Chaos in the "supermarket" industry.
(Baonghean)The retail distribution model through supermarkets has long been known to the public as a modern, convenient, and relatively reputable business model, gradually attracting more shoppers. However, in Vinh City and some districts and towns in the province, many organizations and individuals unintentionally or intentionally use the name "supermarket" to name their stores without knowing or caring whether this is right or wrong.
The "Flower Supermarket" on Nguyen Van Cu Street (Vinh City) is a space of about 15 square meters, displaying a chaotic jumble of pots and vases of fresh flowers haphazardly arranged along both sides of the walkway, without any order whatsoever. Customers can easily spot a sign that boasts the "class" of "TT Flower Supermarket". Similar types of shops are not uncommon on many streets, ranging from specialized to general stores, selling everything from furniture and electronics to even an "Ice Cream Supermarket" right on Ho Tung Mau Street. Inside the "Ice Cream Supermarket," customers find no difference from a regular ice cream shop, although the space is larger than the "Flower Supermarket."
Not only do they lack space, but most stores that "call themselves" supermarkets in the province also lack many things such as product variety, fire safety systems, restrooms, and parking facilities. Some "supermarkets" lack organization and arrangement of goods by category and group in a civilized and scientific way to serve customers in convenient and quick selection, shopping, and payment; they also lack places to store personal belongings, services for people with disabilities, and home delivery.
According to statistics from the Department of Industry and Trade: “Currently, there are 26 general and specialized supermarkets in the province, mainly concentrated in Vinh City. However, according to the regulations of the Ministry of Trade (now the Ministry of Industry and Trade) on supermarkets and shopping centers, only Intimex I and Intimex II supermarkets and Maximark supermarket meet the standards of a Class III supermarket, while Big C and Metro Cash & Carry supermarkets meet the standards of a Class I supermarket. The other supermarkets only meet the scale and business conditions of convenience stores or self-service stores.”
According to the regulations, supermarkets are classified into three categories: Category I, II, and III. Category I general merchandise supermarkets must have a business area of 5,000 square meters or more, a product catalog of 20,000 or more items (for Category I specialized supermarkets: a minimum area of 1,000 square meters and a minimum of 2,000 product items), and meet other standards; Category III supermarkets have the smallest area requirements and the fewest product catalogs. Category III general merchandise supermarkets require a business area of 500 square meters or more and a product catalog of 4,000 or more items. All supermarkets must provide parking, install fire safety equipment, construct warehouses, and are required to have restrooms for customers.
The chaotic and arbitrary naming conventions, fragmented business models, and questionable quality of supermarkets will be very detrimental to Vietnamese businesses during their WTO accession. Foreign retail groups will overwhelm and control the market share of domestic suppliers due to their professionalism and supply capabilities. This ambiguity in naming conventions also erodes consumer trust and affects their rights, as it is unclear which supermarkets actually operate according to standards and quality.
Le Thi Lan Huong
