Decision No. 559/QD-TTg dated May 31, 2004 of the Prime Minister approving the Program on development of marketplaces till 2010

DECISION

APPROVING THE PROGRAM ON DEVELOPMENT OF MARKETPLACES TILL 2010

THE PRIME MINISTER

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

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

At the proposal of the Minister of Trade,

DECIDES:

Article 1. To approve the program on development of marketplaces till 2010 with the following principal contents:

I. PROGRAMS OBJECTIVES

1. Overall objectives:

To develop and efficiently exploit the networks of marketplaces with diversified types and grades; and at the same time to renovate the organization and management of marketplaces in all localities, especially in rural and mountainous areas; to contribute to expanding the market, stepping up goods circulation and service provision; to consume more and more commodity farm produce and provide more and more sufficiently supplies and consumer goods, contributing to developing production and improving the life of people, especially those in rural and mountainous areas.

2. Specific objectives:

a) Stage 1 (2004-2005):

- To accomplish the work of marketplace development planning nationwide, on that basis, to draw up the plan for implementation in each year till 2010.

- 40% of marketplace-managing officials in rural and mountainous areas and 60% of marketplace-managing officials in urban areas shall be professionally trained in marketplace-managing and exploitation with appropriate training degrees and forms.

- To form a number of pivotal marketplaces for agricultural, forestry, aquatic and marine products (referred collectively to as farm produce marketplaces) and class-I marketplaces according to plannings at key economic-trade locations of regions, provinces or centrally-run cities (referred collectively to as provinces) after new models; to complete Dak Lak coffee marketplace, stage I of Can Tho paddy marketplace, and Nghe An farm-produce marketplace by the end of 2005.

- In urban areas: To associate marketplace plannings with plannings on development of department stores, wholesale centers, retail centers and trade centers; by the end of 2005, to basically accomplish the repair and upgrading of large central marketplaces (pivotal places for goods circulation) and completely remove pivotal farm-produce marketplaces from inner cities to suburban areas; marketplaces shall be available in all new urban quarters; to eliminate all temporary marketplaces which cause disorder and environmental pollution and effect traffic safety; to step by step overcome the peddlery on streets, pavements, roadsides, roadbeds in order to ensure urban and commercial civilization.

- In rural areas: By the end of 2005, 25% of the marketplaces operating under plannings shall be upgraded or renovated; to build more marketplaces in new population clusters and communes where marketplaces are not available through the demands thereof arise, bring into play the role of marketplaces in economic-trade service clusters in townships and towns.

- In mountainous areas: To accomplish the construction of marketplaces in commune cluster centers under socio-economic development programs (according to the implementation plan of each program); to complete the construction of 2% of the border marketplaces, border-gate marketplaces and marketplaces in border-gate economic zones under plannings; to maintain fairs to better meet the exchange and trading demands as well as requirements on expansion of business places, contributing to promoting the formation of commodity-production elements and meet the peoples daily-life needs.

b) State 2 (2006-2010)

- Marketplaces in areas (including pivotal farm-produce marketplaces, class-I marketplaces in key locations, border marketplaces, border-gate marketplaces and marketplaces in border-gate economic zones) under plannings shall be renovated, upgraded or built along the direction of solidification and step-by-step modernization; temporary marketplaces, marketplaces made of thatch, bamboo or palm leaves shall basically no longer exist.

- Marketplaces under plannings shall have appropriate managerial apparatuses, mainly after the models of enterprises and cooperatives dealing in and managing marketplaces.

- To basically complete professional training and fostering for the contingent of marketplace-managing officials (under plannings) with appropriate training degrees and forms.

- To put marketplaces operation into order and discipline, actively contributing to socio-economic organization and management, boosting goods sale for the convenience of consumers and raising the effectiveness and efficiency of State management over marketplaces.

II. PROGRAMS SCOPE

1. The program shall be carried out nationwide; to prioritize investment support for the program implementation in areas and localities where farm-produce commodities are massively produced and concentrated as well as in border areas and communes meeting with exceptional difficulties in mountainous, island, deep-lying, remote and ethnic minority areas (where exist urgent demands for marketplaces).

2. The program implementation duration is from 2004 to 2010, divided into two stages:

- Stage 1: From 2004 to 2005.

- Stage 2: From 2006 to 2010.

III. PROGRAMS PRINCIPAL CONTENTS

The programs principal contents are to formulate and execute the following projects:

1. Planning on the marketplaces systems in the provinces and nationwide.

2. Formulating and promulgating technical standards and model designs applicable to various types and grades of marketplace nationwide.

3. Formulating and executing projects on pivotal farm-produce marketplaces (at regional and provincial levels).

4. Formulating and executing projects on development of marketplace networks in mountainous, island and ethnic minority areas (excluding pivotal farm-produce marketplaces).

5. Formulating and executing projects on development of marketplace networks in urban and delta areas (excluding pivotal farm-produce marketplaces).

IV. SOLUTIONS

1. Planning solutions:

a) For the provinces which had formulated marketplace plannings before the issuance of the Prime Ministers Decision No. 311/QD-TTg dated March 20, 2003 approving the scheme on continued organization of domestic market, concentrating efforts on rural trade development till 2010 and the Governments Decree No. 02/2003/ND-CP dated January 14, 2003 on development and management of marketplaces: It is necessary to formulate projects on amending, supplementing and perfecting plannings on development of marketplace systems in their respective localities to suit the new undertakings and policies on trade in general and on marketplace development and management in particular, and suit local socio-economic development.

b) For the provinces which have not yet drawn up marketplace plannings: On the basis of local socio-economic development plannings and plans in general and trade development plannings in particular, it is necessary to investigate and evaluate the actual situation of existing marketplaces; based on such basic criteria as population density, daily-life practices, consumers tastes, goods supply sources, demands for circulation, exchange and trading inside and outside localities, to formulate plannings on development of the marketplace networks in conformity with the States undertakings and policies as well as local characteristics and practical situation, on that basis, to draw up plans on building, renovating, upgrading and relocating marketplaces.

c) In plannings on the development of marketplace systems of the provinces, it is necessary to determine lists of projects on marketplaces where investment is prioritized, with specific steps taken for the 2004-2005 period, the 2006-2010 period and each year.

d) For marketplaces which are formed spontaneously not under plannings, and makeshift marketplaces: It is necessary to consider and evaluate them one by one; to include in the plannings, and draw up plans on upgrading, renovating or building, only those marketplaces which are operating efficiently, meeting the purchase-sale demands of local people.

e) On the basis of the national socio-economic development strategy, plannings on trade development and plannings on development of the marketplace networks of the provinces, to elaborate the overall planning on development of the marketplace networks of the trade service nationwide.

2. Solutions to mechanisms and policies:

a) On investment:

- Marketplace construction investment activities shall enjoy the preferential policies under Law No. 03/1998/QH10 dated May 20, 1998 on Domestic Investment Promotion (amended), the Governments Decree No. 51/1999/ND-CP dated July 8, 1999 detailing the implementation of the Law on Domestic Investment Promotion (amended), and Decree No. 35/2002/ND-CP dated March 29, 2002 amending and supplementing Lists A, B and C promulgated together with the Governments Decree No. 51/1999/ND-CP dated July 8, 1999. Particularly, the enterprise income tax preferences shall comply with Enterprise Income Tax Law No. 09/2003/QH11 dated June 17, 2003 and the Governments Decree No. 164/2003/ND-CP dated December 22, 2003 detailing the implementation of the Enterprise Income Tax Law.

- The sources of State budget investment capital in support of marketplace construction shall comply with the Governments Decree No 02/2003/ND-CP dated January 14, 2003 on development and management of marketplaces.

- For mountainous and border marketplaces, the State budget capital shall support the marketplace construction investment under this program along the direction of integrating it into capital sources of mountainous socio-economic development programs which have been being carried out such as Program 135, program on hunger elimination, poverty alleviation and employment, Particularly for national and international border-gate marketplaces and marketplaces in border-gate economic zones, the preferential policies for border-gate economic zones under the Prime Ministers Decision No. 53/2001/QD-TTg dated April 19, 2001 on policies towards border-gate economic zones shall apply.

- To set aside an appropriate percentage from marketplace revenues (excluding taxes) for reinvestment, first of all in repairing and upgrading marketplaces which have been seriously degraded or which fail to satisfy operation conditions.

b) On finance and credit:

- Marketplace management apparatuses, organized after the models of management boards or enterprises, shall observe the following principles: assigning financial autonomy to units for self-apportioning, accounting of revenues and expenditures and financial self-responsibility, associated with operation efficiency and managed under laws.

- To enhance the management of tax collection from households doing business outside marketplaces, combating under-collection and ensuring justice between among business households inside and outside marketplaces.

- The provincial Tax Departments, when assigning tax collection targets to marketplaces, should survey and evaluate carefully the practical situation and consul the Tax Consultancy Council in each marketplace in order to set collection rates suitable to sale turnovers of business households.

- Traders doing business in marketplaces subject to the regulation of Decree No. 20/1998/ND-CP dated March 31, 1998 and Decree No. 02/2002/ND-CP dated January 4, 2002 on policies for development of trade in mountainous, island and ethnic minority areas shall be entitled to the preferences prescribed in the above-said decrees. Particularly, enterprise income tax preferences shall comply with Enterprise Income Tax Law No. 09/2003/QH11 dated June 17, 2003 and the Governments Decree No. 164/2003/ND-CP dated December 22, 2003 detailing the implementation of the Enterprise Income Tax Law.

c) On land:

- In the course of elaborating master plannings or detailed plannings for development of new economic zones or population quarters, the provinces must have land funds for construction of local marketplaces.

- To arrange marketplace locations and acreage suitable to plannings, meeting the immediate demands for marketplace holding and possibility of expanding marketplace sizes in the up-coming period.

3. Solutions to mobilization and exploitation of different resources for marketplace construction investment:

a) To determine and publicize lists of marketplaces which are invested and built by the State with (central and local) budget support, enclosed with support levels; marketplaces which are built with capital sources from enterprises and individuals, and capital mobilization forms and levels.

b) To socialize the construction, renovation and upgrading of local marketplaces under the guideline of joint efforts of the State and people on the basis of voluntariness and mutual benefit in the following principal forms:

- Production/business subjects wishing to do business in marketplaces shall contribute investment capital for construction of marketplaces or marketplace-related infrastructures and participate in marketplace management.

- To mobilize enterprises in localities to deduct part of their marketing or advertisement funding for marketplace construction investment; in return therefore, they shall be given certain spaces in the marketplaces for display of their products.

- For large marketplaces, joint-ventures with domestic and foreign partners to create capital sources may be set up.

4. Solutions to training and fostering of marketplace-managing officials:

a) In order to put an end to the situation that most marketplace-managing officials on State payrolls are transferred from other branches, who have no professional qualifications and manage marketplaces mainly with their experience, it is necessary to organize courses on marketplace management training and fostering for incumbent officials and training of officials specialized in marketplace management work for localities.

b) Training and fostering programs shall be divided into two types with contents suitable to the following two groups of subjects:

- Group 1: Officials in charge of State management over marketplaces of the provincial/municipal Trade Services, the Industry-Commerce Sections or the Finance-Planning-Trade Sections in rural districts, provincial towns or cities; the presidents of the Peoples Committees of communes, wards and townships.

- Group 2: Officials of marketplaces managing boards, marketplace business enterprises and cooperatives, marketplace-managing teams and personnel directly engaged in marketplace management work.

c) The provinces shall coordinate with schools under the Ministry of Trade in organizing professional training and fostering courses for the contingent of officials, public servants, employees and personnel managing marketplaces. Besides, the provinces may also organize by themselves appropriate refresher courses in their localities.

V. CAPITAL SOURCES AND USE THEREOF

1. Capital sources for program implementation:

Capital sources for the program implementation shall be mobilized from the States development investment capital (including capital from the central and local budgets and non-refundable aid sources), credit loan capital, capital of production/business subjects, capital contributed by people, and other lawful capital sources. Of which, capital of enterprises, business households, organizations, individuals, population communities, shall constitute main capital sources for implementation of the program on development of marketplaces till 2010.

a) The State budget:

- The State budget shall be used for execution of projects on plannings on development of the marketplace networks nationwide and in each province.

- The State budget shall support the construction of technical infrastructures for the following projects:

+ Building pivotal farm-produce marketplaces:

The provinces shall mainly use local budgets and mobilize other capital sources, the central budget shall provide partial support for the construction of technical infrastructures of regional-level and provincial-level pivotal farm-produce marketplaces.

+ Building marketplaces in commune clusters in highland, deep-lying, remote and island areas under the States programs on socio-economic development, hunger elimination and poverty alleviation, and sedentarization:

As the State budget capital source for the construction of marketplaces in commune cluster centers (under Program 135) and marketplaces in communes on the list of those meeting with exceptional difficulties (the program on hunger elimination, poverty alleviation and employment) is still limited, the central budget shall provide additional support (specific support levels shall be considered at the proposals of the provincial Peoples Committees) for marketplaces whose construction has not yet been completed due to investment capital shortage in localities where marketplaces are required to meet production/business and peoples daily-life demands.

Among the marketplaces under Program 135, investment support priority shall be given to border marketplaces (under plannings) which are operating but neither solid nor semi-solid ones.

Investment capital for the construction of national and international border-gate marketplaces and marketplaces in border-gate economic zones shall comply with the Prime Ministers Decision No. 53/2001/QD-TTg dated April 19, 2001 on policies towards border-gate economic zones.

+ Class-I marketplaces under plannings in key economic-trade locations of provinces and cities, acting as goods exchange centers in service of consumption demands of big cities and towns.

b) Credit capital:

Investors building projects on development of the marketplace networks shall borrow capital from credit institutions according to current regulations.

c) Capital mobilized from production/business subjects and people:

Investors building projects on development of the marketplace networks may mobilize capital from enterprises, organizations, individuals, business households and population communities, and other lawful capital sources for the construction of market stores, stalls, counters, service works and other items of marketplaces.

2. Management and use of the State budget capital:

The ministries and the Peoples Committees of the provinces, which are assigned the State budget capital for implementation of the programs projects shall to manage and use such capital source for the right purposes and the right objects and strictly according to the States current regulations. The allocation of the central budget capital source for implementation of the programs projects in localities under annual plans must not be averaged out for every province but prioritized for the development of pivotal farm-produce marketplaces in localities with developed commodity economy, as well as border marketplaces and marketplaces in mountainous, island and ethnic minority areas under plannings approved by competent authorities.

VI. ORGANIZATION OF IMPLEMENTATION

1. Responsibilities of ministries and branches:

a) The Ministry of Trade, which directs and organizes the implementation of the program nationwide, shall have the responsibilities:

- To elaborate the master plan and annual plans for the program implementation; direct and guide the provincial Peoples Committees in elaborating plans for implementation of the program.

- To assume the prime responsibility for, 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, the concerned ministries of branches, as well as the provincial Peoples Committees in, formulating a project on planning of the marketplace networks nationwide, to be implemented from 2004 to 2005.

- To assume the prime responsibility for, and coordinate with the Ministry of Construction in, promulgating technical standards and model designs for marketplace types and grades, to be implemented in 2004.

- To guide and direct the provinces in formulating projects on plannings and development of the marketplace networks in their respective localities; to coordinate with the Peoples Committees of Can Tho city, and Dak Lak and Nghe An provinces, as well as concerned ministries and branches in experimentally building 3 regional-level pivotal farm-produce marketplaces after the new models: Can Tho paddy marketplace, to be implemented from 2004 to 2010, stage I (2004-2005): Dak Lak coffee marketplace, to be implemented in 2004-2005; and Nghe An farm-produce marketplace, to be implemented from 2004 to 2010, stage I (2004-2005); then review and perfect the models for dissemination and wide application.

- To direct localities in implementing the program according to plans; to examine and evaluate the progress of implementation of the program in localities; biannually and annually, to synthesize results of the program implementation and report thereon to the Prime Minister.

- To authorize the Minister of Trade to set up the Steering Committee for the program on development of marketplaces till 2010 (called the Steering Committee for short), managed by the Ministry of Trade, which is composed of a Vice Minister of Trade as its head and representatives of leader-ship of the concerned ministries and branches; to elaborate the Committees operation contents and regulations and the inter-branch coordination mechanism for the program implementation; operation funding of the Steering Committee shall be apportioned by the Ministry of Trade itself.

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

- To coordinate with the Ministry of Trade, the concerned ministries and branches as well as the provincial Peoples Committees in elaborating the planning on development of the marketplace networks nationwide.

- Annually, to elaborate and submit to the Government for approval plans on investment in the construction of marketplaces with the States investment or investment capital support.

- To consider and evaluate the program implementation projects which fall under the law prescribed functions, tasks and powers of the Ministry of Planning and Investment.

- To assume the prime responsibility for, and coordinate with the Ministry of Finance, Vietnam State Bank, the Ministry of Trade and relevant agencies in, finding solutions to balance capital sources, allocate them under annual plans and submit them to the Government for decision for investment in implementation of the programs projects (financed with the State budget).

c) The Ministry of Natural Resources and Environment shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment, the Ministry of Construction and the Ministry of Trade in, guiding localities to use land for the program implementation.

d) The Ministry of Transport, the Ministry of Construction and the Ministry of Post and Telematics shall assist the provinces in working out solutions on construction of infrastructures such as traffic roads, post offices, communication, to create favorable conditions for the construction of marketplaces and their operation, protect scenic places and the environment.

2. Responsibilities of the provincial Peoples Committees:

a) To elaborate annual plans on implementation of the program on development of marketplaces to submit them to the Government and report them to the Steering Committee. Such plans are included in the provincial socio-economic development plans (inscribed in separate items) with funding estimates for the program implementation, which specially propose capital amounts supported by the central budget.

b) To assume the prime responsibility for, and coordinate with the Ministry of Trade, the Ministry of Planning and Investment as well as the concerned ministries and branches in, formulating and executing the following projects: planning on development of the marketplace networks in the provinces; building regional-level and provincial-level pivotal farm-produce and food marketplaces; developing the marketplace networks in mountainous, island and ethnic minority areas; and developing the marketplace networks in urban and delta rural areas.

The above-said projects shall be carried out from 2004 to 2010. The time of completion of each project shall comply with the specific objectives set by the program.

c) To elaborate and promulgate mechanisms, policies and solutions in order to mobilize and exploit local resources, especially resources of production/business subjects and local people for the performance of assigned tasks and projects under the program.

d) In the course of construction of market-places, to assign grassroots administrations to perform jobs which local people are able to assume in order to contribute to creating jobs, increasing incomes for a section of population, and raising the peoples sense of responsibility in the future management and exploitation of marketplaces.

e) To direct, examine and inspect the observance of undertakings and policies on development and management of marketplaces in the provinces, the execution of the programs projects, especially in the domain of capital construction investment (execution of projects on renovating, upgrading, relocating and building marketplaces in localities) strictly according to the plans and regulations, ensuring quality and preventing losses and negative phenomena.

f) The provincial Peoples Committees shall each set up a Managing Board for the marketplace development program (called the Managing Board for short), which is composed of a vice-president of the provincial Peoples Committee as its head, the director of the provincial Trade Service as its deputy-head and standing member; the operation funding of the Managing Boards shall be apportioned by provincial Peoples Committees themselves. The Managing Boards shall implement the program strictly according to their functions, tasks, powers and responsibilities defined by the presidents of the provincial Peoples Committees; be subject to the direction and guidance by the Steering Committee, assist the provincial Peoples Committees in efficiently executing the projects assigned to them under the program.

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

Article 3. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the Peoples Committees of the provinces and centrally-run cities shall have to implement this Decision.