Diversify investment forms in market construction in Vinh City

(Baonghean.vn) - To increase investment capital for markets to ensure spacious facilities, enough space for traders, ensure the city's beauty and increase budget revenue, Vinh City has promoted the diversification of market types, associated with the transformation of the organization, management, exploitation and business models of diverse markets.

Diversify investment forms

Vinh City currently has 19 markets, including 2 first-class markets. In fact, over the past 5 years, the city has "socialized" the investment in market exploitation in many forms such as: Enterprise model of business, management, and market exploitation through bidding or transfer, which can be organized according to the following types: state-owned enterprise, joint stock company, limited liability company, cooperative, private enterprise; Enterprise or cooperative model investing in market construction, then organizing business exploitation and market management (applicable to newly built markets); Market Management Board model is a revenue-generating public service unit, self-funding expenses, having legal status, having its own seal and account at the State Treasury.

Investment in construction of the Western market by Song Tien Trading Company

In the model invested in, exploited and managed by enterprises, there are currently Cau Thong market (Trang Anh Company), Tecco Vinh Tan market (Branch of Tecco Mien Trung Joint Stock Company), Truong Thi new market (Kim Truong Thi Company), Nghi Kim market (Truong Son Construction Joint Stock Company) and Song Tien Construction and Trading Joint Stock Company investing in the Western Agricultural Products Area of ​​Vinh market. Enterprises have invested capital in these markets, creating new market infrastructure to meet people's shopping needs. For example, Tecco market in Vinh Tan ward has been completed, the company has completed the management apparatus, internal rules and regulations. After the market was completed, the City People's Committee cleared Vinh Tan temporary market to bring households to do business at the market. Up to now, there are over 80 households with 80 people doing business at the market.

Truong Thi New Market was built by Dong Duong Song Hong Joint Stock Company and put into use in 2012. Currently, the market has been operating stably with a total of 116 stalls and booths, and a total of 120 traders. The agricultural market area west of Vinh market is currently being invested in to expand the western agricultural market area. This market area is invested in by Song Tien Construction and Trade Joint Stock Company under the BOT form. The project has been approved by the City People's Committee, the Standing Committee of the City Party Committee, the Provincial People's Committee and the Ministry of Planning and Investment. Nghe An Provincial People's Committee has issued a Decision approving the feasibility study report, a Decision approving the results of selecting investors under the Build - Operate - Transfer (BOT) contract. The investor has signed a contract with Vinh City People's Committee to invest in building an agricultural market on a planned land area of ​​9,290 m2.

The project's operating period is 25 years (including 2 years of construction and 23 years of management, exploitation and use). Currently, Song Tien Construction and Trading Joint Stock Company has invested in the construction of project items including: booths, yards, lighting and sales pavilions... in accordance with the approved planning. Mr. Thai Ba Nghia - Director of Song Tien Construction Joint Stock Company said: "The project has an investment of 20 billion VND, completely invested by the company, the operating mechanism is to rent booths to business households. The expected monthly booth rental fee is about 1-1.2 million VND. After the prescribed period, the market will be handed over to the state for management. Song Tien Company has completed phase 1 with a total investment of 12 billion VND, putting 400 business locations into operation".

The above models show that markets invested by businesses are quite effective, both reducing the budget and creating a spacious infrastructure. This form of investment has separated state management from business management, and the market apparatus is extremely compact.

For the model of cooperatives investing, managing, operating and exploiting markets: Phong Toan Market, Coi Market, Quyet Market, Nghi Lien Market... this is a form of the City creating jobs and income for households and cooperatives whose land has been reclaimed by the State. Recently, the City has directed the transfer of investors to build a number of markets to cooperatives to invest in construction, management, business and exploitation based on consideration of investment plans and capital mobilization capabilities of the cooperatives. Phong Toan Market, Ha Huy Tap Ward, was quite deserted when we visited recently, some stalls had no business people. Phong Toan Cooperative mobilized capital, construction plans and started construction of the market in October 2009, put into use in 2012 with a total investment of over 21 billion VND. The market has 398 business locations, with a total of 250 business households.

Outside Vinh market still needs investment and upgrading

Another model that the city is implementing is the model of the market that is currently operating and converting to the market cooperative model, including the markets of Ben Thuy market cooperative, Kenh Bac market cooperative, and Cua Bac market cooperative. These are markets with a large number of stalls and a large amount of fees collected. For example, the total fee and charge collection of the 3 market cooperatives in 2010 was 3.1 billion VND, in 2014 it reached 2.3 billion VND. The state budget contribution of the 3 market cooperatives in 2014 was 657 million VND, creating jobs for 2,398 workers.

The transformation of the model from the Market Management Board to the Market Management Cooperative model through the transfer method in the past has achieved clear and positive economic efficiency. The Market Cooperative has created new jobs for cooperative members and workers by organizing service activities such as parking, electricity, water, security, loading and unloading, and cleaning. However, the implementation process has encountered many difficulties and confusion, and there is no high consensus from the Party Committee and local authorities due to lack of awareness about the model transformation.

For Vinh market and Vinh Railway Station market, due to their specific characteristics, they are currently still managed by the City through Market Management Boards with legal status.

For the market to operate effectively

Faced with the diversity of market management and investment forms and the focus on converting markets to new management models, the effectiveness is still unclear. For example: Markets managed and invested by cooperatives are one of the solutions to consolidate and innovate cooperatives in the direction of multi-sector and multi-industry production and business, promoting the internal strength of cooperatives as well as solving employment for cooperative members. However, the market management apparatus is still limited in capacity, professional qualifications, and lacks sensitivity to market mechanisms.

Assessing the effectiveness and upcoming solutions, Mr. Nguyen Van Chinh - Vice Chairman of the City People's Committee said: "After 5 years of implementing and carrying out projects and plans, the City has achieved some important initial results in terms of responsibility, ideological awareness; in planning, building and converting investment models, management, business and market exploitation, mobilizing resources, meeting the business needs of small traders, ensuring civilized trade, increasing revenue for the budget. State management work is concerned, infrastructure is gradually invested to be more spacious and modern. The process of converting investment, management, business and market exploitation ensures democratic and public rights for small traders doing business at the market.

However, there are still some shortcomings. That is, the process of implementing the conversion of the organization, management, business and exploitation model of the market from the City to the wards and communes is still confused and lacks experience in directing the implementation. Therefore, in order for the markets to operate more effectively, in the coming time, the city's direction is to continue mobilizing resources, upgrading and renovating the market infrastructure, especially attracting investment from businesses, including attracting foreign investment to increase more brands and products to attract buyers. At the same time, the market is built with state budget support according to policy, the remaining part is contributed by economic sectors to establish LLCs and joint stock companies; the state capital is transferred in the form of auction or choosing a model to convert, depending on the scale of the market".

In reality, Vinh City currently has many markets, many of which have not yet exploited their potential and strengths, and are still wasteful in their use. The city needs to focus on reviewing the planning of the market network in the city to supplement or remove from the planning inappropriate markets, and eliminate illegal markets and sidewalk markets. In addition, it is not necessary to invest in building new markets. For markets invested by enterprises, the rental price for stalls for business households is still high, affecting the income of small traders. The reality is that even though there are markets, due to high fees and high stall prices, many small traders still sit outside the market, affecting traffic and urban order. State management will be more difficult when other economic sectors invest in markets. The city needs to attract large investors who are both dedicated and visionary in investing in market exploitation, so that a significant portion of the city's workers have the conditions to do business, trade, and have a stable, long-term place to do business with reasonable prices, creating a competitive environment in terms of prices inside and outside the province, especially when Vinh is developing into an economic, commercial, financial, and cultural center of the North Central region.

Chau Lan.