Decision No. 1371/2004/QD-BTM dated September 24, 2004 of the Ministry of Trade issuing the regulation on department stores and trade centers

DECISION

ISSUING THE REGULATION ON DEPARTMENT STORES AND TRADE CENTERS

THE MINISTER OF TRADE

Pursuant to the Government's Decree No.29/2004/ND-CP of January 16, 2004 defining the functions, tasks, powers and organizational structure of the Ministry of Trade;

Pursuant to the Prime Minister's Directive No.13/2004/CT-TTg of March 31, 2004 on the implementation of a number of major solutions to vigorous development of the domestic market;

To step by step conduct the standardization in service of the work of planning development, managing construction and business operations of modern trade organizations of all types, thus meeting the socio-economic development requirements and people's consumption demands;

At the proposal of the director of the Department for Domestic Market Policy,

DECIDES:

Article 1.- To issue together with this Decision the Regulation on Department Stores and Trade Centers.

Article 2.- This Decision takes effect 15 days after its publication in the Official Gazette.

Article 3.- All previous regulations on department stores and trade centers, which are contrary to the provisions of the Regulation issued together with this Decision, are hereby annulled.

Article 4.- The presidents of the People's Committees of the provinces and centrally-run cities, the directors of the provincial/municipal Trade Services; the directors and the heads of the concerned departments under the Trade Ministry shall have to implement this Decision.

REGULATION

ON DEPARTMENT STORES AND TRADE CENTERS

(Issued together with the Trade Minister's Decision No.1371/2004/QD-BTM of September 24, 2004)

Chapter I

GENERAL PROVISIONS

Article 1.- Scope of regulation and subjects of application

This Regulation prescribes criteria for, and the management of operations of, department stores and trade centers, and applies to traders doing business with department stores or trade centers.

Article 2.- Interpretation of words and phrases

A number of words and phrases in this Regulation are construed as follows:

1. Department stores constitute a type of modern stores; being general or specialized; having abundant and diversified kinds of goods with assured quality; meeting criteria on business space, technical facilities and management as well as business organization capabilities; adopting civilized and convenient service modes so as to satisfy the customers' shopping demand.

2. Trade centers constitute a type of modern and multifunctional commercial business organizations, comprising groups of assorted stores and service-providing establishments; meeting halls, seminar rooms, offices for lease…arranged concentrically and in chain within one or a number of adjacent architectural works; meeting criteria on business space, technical facilities and management as well as business organization capabilities; adopting civilized and convenient service modes, thus meeting the traders' demand for business operation development and customers' demand for goods and services.

3. Business space means the flooring space (including passages) of all floors arranged for business activities of department stores or trade centers.

4. Name of goods means the appellation of a goods item or the appellation or sign of one particular pattern of a goods item that differentiates it from another particular pattern of that item.

5. Traders doing business with department stores or trade centers mean traders who organize the management and administration of operations of department stores or trade centers.

Chapter II

CRITERIA FOR DEPARTMENT STORES, TRADE CENTERS AND GOODS AND SERVICES TRADED THEREIN

Article 3.- Criteria for department stores

To be called a department store and graded as a department store, a commercial business establishment must have business location in line with the commercial network development planning of the province or city and have business scale and organizing capability meeting the basic criteria for one of the three following grades of department store:

1. Grade-I department stores:

1.1. For a general department store:

1.1.1. Having a business space of 5,000 m² or more;

1.1.2. Having a list of 20,000 goods names or more;

1.1.3. Having solid and highly-aesthetical architectural works with advanced and modern designs and technical facilities, meeting the requirements of fire prevention and fighting, environmental sanitation, safety and convenience for all kinds of customer; having car parks and rest rooms for customers, suitable to business scale of the department store.

1.1.4. Having a system of advanced and modern warehouses and technical equipment for preservation, preliminary processing, packaging, sale, payment and business management;

1.1.5. Organizing and arranging goods according to commodity lines or commodity groups in a civilized and scientific manner for convenient and fast selection, purchase and payment by customers; having lockers for personal belongings; providing catering and entertainment services, services for the handicapped and children, home-delivery service, and services of goods sale via Internet, post and telephone.

1.2. For a specialized department store: The criterion at Point 1.1.1 shall be 1,000 m² or more; the criterion at Point 1.1.2 shall be 2,000 goods names or more while the other criteria shall be the same as for general department stores.

2. Grade-II department stores:

2.1. For a general department store:

2.1.1. Having a business space of 2,000 m² or more;

2.1.2. Having a list of 10,000 goods names or more;

2.1.3. Having solid and aesthetical architectural works with modern designs and technical facilities, meeting the requirements of fire prevention and fighting, environmental sanitation, safety and convenience for customers; having car parks and rest rooms for customers, suitable to business scale of the department store.

2.1.4. Having modern warehouses and technical equipment for preservation, packaging, sale, payment and business management;

2.1.5. Organizing and arranging goods according to commodity lines or commodity group in a civilized and scientific manner for convenient and fast selection, purchase and payment by customers; having lockers for personal belongings; providing catering and entertainment services, services for the handicapped and children, home-delivery service, and services of goods sale via post and telephone.

2.2. For a specialized department store: The criterion at Point 2.1.1 shall be 500 m² or more; the criterion at Point 2.1.2 shall be 1,000 goods names or more while the other criteria shall be the same as for a general department store.

3. Grade III-department stores:

3.1. For a general department store:

3.1.1. Having a business space of 500 m² or more;

3.1.2. Having a list of 4,000 goods names or more;

3.1.3. Having solid architectural works with designs and technical facilities meeting the requirements of fire prevention and fighting, environmental sanitation, safety and convenience for customers; having car parks and rest rooms for customers, suitable to business scale of the department store.

3.1.4. Having modern warehouses and technical equipment for preservation, packaging, sale, payment and business management;

3.1.5. Organizing and arranging goods according to commodity lines or commodity groups in a civilized and scientific manner for convenient and fast selection, purchase and payment by customers; having lockers for personal belongings; providing services for the handicapped and home-delivery service.

3.2. For a specialized department store: The criterion at Point 3.1.1 shall be 250 m² or more; the criterion at Point 3.1.2 shall be 500 goods names or more while the other criteria shall be the same as for a general department store.

Article 4.- Criteria for trade centers

To be called a trade center and graded as a trade center, a commercial business establishment must have business location in line with the commercial network development planning of the province or city and have business scale and organizing capability meeting the basic criteria for one of three grades of trade center according to the following provisions:

1. Grade-I trade center:

1.1. Having a business space of 50,000 m² or more and car parks suitable to its business scale.

1.2. Having solid and highly-aesthetical architectural works with advanced and modern designs and technical facilities, meeting the requirements of fire prevention and fighting, environmental sanitation, security, safety and convenience for all subjects involved in business activities within the center.

1.3. Conducting multifunctional operations with both goods trading and service provision, covering: the area for wholesale and retail shops; restaurants and hotels; the area for trade fairs and exhibitions to display goods; the area for entertainment activities, offices for lease, meeting halls and seminar rooms for organization of conferences, symposiums, transactions and conclusion of commercial contracts between domestic and foreign parties; the area for financial, banking, insurance, post and telecommunication, informatics, investment, tourist consultancy or brokerage activities.

2. Grade-II trade center:

2.1. Having a business space of 30,000 m² or more and car parks suitable to its business scale.

2.2. Having solid and aesthetical architectural works with advanced and modern designs and technical facilities, meeting the requirements of fire prevention and fighting, environmental sanitation, security, safety and convenience for all subjects involved in business activities within the center.

2.3. Conducting multifunctional operations, with both goods trading and service provision, covering: the area for wholesale and retail shops; restaurants and hotels; the area for goods display; the area for entertainment activities, offices for lease, meeting halls and seminar rooms for organization of conferences, symposiums, transactions and conclusion of commercial contracts between domestic and foreign parties; the area for financial, banking, insurance, post and telecommunication, investment and tourist consultancy or brokerage activities.

3. Grade-III trade center:

3.1. Having a business space of 10,000 m² or more and car parks suitable to its business scale.

3.2. Having solid architectural works with modern designs and technical facilities, meeting the requirements of fire prevention and fighting, environmental sanitation, security, safety and convenience for all subjects involved in business activities within the center.

3.3. Conducting multifunctional operations, with both goods trading and service provision, covering: the area for wholesale and retail shops; the area for goods display; the area for catering and entertainment activities, offices for lease, meeting halls for organization of conferences, symposiums, transactions and conclusion of commercial contracts between domestic and foreign parties; the area for investment and tourist consultancy or brokerage activities.

Article 5.- Grading, names and signboards of department stores and trade centers

1. Traders doing business with department stores or trade centers shall themselves grade their department stores or trade centers on the basis of the criteria prescribed in Articles 3 and 4 of this Regulation under guidance and examination by Trade Services of the provinces or centrally-run cities (hereinafter called provincial/municipal Trade Services for short).

2. Only those commercial business establishments that fully meet the criteria prescribed in Article 3 (for department stores) or Article 4 (for trade centers) of this Regulation may be named department stores or trade centers.

Commercial business establishments that fail to fully meet the criteria prescribed in this Regulation are strictly prohibited to name themselves department stores or trade centers or bear such foreign names or signboards as Supermarket, Hypermarket, Big Mart, Big Store, Shopping Center, Trade Center or Plaza, etc.

3. Signboards of department stores or trade centers shall be inscribed according to the following provisions:

3.1. They must be inscribed in Vietnamese language as "SIEU THI" or "TRUNG TAM THUONG MAI" before their trade names or the names called by traders themselves and before words indicating place names or characteristics of such department stores or trade centers (for example: SIEU THI (department store) A, SIEU THI SACH (Book Mart) B, SIEU THI MAY TINH (Computer Mart) C; TRUNG TAM THUONG MAI (Trade Center) D, etc.)

3.2. If they are inscribed in foreign languages, the foreign-language letters' size must be smaller than the Vietnamese-language letters' size and the foreign name must be put under or after the Vietnamese name.

3.3. The names of traders doing business with department stores or trade centers, as well as the addresses, telephone numbers and grades of such department stores or trade centers must be clearly inscribed.

Article 6.- Construction of department stores and trade centers

1. Investors building, overhauling, improving or upgrading department stores or trade centers must formulate projects according to current regulations on investment and construction management. The locations for construction of department stores or trade centers must be in line with commercial network development plannings of localities.

2. When formulating projects for the construction of department stores or trade centers, investors must base themselves on the basic criteria for grading of department stores or trade centers prescribed in this Regulation so as to determine investment scale suitable to each grade of department store or trade center.

Article 7.- Goods and services traded in department stores and trade centers

1. Goods and services traded in department stores and trade centers must strictly comply with law provisions and meet the following specific requirements:

1.1. Having their own commercial names or bearing the commercial names of department stores or trade centers (if they have no commercial names, they must have their own names) and having their origins clearly inscribed according to the provisions of law.

1.2. Having numeral codes or barcodes, for those goods for which numeral codes or barcodes may be registered, in order facilitate the management of department stores or trade centers and the supervision by customers.

1.3. For goods being food, they must ensure the hygiene and safety criteria and have their use durations clearly inscribed on their packings. For fresh or unpacked preliminarily- processed agricultural products or food, they must be sorted and classified and have their origins, quality as well as use durations clearly inscribed at goods stands or counters.

1.4. All kinds of goods and services traded in department stores or trade centers must have their prices clearly inscribed in the goods labels or packings or posted up at goods stands or counters or service-providing places.

1.5. Goods under warranty must have their warranty durations and locations clearly inscribed.

1.6. Goods must be supplied stably and regularly through goods orders or contracts with producers and business people.

2. The following goods and services must not be traded in department stores or trade centers:

2.1. Goods and services on the list of goods and services banned from business under law provisions; smuggled goods, fake goods, goods of unclear origin, goods with expired use durations and goods not up to quality standards as prescribed by law (such as degraded goods, inferior quality goods, contaminated goods and diseased animals or plants, etc.).

2.2. Goods that fail to comply with the regulations on goods labeling, import tax stamps or special consumption tax stamps.

2.3. Goods that contain radioactive substances or equipment emitting ionized radiation in excess of the permitted level as prescribed.

2.4. Explosives of all kinds; inflammable and fire- and-explosion prone liquids and gases (such as petroleum, gas, compressed gas, etc.)

2.5. Assorted veterinary and plant protection drugs on the list of those subject to restricted business under law provisions.

2.6. Goods containing toxic chemicals on the list of those subject to restricted business under law provisions.

Chapter III

MANAGEMENT OF OPERATIONS OF DEPARTMENT STORES AND TRADE CENTERS

Article 8.- Responsibilities of traders doing business with department stores or trade centers

1. Organizations and/or individuals doing business with department stores or trade centers must be enterprises having commercial business operation registration according to law provisions. A department store or trade center may be an independent enterprise or dependent unit of an enterprise that has commercial business operation registration.

2. Traders doing business with department stores or trade centers must organize, manage, administer and take responsibility before law for all operations of such department stores or trade centers; and must regularly or irregularly report on the situation of operations of department stores or trade centers at the request of, and under guidance by, the State commercial management agency.

3. Department stores or trade centers must have their operation rules. Such a rule must cover the following principal contents:

3.1. The powers and responsibilities of the department stores' or trade centers' officers and employees towards customers.

3.2. The rights and obligations of traders joining in business at department stores or trade centers.

3.3. The goods and services traded in department stores or trade centers.

3.4. The rights and obligations of customers making transactions, purchasing at or visiting department stores or trade centers.

3.5. The maintenance of order and safety, fire and explosion prevention and fighting and assurance of environmental sanitation in department stores or trade centers.

3.6. The handling of violations and settlement of disputes in department stores or trade centers.

4. The internal rules of department stores or trade centers shall be formulated by traders doing business with such department stores or trade centers under the guidance and approval by the provincial/municipal Trade Services. A summary of those rules must be posted up clearly at places easily seen by people for observance.

Article 9.- Responsibility of the provincial/municipal Trade Services

Provincial/municipal Trade Services must coordinate with the concerned agencies in assisting the provincial/municipal People's Committees in performing the function of State management over department stores and trade centers in their respective provinces or cities, including the following jobs:

1. Elaborating plannings and plans for development of department stores and trade centers in accordance with the commercial and socio-economic development plannings and plans of the localities, and guiding the implementation thereof.

2. Guiding and inspecting traders doing business with department stores or trade centers in observing the criteria for, and grading department stores and trade centers.

3. Guiding traders doing business with department stores or trade centers to work out and observe internal rules of such department stores or trade centers; approving internal rules of department stores and trade centers.

4. Managing business operations of department stores and trade centers according to this Regulation and law provisions.

5. Formulating and guiding the observance of economic-technical norms and professional criteria in business operations of department stores and trade centers.

6. Directing, guiding, organizing professional training and fostering in business administration of department stores and trade centers.

7. Regularly or irregularly inspecting business operations of department stores and trade centers and handling violations according to law provisions.

8. Regularly or irregularly reporting at the request of the Trade Ministry on the situation of development, organization, management and business operations of department stores and trade centers in localities.

Chapter IV

HANDLING OF VIOLATIONS AND ORGANIZATION OF IMPLEMENTATION

Article 10.- Handling of violations

As from the effective date of this Regulation, organizations and individuals doing business with department stores or trade centers that commit the following violations shall be handled according to law provisions:

1. Doing business with department stores or trade centers without being enterprises and registering commercial business operations according to the provisions of Article 8 of this Regulation.

2. The commercial business establishments fail to fully meet the criteria for department stores or trade centers prescribed in this Regulation but still name themselves department stores or trade centers or place signboards with those names.

3. Inscribing the signboards of department stores or trade centers at variance with the provisions of Article 5 of this Regulation.

4. Violating the provisions on goods and services traded in department stores or trade centers.

5. Having no internal rules of department stores or trade centers or setting rules in contravention of the provisions of Article 8 of this Regulation.

6. Committing other violations as prescribed in this Regulation or under relevant law provisions.

Article 11.- Organization of implementation

The provincial/municipal Trade Services shall have to concretely guide and organize the implementation of this Regulation; in the course of implementation, if any difficulty or problem arises, they should promptly report it to the Trade Ministry and the provincial/municipal People's Committees for consideration and settlement.