Deteriorating infrastructure
Currently, Hanoi has about 540 traditional markets. This market model takes care of more than 50% of the shopping needs of people in inner-city districts and about 70% of the needs of people in the suburbs. However, many traditional markets are seriously degraded, not ensuring requirements on hygiene and safety, fire prevention, commercial civilization... causing many traditional markets to be deserted.
Like Cau Giay market (Cau Giay district), from a bustling, bustling market with more than 200 households trading on 2 floors, but now there are only nearly 30 households trading on the first floor. Similarly, Kim Lien market (Dong Da district) is a 3rd class market, the market area is only about 1,000m2 with 199 business locations. Up to now, after decades of operation, the entire market has seriously degraded, the traders all want the market to be renovated and rebuilt to attract more customers.
To renovate and upgrade traditional markets, the Hanoi People's Committee has issued a Plan to implement the target of investment in construction and renovation of markets in the city in the period of 2024 - 2025. Accordingly, the city will invest in building 17 new markets, renovating, repairing and upgrading 21 markets. Deputy Director in charge of the Hanoi Department of Industry and Trade Nguyen Kieu Oanh said that the unit has coordinated with departments and branches to resolve difficulties and obstacles in implementing investment, construction and renovation of markets. To date, Hanoi has completed investment in construction and put into operation 4 markets including: Phu Do market (Nam Tu Liem district), Dong Tam market (Hai Ba Trung district), Tram Troi town center market (Hoai Duc district), Chau Long market (Ba Dinh district).
Propose that the Department of Planning and Investment speed up the progress of developing a detailed plan for market development at a scale of 1/500, thereby creating a basis for localities to call for businesses to invest in building and renovating the traditional market system in the area.
Chairman of Dan Phuong District People's Committee Nguyen Van Duc
Regarding market renovation and upgrading, by October 2024, districts, towns and cities have completed the renovation of 19/38 markets. It is expected that by the end of 2024, Hanoi will complete the construction of 4 new markets. By the end of 2025, it is expected that 2 new markets will be completed in Bac Tu Liem and Nam Tu Liem districts; and 10 more markets will be renovated.
Inadequacies in attracting capital to renovate the market
In reality, although the Hanoi People's Committee has focused on upgrading and renovating traditional markets, there are still many shortcomings in the implementation process. Nga Tu So Market (Dong Da District) was built in 1987 with an area of over 8,500m2, considered a class 1 market, but has degraded to an alarming level.
In the city's plan for the 2021-2025 period, Nga Tu So market is included in the list of new construction projects, but it is currently still in its old state, although according to the authorization, the market investment has been assigned to the district level and is allowed to use public investment capital. The reason is that in the investment regulations, the district level is allowed to use public investment capital for "people's markets". However, people's markets are classified as class 3 markets, so class 1 markets like Nga Tu So market have difficulty accessing budget capital.
Not only Nga Tu So market is facing difficulties in the process of renovation and new construction, but many market construction and renovation projects in Hanoi are also in a similar situation. The reason is that many localities are facing difficulties in criteria for commercial infrastructure, especially localities that are building advanced new rural areas and striving to become districts. Deputy Director in charge of Hanoi Department of Industry and Trade Nguyen Kieu Oanh shared that the implementation of market planning is still slow. Converting the market model also faces many difficulties, wanting to switch to a socialized form, but cannot be assigned to enterprises because the land is still public land, leading to difficulties in handling procedures for land allocation and land lease of markets after conversion, Decree No. 167/2017/ND-CP makes enterprises not interested in participating in investment.
In addition, according to regulations, when building a new building, the density is only 60%, the rest is for auxiliary works and green infrastructure. This makes it impossible to arrange 100% of traders to do business on the first floor, and it is difficult to have more than 50% of traders agree with the construction of a new traditional market system.
Vice Chairman of the People's Committee of Nam Tu Liem District Phung Ngoc Son said that although the State has agreed to use the budget capital to invest in building the market, there are many difficulties in the implementation process, especially the limited land rent, which has not encouraged investors to boldly invest according to the call of the City. "The Department of Construction has instructions to remove the difficulties because there are many bidding documents, it is possible to apply the form of auctioning public assets, bidding for joint ventures managed by the State, bidding for the exploitation management part, but not allocating land, because currently no land use certificates are issued..." - Mr. Phung Ngoc Son suggested.
According to Chairman of Dan Phuong District People's Committee Nguyen Van Duc, currently, people in the district have a need to exchange and consume agricultural products with neighboring localities, but there is no wholesale market to serve this need. The reason is that the Department of Planning and Investment has not yet developed a 1/500 planning for the market system, so the locality has not been able to socialize investment capital.
Need mechanism for business
To attract businesses to invest in renovating the traditional market system, according to economic experts, it is necessary to build an open mechanism for businesses. On the contrary, businesses investing in building and renovating markets should design them according to their functions.
To overcome difficulties in renovating and building new market systems, Deputy Director in charge of the Department of Industry and Trade Nguyen Kieu Oanh proposed that the Ministry of Finance have a support mechanism for exemption and reduction of land rent, preferential loan interest rates for market construction investment... for enterprises participating in investment, construction, management, business and exploitation of markets. At the same time, it is recommended that the Ministry of Industry and Trade have clearer regulations related to the rights and responsibilities of business households in each case of being assigned or leased business locations, as well as how to handle cases that have signed contracts to lease business locations and paid in advance for business location rent to build markets... Hanoi City is interested in considering the arrangement of public investment funds in the market sector to ensure funding sources for market investment and renovation according to the list and criteria set forth in the Programs of the City Party Committee.
From the Long Bien market renovation model, Head of the Long Bien Market Management Board (Ba Dinh District) Nguyen Trong Nghia said that the traditional market only needs moderate investment, ensuring convenience, with appropriate fees for traders to continue doing business. In the short term, it is possible to renovate each part to ensure fire prevention and fighting and food hygiene and safety. Regarding the market renovation and upgrading, Architect Tran Huy Anh - Vietnam Association of Architects also said that traditional markets have always been located in convenient traffic locations to attract customers and facilitate buying and selling. However, many investors have renovated the market in the direction of becoming "complexes" of markets - apartment buildings or markets - offices for rent, so they do not attract traders to do business. Therefore, to attract businesses, investors in the process of renovating the market must restore its original function to create a highlight for urban architecture. In addition, it is necessary to get opinions from the small business community and people about the renovation plan, using that as a basis for appropriate adjustments.
Traditional markets still ensure the supply of 80% of fresh goods to people, solving output for production. In order for traditional markets to attract consumers, the first thing to do is to renovate the market with a clear and transparent plan; Set standards and criteria for building a civilized market, train market staff, organize goods sources and list prices...
Former Chairman of Hanoi Supermarket Association Vu Vinh Phu
Source: https://kinhtedothi.vn/cai-tao-cho-truyen-thong-phu-hop-voi-doi-song-dan-sinh.html
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