How to 'revive' traditional markets?
The development of the Internet and the habit of buying and selling on social networks have changed the bustling image often seen in traditional markets. How to maintain and develop traditional markets, meet the requirements of development, and serve social security is the current issue.
Traditional markets are deserted.
Do Luong Market and Trade Center are located in Do Luong town and Yen Son commune, next to National Highway 7, which will officially operate at the end of 2021. This area has a prime business position, is a "gateway" connecting strong trade with neighboring areas, the most important factor for business success.
Ms. Hang, a small trader of agricultural products here, said: “We feel secure when doing business at the new market. The newly built market is spacious, modern, clean, beautiful, no longer have to worry about electrical short circuits, security and order are guaranteed. However, business is increasingly difficult, online sales are on the rise, plus the hot weather makes people come to the market less to buy. Some of us small traders have to sell directly and introduce ourselves on Facebook to find orders, and ship directly to consumers.”
Mr. Nguyen Cong Minh - Director of Do Luong Market Management Board said that after nearly 2 years of operation, the unit has contributed greatly to the district budget, but business is becoming more and more difficult. Currently, the vegetable, root and fruit stalls at the wholesale market here are still operating effectively, people are doing business from 3am to 7am, the rest are generally deserted. Since the beginning of the year, many traders have taken a break, especially in the fields of fashion, cosmetics... Currently, only about 60% of traders are doing business, the situation will be more difficult in the future.
This is the general picture of traditional markets. The habit of buying and selling online has changed the bustling image of buyers and sellers in the markets before.
Even in Vinh city, some large markets are now deserted, with traders sitting boredly on their phones. A handbag trader on the second floor of Vinh market shared: Goods are sluggish, while doing business at the market costs a lot of money for premises, transportation... so prices are hard to compete with online businesses.
In addition to the difficulties caused by fierce competition from online businesses, traditional markets also face many other shortcomings. According to assessments, only a few large-scale, modern markets that attract investment meet the requirements of fire prevention, fire fighting, and environmental sanitation such as: Do Luong Traditional Market Combined Trade Center, Kim Son Market (Que Phong), Hoang Mai Market, etc. There are many semi-permanent markets with temporary facilities.
The common characteristics of the traditional markets are that the goods are displayed in a disorderly manner, blocking the walkways, extending the canvas, the electrical system is degraded, the fire prevention items are not guaranteed... the risk of fire and explosion is present in the hot season. The markets are almost only equipped with equipment such as fire extinguishers, hammers..., do not have their own warehouses but take advantage of the business locations as warehouses.
At Vinh market, the largest market in Nghe An province, many traders do not leave their goods in kiosks but instead spread them out in the hallways, narrowing the aisles and affecting rescue and escape efforts in the event of an incident.
Markets in Vinh City are in a similar situation. At Quan Lau Market, after nearly 30 years of operation, many items have seriously degraded. In particular, the electricity supply system at the market is rusted, damaged, and at high risk of electrical short circuits.
In addition, most markets do not have a place to collect garbage, and there is still a situation of littering, causing loss of aesthetics and affecting environmental hygiene. The main business lines in the market today are fresh food, groceries, dried and processed agricultural products, products of small producers... Of which, fresh food has the largest number of businesses, accounting for 47.6%. This item is basically processed right in the market, in areas that have not been specifically designed, do not have a drainage system, and do not have qualified wastewater treatment, so it is often highly polluted and increases the risk of spreading when there is an epidemic...
Increase competitiveness
According to the Department of Industry and Trade of Nghe An, there are currently 371 markets in operation in the province, including 7 class I markets, 20 class II markets, 240 class III markets, and 104 unclassified markets. Most of the markets are built on public land, a few are invested by enterprises/cooperatives. Most of the markets existed before the Government issued Decree No. 02/2003/ND-CP, and the average area of business locations is only 2 - 2.5m2.2(not meeting 3m standards)2).
In the 2021-2024 period, Nghe An has mobilized investment resources of nearly 25 billion VND to build new and renovate a number of rural markets. In addition, based on the development investment capital from the central budget under the National Target Program for Socio-Economic Development in Ethnic Minority and Mountainous Areas, in the 2021-2024 period, 11 new markets in ethnic minority and mountainous areas will be built and upgraded with an amount of 16.01 billion VND.
Mr. Cao Minh Tu - Deputy Director of the Department of Industry and Trade said: The market network in the province has developed in recent times, contributing to promoting the consumption of goods, meeting the needs of production and people's lives in the area. The socialization of market investment has initially changed positively, creating a driving force to promote enterprises and cooperatives inside and outside the province to participate in investing, managing and exploiting markets in the province. Markets in mountainous and rural areas have been interested in integrating into programs by all levels, sectors and localities to have capital to renovate, upgrade and build new markets.
Nghe An is the largest province in the country, with 2/3 of the terrain being mountainous, markets were formed and developed spontaneously a long time ago. Therefore, in the period of 2021-2024, the whole province upgraded, renovated, and invested in building new markets with a capital of about more than 40 billion VND, which is a modest result. State management of the market system is still inadequate, lacking strong direction from district to commune levels; still being implemented according to Decree No. 02/2003/ND-CP and Decree No. 114/2009/ND-CP of the Government that have been issued, which are no longer suitable to reality and relevant legal regulations (Decree No. 60/2024/ND-CP of the Government on market development and management will take effect on August 1, 2024).
Support services at markets are still simple, mainly loading and unloading services, transporting goods, especially for markets in rural and mountainous areas, this is almost the only service; value-added services such as processing, packaging, preservation, financial services, information services... are not yet developed. There is a lack of services such as product promotion and sales on digital platforms such as Zalo, Facebook..., to find wholesale and retail sources of goods.
Meanwhile, the impact of the digital economy has changed people’s shopping and consumption habits from direct sales to e-commerce. On the other hand, the rapid development of modern distribution systems such as supermarkets, shopping malls, convenience stores, shops along major roads and around markets… has affected the operational efficiency of markets.
The biggest advantage of traditional markets is that customers can experience the products. In order for the market network to develop and become a lever to maximize its role in promoting the circulation and consumption of goods and serving people's lives, it is necessary to develop a market network development plan in accordance with urban planning and new rural construction planning.
Focus on investing in developing and modernizing markets in urban areas; upgrading and renovating traditional markets in rural areas, mainly traditional markets, fairs, and temporary markets, ensuring environmental hygiene and safety conditions and fire prevention and fighting.
In addition to solutions to strengthen State management, mechanisms, policies... it is necessary to diversify sales methods. With the current trend of digital transformation in business, small traders need to change the services provided to customers; proactively approach online and livestream business channels to keep up with market demand. At the same time, improve service quality, build a civilized and polite business culture, and increasingly better meet the needs of customers and consumers when coming to traditional markets.
Mr. Cao Minh Tu - Deputy Director of Department of Industry and Trade