Decision No. 6184/QD-BCT dated October 19, 2012 of the Ministry of Industry and Trade approval of “development planning of supermarket and commercial center network nation-wide to 2020 and with vision to 2030"

DECISION

APPROVAL OF “DEVELOPMENT PLANNING OF SUPERMARKET AND COMMERCIAL CENTER NETWORK NATION-WIDE TO 2020 AND WITH VISION TO 2030"

MINISTER OF INDUSTRY AND TRADE

Pursuant to the Decree No. 189/2007/ND-CP dated December 27, 2007 of the Government defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade and Decree No. 44/2011/ND-CP dated June 14, 2011 of the Government amending and supplementing Article 3 of Decree No.189/2007/ND-CP;

Pursuant to Decree No. 92/2006/ND-CP of September 7, 2006, and Decree No. 04/2008/ND-CP of the Government dated 11 December 01, 2008 of the Government amending and supplementing a number of articles of Decree No. 92/2006/ND-CP on the formulation, approval and management of the master plan of socio-economic development;

Pursuant to Decision No. 27/2007/QD-TTg dated February 15, 2007 of the Prime Minister approving the scheme of domestic commercial development to 2010 with orientation to 2020;

At the request of the Director of the domestic market Department,

DECIDES

Article 1.Approving “Development planning of supermarket and commercial center network nation-wide to 2020 with vision to 2030", with the following principal contents:

I. DEVELOPMENT POINT OF VIEW

1.Fast growing network of supermarkets and commercial centers (including shopping centers) linked to the process of modernization of the distribution system, implementing targets that by 2020 the country shall become industrialized countries basically toward modernization.

2.Strongly developingsupermarket business enterprises and commercial center of all economic sectors; implementing the distribution services market opening commitments associated with the rapid development of supermarket business enterprises, commercial centers with market mechanism, ensuring fair and equal competition environment.

3.Developing a network of supermarkets, commercial centers appropriate with regional planning, urban and rural planning; density and size of supermarkets and commercial centers shall be determined in accordance with the characteristics and conditions of socio-economic development in each area and region nationwide; under the uniform standards and regulations, reaching the advanced level, attaching special importance to environmental protection and minimizing the risks of harming the environment in the business of supermarkets and commercial centers.

II. DEVELOPMENT OBJECTIVES

1. General objectives:

Building a network of supermarkets and commercial centers nationwide which shall rapidly and modernly develop based on a logical structure of systems and distribution channels with the participation of all economic sectors and types of organizations, operating in a competitive environment with macroeconomic management and regulation of the State. Striving to 2020 that the network of supermarkets and commercial centers in our country shall become major retail channels of goods in the domestic market; the goods circulation speed is accelerated; the price and quality of goods circulating through the system steadily; the retail services provided are increasingly diversified and of quality and actively contribute to the implementation of the task of protecting and improving the environment; development level of retail market shall be improved significantly thus contribute to improving urban civilization.

2. Specific target:

By 2020, 100% of the systematic supermarket and commercial center business enterprises shall ensure stable supply of products under the supply contract with the production facilities or supply of distribution service;

Striving by 2015 that about 40 - 50% of the agricultural produce and fresh maritime products and 70 - 80% of handicraft products for consumption needs of the population shall be produced to meet the standards and specifications and quality of products sold through a network of supermarkets and commercial centers; By 2020, the corresponding rate shall be about 70-80% and 100%.

100% of the goods sold through a network of supermarkets and commercial centers are labeled and regularly controlled quality and food safety and other regulations relating to the goods;

The growth rate of total retail sales through a network of supermarkets and commercial centers shall be at an average rate of 26-27% / year by 2015 and 29-30% / year for the period 2016 - 2020.

The proportion of retail through a network ofsupermarkets and commercial centers shall account for about 27 - 30% of total retail sales of social goods by 2015. By 2020, this proportion shall account for 43 - 45% of total retail sales of social goods.

III. DEVELOPMENT ORIENTATION

1. Development orientation of types of supermarkets and commercial centers

Developing types of supermarket as defined in Regulation on supermarkets and commercial centers issued together with Decision No. 1371/2004/QD-BTM dated September 24, 2004 (hereinafter referred to as the current Regulation).

Building supermarkets and commercial centers to gradually replace the traditional retail types in harmony with the planning in which focusing primarily in large cities.

2. Orientation for development of supermarket and commercial center network

Building a network of supermarkets and commercial centers associated with the urban space with the scale from the special grade to grade V (under Decree No. 42/2009/ND-CP dated May 7, 2009 of the Government on urban classification).

In special urban centers and urban centers of grade 1, a network of supermarkets and commercial centers with the scale from class I to III shall be built simultaneously developing a network of supermarkets and commercial centers in the direction of integration with various typesof wholesale and retailing and other service providers to form some concentrated commercial parks.

At grade II urban centers, supermarkets of class I to III and commercial centers from class II and III shall be built.

At grade III urban centers, supermarkets of grade II to III and commercial centers of class III shall be built.

At grade IV and V urban centers, general supermarkets of class III shall be primarily built.

3. Orientation of economic sectors to invest in the building of supermarkets and commercial centers.

The economic sectors which invest in building supermarkets and commercial centers actively shall participate in business development at various stages and sections of the process of circulation of goods from production to retail sales through a network of supermarkets and commercial centers. Encouraging supermarkets and commercial centers businesses enterprises to develop long-term and stable links with the industrial facilities of consumer goods production, agricultural products processing facilities, services and trading cooperatives with the agricultural, forestry and aquaculture farms and facilities to develop a stable source of goods, reduce travel costs and commodity prices to improve business efficiency.

4. Orientation of management of supermarkets and commercial centers

The State shall manage the business operations of supermarkets and commercial centers on the basis of legal regulations, renovating and completing the management and coordination mechanism between state management agencies in the inspection and monitoring of business activities of supermarkets and commercial centers. Adjusting regulations for the type of commercial center and supplementing regulations on development of types of shopping center

IV. DEVELOPMENT PLANNING

1. Criteria for determination of planning

Planning supermarkets, commercial centers 2020 was determined according to the following main criteria:

a) Criteria for determining the types of supermarket and commercial center:

Supermarkets are defined in accordance with current Regulation and supplemented by a number of criteria such as: items sold through supermarkets with rich and diversified types and structures, clearly labeled particularly foodstuff, beverages, detergents, cleaners, home appliances and other items for other essential needs of the consumers; supermarket sales activities run and managed by an enterprise.

Commercial centers are defined under the current Regulation and supplemented by a number of criteria such as: items sold through the commercial centers are the consumer goods with rich and diversified types and structures and high quality and value; in commercial centers there are many goods retail business enterprises, including supermarket business enterprises and enterprises specializing in business of branded goods.

Shopping center is a type of commercial center, with a large area with many shops, services facilities planned under each row or continuous cluster including wholesale and retail activities; different types of traditional and modern distribution; goods sold through the shopping centers are the variety of consumer goods with diversified types and quality levels to meet the consumption needs of all subjects with different income level and tastes.

b) Criteria for determining scale of supermarkets and commercial centers

Scale of supermarkets is classified into three classes depending on the business area as specified in the current Regulation.

Scale commercial centers are classified into three classes. The business area is corresponding to each category as provided for supermarkets in the current Regulation.

Scale of shopping centers is divided into: special class, class I, class II and class III. The land area corresponding to each class from I to III as prescribed for the commercial center at the current Regulation. For special class shopping centers with an area from​​150 to 200 ha and are built to become international and regional shopping centers.

Supplementing criteria for parking lot corresponding to classes of supermarket and commercial center: the average area of a parking lot and the scale of parking lot are corresponding to the scale of supermarkets and commercial centers specified under the Standards of Vietnam building QCXDVN 01: 2008/BXD of the Ministry of Construction issued under the Decision No. 04/2008/QD-BXD dated April 3, 2008 (in Section 2.5.1 of chapter II and Section 4.3.3- chapter IV).

c) Criteria for determining location for planning of supermarkets and commercial centers:

Supermarkets and commercial centers with the scale of class III shall be planned in the basic area, corresponding to the "living unit" explained in QCXDVN 01: 2008/BXD of the Ministry of Construction.

For shopping centers shall be planned in the suburbs and on outskirts of urban centers of grade III or higher.

d) Criteria for determining the distance required between the supermarkets and commercial centers:

Supermarkets and commercial centers serving in the basic area under QCXDVN 01: 2008/BXD of the Ministry of Construction need to ensure a service radius of no more than 500 m, particularly for areas with complex terrain, the service radius must not exceed 1.0 km.

The distance between the supermarkets and commercial centers of the same class in urban centers or metropolitan areas must be from 20 km or more for supermarkets and commercial centers of class I (corresponding to the service radius of 10 km); from 6 km or more for supermarket and commercial center of class II (corresponding to the service radius of 3 km); from 1 km or more for supermarkets and commercial centers of class III (corresponding to the service radius of 0.5 km).

Particularly, the shopping centers are planned in the suburbs and on outskirts of urban centers of grade III or higher, but the distance to the center of the urban center shall not exceed 25 km for shopping center of special class, not exceed 20 km for the shopping center of class I,not exceed 15 km for the shopping center of class II and not exceed 15 km for the shopping center of class III

2. Planning of network of supermarket and commercial center.

a)Renovating and upgrading the existing supermarkets and commercial centers.

Total supermarkets and commercial centers which need upgrading shall be 333 equal to 45.4% of the total available.

Totalsupermarkets and commercial centers which need relocation shall be 21 equal to 2.9% of the total available.

b) New planning of supermarkets and commercial centers

Based on the promising growth of the domestic retail market and other development conditions, defining the planning in the nation-wide area as follows: from 1200 to 1300 supermarkets,additionally increasing 585-695 compared with 2011; 180 commercial centers, additionally increasing 82 compared with 2011 and 157 shopping centers under the planning criteria above mentioned.

Planning of supermarkets and commercial centers based on the grade in provinces by 2020 (attached Appendix I).

Planning the number of supermarkets and commercial centers projects with concentrated investment by 2015 in provinces having growth potential (attached Appendix II).

V. CONSTRUCTION INVESTMENT CAPITAL

Investment capital in the construction of supermarkets and commercial centers possessed by enterprises or raised from other capital sources at home and abroad.

VI. DEMAND ON LAND USE

Totaldemand on land use to build supermarkets and commercial centers by 2020 5751 to 6,183.1 ha, particularly:

-Demand on land use for supermarkets is from 2,526 to 2,958.1 haequal to 44-49% of the total demand on land use;

-Demand on land usefor commercial centers is 3,225 ha equal to 56-51% of the total demand on land use;

VII.GENERAL SOLUTIONOF ENVIRONMENTAL ISSUES

1. Technical solution

Studying and selecting plans of design and construction of supermarkets and commercial centers in accordance with the characteristics and scale of business operations, infrastructure conditions in the project area, the level of response to the requirements on environmental protection within and outside the project area.

Encouraging investors to apply the new and modern technologies in the collection and treatment of waste.

Studying, promulgating and applying technical standards for the system of collection and treatment of waste in accordance with the type of supermarket and commercial center as a basis for investors to immediately apply in the process of construction investment.

Management solution:

a) For state management agencies:

Raising assessment capacity of environmental impact of the investment licensing agencies, permit licensing of supermarkets and commercial centers.

Developing mechanism ofinspection and monitoring of investment projects and environmental impact assessment reports of investment projects in accordance with the Law on Environmental Protection.

Strengthening the role of the system of environmental protection organizations at the grassroots level of districts / wards / communes.

Regularly updating feedback information to finalize legal normative documents for economic and trading activities and environmental protection.

b) For enterprises:

The enterprises must appoint leaders to be take responsibility for environmental protection activities; establishing divisions and departments, officers in charge to advise the leaders of environmental management in their business activities; periodically inspecting the compliance with regulations on environmental protection in supermarkets and commercial centers.

Enterprises must develop plans to protect the environment annually. This plan should be widely disseminated in order to raise awareness for all staff and employees in the enterprises and review the annual performance.

Implementing work of environmental monitoring, periodically monitoring wastes causing environmental pollution due to operations of enterprises, making waste audits and applying measures to minimize waste.

Proactively making plans and schemes, preparing facilities and techniques for dealing with environmental problems and overcoming consequences of environmental problems.

Improving and replacing equipment, technology, packaging and product packing more friendly to the environment.

Implementing environmental managementby ISO 14000 standard.

c) For social organizations:

Enhancing the propagation and dissemination of the law onenvironmental protection for organizations and individuals.

Facilitating the organizations and people to participate in activities of environmental protection.

Building the movement of people and businesses and using products with environmentally friendly packaging.

VIII. PRINCIPAL SOLUTION AND POLICIES

Creating a favorable business environment for organizations, individuals AND enterprises of all economic sectors to invest in business development and management for the development of supermarkets and commercial centers in accordance with the approved plans.

Continuing institutionalization of Vietnam s commitments to the World Trade Organization on the opening of goods market and services distribution to ensure fair and equal competition between domestic and foreign enterprises engaged in business of supermarkets and commercial centers. On the basis ofcommitments for the market opening of distribution services, the State shall strengthen the control overforeigninvested enterprises on the items in the list of exclusion and considering the licensing of a second retail opening. At the same time, the State shall encourage foreign invested enterprises to invest in building supermarkets, commercial centers and shopping centers of class I as planned in areas far from urban centers.

Encouraging distributionenterprises and real estate enterprises including foreign direct invested enterprises to invest in the construction of supermarkets, commercial centers and shopping centers and provide retail space to distribution enterprises in the form of resale or lease on the basis of preferential policies for investment in accordance with the Decrees of the Government detailing and guiding the implementation of the Law on Investment.

Encouraging small and medium enterprises to invest in development of network of supermarkets and commercial centers under current preferential policies stipulated in Decree 56/2009/ND-CP of June 30, 2009 of the Government on State management, assistance and support for small and medium enterprise development.

Construction investment projects of supermarkets and commercial centers in urban areas of the provinces with per capita income lower than the national average shall be considered for application of policies to support investment by: Decree No. 61/2010/ND-CP dated April 06, 2010 on policies to encourage enterprises to invest in agriculture and rural development; Decision No. 23/QD-TTg dated January 06, 2010 approving the scheme "Development of rural trade for the period 2010 - 2015 and orientation to 2020".

The localities shall base on the approved land planning to determine land reserve for new construction or upgrading, expanding commercial centers and supermarkets on specific areas; promptly announcing and publicizing price range of land lease for each area to enable investors to choose and concretize mechanisms and policies of land to meet the adequate requirements on area,convenient for location for each type of scale of supermarkets and commercial centers.

Business training establishments of supermarkets and commercial centers for rural workers shall enjoy preferential policies by the Decision No. 1956/QD-TTg dated November 27, 2009 of the Prime Minister approving the scheme "Vocational training for rural workers by 2020." Encouraging vocational training establishments of the Ministry of Industry and Trade to expand training to improve the capacity of businessmen and distributors of goods, transfer knowledge and technology in modern goods distribution, step by step meet international standards of goods, packaging and customer services.

Enhancing the role of the Service of Trade and Industry in the assessment and licensing of investment projects to build supermarkets and commercial centers independently, or in the commercial complex, or urban centers under the planning in the provincial areas; organize professional training classes and strengthen inspection on food safety, goods quality, anti-counterfeiting, bad quality, fire prevention and fighting, ...

Article 2.Implementation organization

1. Responsibilities of ministries and sectors

1.1.The Ministry of Industry and Trade shall assume the prime responsibility and coordinate with the relevant ministries to direct and guide the provinces to implement this plan, focusing on the following main tasks:

a)Directing and guiding the provinces to review, revise, supplement or building new development planning of supermarket and commercial center in accordance with this Plan and related plans

b)Directing, guiding and inspecting provinces in the implementation of the planning, projects of development investment of supermarkets and commercial centers in the area.

c)Reviewing mechanisms, policies and laws related to the development and management of supermarkets and commercial centers to modify, supplement and issue under the authority or reach agreement with other ministries and agencies for submission to the competent authority for amendment and supplementation.

1.2.Ministry of Planning and Investment, Finance, Construction, Science and Technology, Natural Resources and Environment, State Bank, Agriculture and Rural Development and other relevant ministries and sectors by their functions, duties, powers to have responsibility for coordinating with the Ministry of Industry and Trade to implementation of solutions and policies in this plan.

2. Responsibilities of People s Committees of provinces:

Directing the Service of Trade and Industry in collaboration with the relevant agencies to implement some of the following key tasks:

a)For provinces which have already hadthe development planning of supermarket and commercial center network before the effect of this Decision shall review and, if it is not suitable for development planning of supermarket and commercial center network nation-wide, the adjustment of the planning must be conducted and submitted to the provincial People’s Committee for approval.

b)For provinces which have not had thedevelopment planning of supermarket and commercial center network, they should develop the planning urgently in accordance with the local socio-economic development planning and this planning.

c)In the process of implementation of development planning of supermarket and commercial center network nation-wide, the provinces should base on the orientation and planning as prescribed in this Decision and a list of the number of projects to be focused on investment to 2015 (attached Appendix II) to make list of number of investment projects focused on the next stage (with the priority order and implementation roadmap) suitable with the socio-economic development in provincial areas. The list of the number of projects of supermarkets and commercial centers to be focused on investment to 2015 (mentioned above) can be adjusted to suit the socio-economic development and the commercial development of each locality. However, before making decision on adjustment, theprovincialPeople s Committees should discuss and agree with the Ministry of Industry and Trade.

d)Advising the provincialPeople s Committees in developing, assessing and guiding the implementation of investment projects of supermarkets and commercial centers in the areas in accordance with the planning and plan approved by the People s Committees.

e)Formulating and submitting to the provincial People s Committee for the issuance of mechanism and policies (in accordance with the provisions of the law) and solutions to mobilize and exploit local resources (especially the resources of the business enterprises of all economic sectors) and other organizations and individuals to develop supermarkets and commercial centers in the area.

f)Annually, making report to the Ministry of Industry and Trade and the provincial People s Committees on and the results of implementation of this planning.

Article3. This Decision takes effect from the date of its signing.

Article 4.The Ministers, heads of ministerial-level agencies, Chairmen of People s Committees of centrally-affiliated provinces and cities and other relevant organizations and individuals are liable to execute this Decision. /.