Market management model conversion still has many shortcomings

(Baonghean) - Changing the market management, exploitation and business model is considered a solution to improve operational efficiency and be in line with the trend of civilized trade development. However, after more than 9 years of implementing the conversion policy, this work still has many shortcomings...

Post-conversion effectiveness

Vinh City is the leading locality in implementing the transformation of market management models, with 12/29 markets in the area having been transformed. For example, the Vinh Western Agricultural Market was invested in and built under the BOT model, has been in operation for more than 1 year, and has become a wholesale market for purchasing and consuming agricultural products for farmers in the province.

» How is Da Nang market different from Nghe An market?

Giat Market (Quynh Luu) after converting to a management enterprise model became a bustling trading center of the district.

Since the market came into operation, it has solved the problem of rampant trading of goods in the Hong Son street area, in front of Vinh market gate, creating urban beauty, order and traffic safety. The market has solved the business location for nearly 500 small traders with stable business locations.

Previously, Giat market (Quynh Luu) was narrow and shabby, with businesses spilling out onto the street. However, since 2009, the market has been converted to a business management model, invested in expansion, and built 2 spacious floors, attracting over 820 businesses.

Mr. Nguyen Son Ha - Head of the Economic - Infrastructure Department of Quynh Luu district said: Previously, the market contributed to the local budget only nearly 1 billion VND/year, but in recent years it has increased to 30 - 40%. In addition, the management enterprise ensures investment in upgrading and renovating the market, fire prevention and fighting, security and order, food hygiene and safety...

Still stuck in many ways

However, according to assessments, Nghe An is one of the localities that has implemented the slowest market management model conversion in the country.

Implementing the policy of converting market management model since 2007, up to now only 16/405 markets have converted management model. Therefore, this collection contract is still inconsistent, causing budget loss.

The people assigned to manage the market have not paid attention to investing in renovating and upgrading the market. Therefore, the market's facilities are increasingly degraded, especially fire prevention and food safety.

Phong Toan Market (Vinh City) was converted to be managed by a cooperative but only attracted 160 business households out of a total of 400 kiosks.

The common situation of many market management cooperatives is that the number of members is still small, and many members have not been developed among traders doing business at the market, so capital mobilization is low and business efficiency is not high.

For example, Phong Toan market (Vinh city) is located in a convenient location, invested over 20 billion VND, built 2 spacious floors, managed by the cooperative, but up to now, the 2nd floor of the market is still unused; there are only 160 business households out of a total of 400 stalls.

Vo Liet Shopping Mall (Thanh Chuong) was built with billions of dong invested by businesses and opened 6 years ago but is still abandoned. Photo: Dinh Ha

Although the locality has implemented the market conversion quite effectively, according to Mr. Tran Quang Lam - Head of Vinh City Economic Department, the conversion from traditional markets to cooperative management still faces many difficulties: "Currently, there are 3 traditional markets in operation in the area (Ben Thuy market, Bac canal, Cua Bac) that have been transferred to cooperative management.

However, when mobilizing to establish cooperatives, most small traders had little capital, so only a few households contributed capital and became members of the cooperative. Households that were not members of the cooperative were always worried about losing their business locations, leading to conflicts.

There are markets that have been newly built by businesses, but are still "stuck" in many ways and have to be abandoned, wasting a large amount of budget.

Proportion of components participating in management 405 markets in the area. Graphics: Tran Hai

For example, the Vo Liet shopping mall (Thanh Chuong) was invested with tens of billions of dong to replace the old market that had deteriorated, but even though it has been open for more than 6 years, this shopping mall is still "inactive".

Discussing the reasons why people are not interested in the new shopping mall, Mr. Tran Van Ky - Chairman of the People's Committee of Vo Liet commune said: "Local people and traders have the habit of doing business in the old market right next to Ro bridge. On the other hand, the design of the kiosks in the market is too small, the market fees are higher, the location is not convenient...".

There are still many difficulties in implementing the policy of converting the market management model. According to Ms. Vo Thi An - Deputy Director of the Department of Industry and Trade, the biggest difficulty in converting the market management model is that it has not received high consensus from the People's Committees of communes, wards, market management boards and lack of enthusiasm from businesses. On the other hand, the process and procedures for converting the market management model issued by the Provincial People's Committee, including the bidding regulations for organizations and individuals to invest, manage and exploit the market, are no longer suitable for reality.

Therefore, to create a "corridor" for the conversion of market management models, the Department of Industry and Trade is submitting to the Provincial Party Committee regulations "On the process of converting the model of organization, management, business and exploitation of markets in Nghe An". Accordingly, depending on the time, localities will choose the markets that need to be converted and develop a specific conversion roadmap. After the Provincial People's Committee issues regulations, there will be specific instructions for localities to apply and remove difficulties in the process of implementing market conversion.

Dinh Nguyet