Nghe An will convert 200 markets

March 11, 2017 11:37

(Baonghean) - According to the plan set for 2020, over 50% of markets in Nghe An province will switch to enterprise models, cooperatives to exploit, operate and manage markets.

The policy of market conversion was decided by the Provincial People's Committee along with the promulgation of "Regulations on the process of converting the model of organization, exploitation and business of markets in Nghe An province" (No. 72/2016/QD-UBND effective from December 26, 2016).

The goal of the conversion is to upgrade the infrastructure of the markets in a civilized direction, ensuring good fire prevention and fighting, environmental sanitation, security and order, and food safety in the market; creating conditions for small traders to exploit business efficiency well, actively contributing to the State budget.

Cán bộ Sở Công Thương khảo sát mô hình chợ được chuyển đổi theo hướng văn minh, đảm bảo ATVSTP ở chợ Hàn - Đà Nẵng. Ảnh: Nguyên Sơn
Officials from the Department of Industry and Trade surveyed the market model that has been transformed towards civilization, ensuring food safety at Han market - Da Nang. Photo: Nguyen Son

The market conversion work was assigned to 9 functional departments and branches and the People's Committees of districts, cities and towns, in which the Department of Industry and Trade was assigned to take the lead. Immediately after the province's policy was issued, the Department of Industry and Trade coordinated and urged localities to review all current status of each market (including land, assets, constructions, equipment, etc.); evaluate the business performance of the market in the last 3 years and the forecast for the next 3 years (number of lots, stalls, small traders, business lines; revenue and expenditure results and management and use of revenue and expenditure at the market, etc.).

At the same time, the organization established a District Market Conversion Board to carry out procedures, determine conversion methods, time for business contracting, market exploitation and management, financial plans, labor arrangement, and market environmental sanitation management...

According to Ms. Vo Thi An - Deputy Director of the Department of Industry and Trade, the conversion of traditional markets is an inevitable requirement in the new era and all conversion processes must be highly unified by the district, commune and small traders when deciding to choose an investment enterprise or form a cooperative model to manage the market. With the new conversion method, the markets will have their infrastructure upgraded, ensuring food safety and hygiene requirements, maintaining civilization in market business and managing revenue sources well for the budget.

In fact, for a long time, many markets have been assigned to a management team and contracted to collect revenue, so the revenue efficiency is not high and the reinvestment in repairing and upgrading market infrastructure has not been carried out, causing the already temporary markets to deteriorate further... The Department of Industry and Trade will actively advise localities to organize the conversion work well. As for markets in areas with particularly difficult socio-economic conditions, slow capital recovery, and difficulties in the process of converting the market model, the market model conversion plan has proposed support mechanisms so that the conversion can be carried out smoothly.

Chợ Cồn (Thanh Chương).Ảnh: P.V
Con Market (Thanh Chuong). Photo: Nguyen Son

Ensuring harmony of interests

Traditional markets are places for trade, commerce and cultural exchange among local people. There are markets that have been established for hundreds of years and it is difficult to “marry a new market”. Therefore, market conversion is prioritized to upgrade infrastructure and facilities on the old market grounds, except for market areas that are not in the planning or affect security and order, so it is necessary to consider a relocation plan.

“However, all forms must ensure the harmony of interests between the parties, which are the interests of traders and the people; the interests of investors and contributions to the budget. A basic principle in the conversion process is that managers and investors must work specifically, discuss and reach an agreement with traders before proceeding with the conversion...”, Ms. Vo Thi An emphasized.

Through discussion, Mr. Phan Duc Thinh - Deputy Head of Trade Management Department, Department of Industry and Trade added: Up to now, the districts are reviewing the actual markets and establishing Market Conversion Boards under the direction of the province. The District Market Conversion Board needs to coordinate with investors or cooperatives and traders to develop a set of market regulations according to regulations (if not yet available) to submit to the People's Committee of the competent authority for approval according to the market management decentralization; at the same time, closely monitor the organization and operation of the market according to the new model; publicize economic information, policies, legal regulations and obligations of the parties to the State in market business activities.

According to Mr. Thinh, the plan is that by the end of November 2017, districts, towns, and cities must establish a Market Conversion Board and carry out the procedures for converting and managing markets according to the new model.

According to preliminary statistics, each year 405 markets in the province contribute about 21 billion VND to the budget, of which Vinh market alone contributes nearly 6 billion VND. The goal by 2020 is to have over 50% of the markets in the province converted to the model of enterprises, cooperatives for market exploitation, business and management. Of which, 100% of wholesale markets, grade 1 and grade 2 markets; markets in wards, markets in the center of towns and districts will convert to the model of enterprises, cooperatives for market exploitation, business and management.

Nguyen Nguyen

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