Around the transformation of the management and business model of Quan Lau market

It was past 4pm on July 4th, at Quan Lau market, Truong Thi ward (Vinh city), the number of people coming to the market was still very sparse. In particular, the area selling clothes, fabrics, shoes and food had only a few customers.

Ms. Tran Hong Lam - a small trader selling household goods at Quan Lau market for nearly 20 years said that the amount of goods sold is decreasing. Although her kiosk is located on the street, adjacent to 2 main roads around the market, the number of customers is still decreasing compared to before.

“I have also heard about the plan to transform and renovate this market. When business is increasingly sluggish, change is necessary. However, what I am concerned about is how to renovate effectively, while the trend of online shopping is becoming more and more popular. If we build a big, beautiful, and impressive market, traders will have to save more money to invest but still cannot attract customers to the market, it will only make it more difficult for traders like us,” Ms. Lam confided.

With a prime location, Quan Lau market is close to the main roads of Vinh city, but for many years now, with the shifting shopping trend of the market, many shops in the market have been sluggish, with a decrease in the number of customers coming to buy directly, especially the kiosks located in the aisles deep inside the market.

Ms. Nguyen Thi Chau - a resident of Truong Thi ward, just bought vegetables on both sides of Nguyen Trung Ngan street behind Quan Lau market. She said that she has kept the habit of going to the market to buy food for decades.

However, “in recent years, I have rarely gone into the market area to buy food, because it is more convenient to buy food outside the market. Along both sides of the road around the market, everything is sold, there is no shortage of anything. However, selling on the roadside is quite messy. There are many days when traffic is jammed because of the large number of vehicles, especially during rush hour, and the stalls are spread out on the road,” said Ms. Chau.

Looking around the Quan Lau market, we saw that the later the afternoon, the more crowded the number of buyers and sellers along the two sides of the streets around the market. Meanwhile, the number of people entering the main hall of the market was not much. Not to mention that many kiosks were closed and covered in a layer of dust.

A vegetable and fruit vendor who has a location in a communal house near the market gate confided that she rented a location in the market, but every late afternoon she brings her vegetables and fruits out to the street to sell. She emphasized that although she did not want to encroach on the sidewalk, selling at the location she rented and paid monthly taxes for had few customers and no sales.

On July 4, which is only one day away from the weekday, people prepare offerings to burn incense at the beginning of the new month. “Before the Covid-19 pandemic, these days were normally crowded with customers buying votive offerings and burning incense. But in recent years, the number of customers has been low, and there are many unsold products. I inherited my mother’s stall, which is now over 70 years old, and am trying to do business to earn more income. I hope that the authorities will take some measures to change and renovate the market so that it can operate more bustlingly,” said a vendor with a kiosk selling votive offerings.

Find a conversion option

Faced with such a situation, it is necessary to reform the management, business and exploitation model of Quan Lau market. Regarding this content, the City People's Committee has reported to the Provincial People's Committee and the Department of Construction on a plan to arrange a temporary market to serve the investment in building Quan Lau market. The Provincial People's Committee has issued a document approving the location for building a temporary market in the central sports field of Truong Thi ward. The Vinh City People's Committee has also proactively reviewed and reported to the Provincial People's Committee and the Department of Finance on the plan to auction land lease rights and assets on Quan Lau market land and many documents sent to the Provincial People's Committee and relevant departments and branches. At the same time, it has organized work with departments and branches to find solutions.

On March 22, 2024, Vinh City People's Committee issued Report No. 95/BC-UBND to the Provincial People's Committee on requesting opinions on the plan to convert the management, business and exploitation model of Quan Lau market, Truong Thi ward, Vinh city. On that basis, the Provincial People's Committee issued Document No. 2508/VB-UBND dated April 2, 2024 on converting the management, business and exploitation model of Quan Lau market, Truong Thi ward. In which, the Department of Industry and Trade was assigned to preside over and coordinate with relevant departments and branches to consider the proposal of Vinh City People's Committee. The Department of Industry and Trade is collecting opinions from departments and branches and requesting Vinh City People's Committee to clarify some related contents at Quan Lau market. Currently, the City People's Committee has implemented the contents as requested by the Department of Industry and Trade.

In response to the dispatch of the Department of Industry and Trade, the People's Committee of Vinh City has issued a document proposing a plan to convert the management, business and exploitation model of Quan Lau market, which shows that: The implementation of converting the investment, management and exploitation model of markets in general and Quan Lau market in particular currently lacks a legal corridor. Firstly, Decree No. 02/2003/ND-CP dated January 14, 2003 of the Prime Minister on market development and management issued since 2003, is no longer consistent with current regulations.

To amend this Decree, the Ministry of Industry and Trade has chaired and consulted many times with ministries, branches and localities nationwide since 2022. On July 17, 2023, the Ministry of Industry and Trade issued Document No. 4673/TTr-BCT on reviewing and finalizing the Government's draft on market development and management. However, to date, a replacement Decree has not been issued.

Second, after the People's Committee of Nghe An province abolished Decision No. 72/2016/QD-UBND dated December 8, 2016 regulating the process of converting the model of organization, management, exploitation and business of markets in the province, there has been no replacement document for implementation.

The Department of Industry and Trade, the State management agency for new markets, only has Document No. 1200/SCT-QLTM dated August 5, 2020, providing general guidance as follows: Currently, the implementation of investment in development and conversion of market organization, management, exploitation and business models must comply with the provisions of the 2013 Land Law, the 2014 Investment Law, the 2017 Law on Management and Use of Public Assets and other relevant regulations.

In fact, at markets like Quan Lau market, there have been cases where small traders have repeatedly contributed money to renovate and repair items. at the market but without the policy of the competent authority, arbitrarily implemented and without records, documents, the time spanned over many years. The management boards of the markets over the periods also did not cooperate with the local authorities, so the handling of the above assets was difficult and took a long time to implement.

Another difficulty is that with the current e-commerce situation, it is very difficult to call on businesses to invest in the market.

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The Department of Finance also issued Document No. 550/STC-QLG&CS dated February 17, 2023 regarding the response to the auction plan of Quan Lau market, Truong Thi ward, Vinh city. Accordingly, the Department of Finance proposed 3 plans.

Option 1: In case Vinh City People's Committee inspects and confirms, commits that 100% of the assets on the current Quan Lau market land belong to the State, the Department of Finance agrees on the plan to auction land lease rights and auction assets on the land as proposed by Vinh City People's Committee.

Option 2:Proposing to convert the investment management model and construction of Quan Lau market according to the provisions of the Investment Law (implementing the proposal to consider and approve the investment policy of the project: Investment in construction and renovation of Quan Lau market, Truong Thi ward, Vinh city according to the provisions of the Investment Law).

Option 3:Implement the conversion of the investment management and construction model of Quan Lau market after the Government issued a Decree regulating the development and management of the market to replace Decree No. 02/2003/ND-CP and Decree No. 114/2009/ND-CP.

The conversion of market management, business and exploitation is practical, on the basis of ensuring the rights of business people. In the face of the unresolved situation, Vinh City is proposing that the People's Committee of Nghe An Province chair a working session, including relevant departments, branches, sectors and units to direct and remove difficulties and obstacles in the implementation process. At the same time, assign a department or sector (Department of Finance, Department of Planning and Investment or Department of Industry and Trade) to coordinate with the City People's Committee to advise on specific plans, promptly submit to the Provincial People's Committee for consideration and decision so that the City People's Committee has a basis for implementation according to regulations.