities and attracting investment capital
    Provincial-level People's Committees
    Ministry of Industry and Trade, Ministry of Agriculture and Rural Development, Ministry of Planning and Investment
    2010-2020
    Total funds are estimated at VND 31.5 billion (VND 500 million/master plan x 63 provinces). to be funded by local budgets.
    II. Projects to develop rural marketplaces
    1. Project to develop farm produce wholesale marketplaces
    To improve and upgrade 31 marketplaces; to build 82 farm produce wholesale marketplaces in rural areas
    Provincial-level People's Committees
    Ministry of Industry and Trade, Ministry of Agriculture and Rural Development, Ministry of Planning and Investment
    2010 - 2020
    Total investment capital is estimated at VND 6,040 billion (VND 5,641 billion for 2010-2015 and VND 399 billion for 2016-2020), which will come mostly from production and business entities of economic sectors and loans; the state budget will support investment in infrastructure construction (the central budget will support investment in infrastructure of farm produce wholesale or general marketplaces in agricultural, forestry and aquatic production zones).
    2. Project to develop border and border-gate marketplaces and marketplaces in border-gate economic zones
    To improve and upgrade 142 marketplaces; to build 276 marketplaces
    Provincial-level People's Committees
    Ministry of Industry and Trade, Ministry of Agriculture and Rural Development, Ministry of Planning and Investment
    2010 - 2020
    Total investment capital is estimated at VND 1,534 billion (VND 1,034 billion for 2010-2015 and VND 500 billion for 2016-2020) which will come mostly from production and business entities of economic sectors and loans. The central budget will support investment in border marketplaces in areas with socio-economic difficulties and exceptional socio-economic difficulties.
    3. Project to develop marketplaces for people's livelihood in communes
    To build 3,000 marketplaces in 3,000 communes without marketplaces (excluding border marketplaces)
    Provincial-level People's Committees
     
    2010 - 2020 (to build 1,500 marketplaces during 2010-2015 and another 1,500 during 2016-2020)
    Total investment capital is estimated at VND 1.5 trillion (VND 500 million/market on average), including capital of enterprises, cooperatives, business households and loans in combination with state budget capital. The central budget will support investment in marketplaces in areas with socio­economic difficulties and exceptional socio-economic difficulties.
    III. Projects to build pilot models to sell farm produce and provide agricultural supplies
    1. Project to build the enterprise/union of cooperatives-cooperatives-farmer model
    To study and build pilot models to sell farm produce and provide agricultural supplies in consolidated agricultural production zones
    People's Committees of Lao Cai, Son La, Bac Giang, Hai Duong, Thai Binh, Nam Dinh, Thanh Hoa, Binh Thuan, Lam Dong, An Giang, Dong Thap and Tien Giang provinces
    Ministry of Industry and Trade, Ministry of Agriculture and Rural Development, Vietnam Union of Cooperatives
    2010-2015
    Total funds are estimated at VND 6 billion (VND 500 million/project x 12 provinces), to be funded by the central budget.
    2. Project to build the enterprise-business household-farmer model
    To study and build pilot models to sell farm produce and provide agricultural supplies in non-consolidated agricultural production zones
    People's Committees of Lao Cai, Son La, Bac Giang, Hai Duong, Thai Binh, Nam Dinh, Thanh Hoa, Binh Thuan, Lam Dong, An Giang, Dong Thap and Tien Giang provinces
    Ministry of Industry and Trade, Ministry of Agriculture and Rural Development, Vietnam Union of Cooperatives
    2010-2015
    Total funds are estimated at VND 6 billion (VND 500 million/project x 12 provinces), to be funded by the central budget.
    IV. Projects to raise human resource quality
    1. Project to train and retrain 252 chairmen of trading cooperatives
    To improve knowledge on trade and management capacity for 252 chairmen of trading cooperatives (4 persons/province)
    Ministry of Industry and Trade
    Ministry of Planning and Investment, Ministry of Finance, Ministry of Agriculture and Rural Development, Vietnam Union of Cooperatives and provincial-level People's Committees
    Expectedly around 5 year (2010-2015)
    Total funds are estimated at VND 810,280.000 (eight hundred and ten million two hundred eighty thousand), to be funded by the central budget.
    2. Project to train and retrain 1,000 marketplace managers
    To improve trade skills and marketplace management and operation capacity
    Ministry of Industry and Trade
    Ministry of Planning and Investment, Ministry of Finance, Ministry of Agriculture and Rural Development, Vietnam Union of Cooperatives and provincial-level People's Committees
    Expectedly around 5 years (2010-2015)
    Total funds are estimated at VND 1,027,660,000 (one billion twenty seven million six hundred and sixty thousand), to be funded by the central budget.
    3. Project to train and retrain 10.000 business households
    To train and retrain in knowledge on trade for business households in rural areas, contributing to improving their business efficiency in selling farm produce and providing production input supplies
    Ministry of Industry and Trade
    Ministry of Planning and Investment, Ministry of Finance, Ministry of Agriculture and Rural Development, Vietnam Union of Cooperatives and provincial-level People's Committees
    Expectedly around 5 years (2010-2014)
    Total funds are estimated at VND 6,572,940,000 (six billion five hundred seventy two million nine hundred forty thousand), to be funded by the central budget.

    Long Giang
    Source: www.mpi.gov.vn

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