Ha noi trade development towards civilization and modernization until 2020, vision to 2030

Hanoi should focus on building the network of various civilized, modern trade organizations in Hanoi for agile development, rational structure, with the participation of all economic sectors and types of organizations, operating in a competitive environment with the management and macro-regulation of the State. By 2020, the network of various civilized, modern trade organizations in Hanoi will become the main sales channel in the market of the city; cargo traffic speed is accelerated; price and quality of goods circulated through the system is stable; sales services rendered increasingly diverse, quality and contribute actively to the implementation of the task of protecting and improving the environment; the level of development of retail market are markedly improved, contributing to improving the urban civilized lifestyle, standard of living and quality of life of people of the capital, Hanoi build a major commercial center of the country , have positions in the region.

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towns established the Steering Committee of mordern civilization commercial construction at its own level (city, district and town). Based on the above criteria, Hanoi People's Committee has decided to assess a scale for each criterion with a total score of 8 criteria is 100. Commercial business establishments registered trade execution. If they gain over 95, they will be considered as commercial standards of mordern civilization. 1.4.3.2. Mordern Civilization commercial criteria for districts and towns: a. Criteria: Counties, districts and towns in the city of Hanoi are civilized and modern when 3 criteria are sastisfied: (1) 90% commercial business facility meet the criteria of modren civilization. (2) Market to be qualified of the Ministry of Science and Technology. (3) No temporary illegal market. b. In consideration and recognition: Hanoi People's Committee established Steering Committee of Hanoi modern civilization commercial development. Based on the above criteria, the municipal People's Committee has decided to assess a scale for each criterion; the total score of 3 criteria is 100. Districts, counties and townships reach over 95 will be considered commercial standards of modern civilization. 1.4.3.3. Hanoi modern civilization criteria: a. Criteria: Hanoi commerce sector meet the modern civilization standards when 3 criteria are sastisfied: (1) 80% of districts, counties and towns reach modern civilization criteria. (2) ECommerce: 95% of online sale website meet the City standards of business registration, merchandise quality, safe payment and guarantee related services. (3) The proportion of goods distributed through a network of various modern civilization commercial organizations are more than 60%. b. On consideration and recognition: Based on the above criteria, the Hanoi People's Committee proposed Ministry of Industry and Trade on assessment and accreditation Hanoi has reached commercial standards of modern civilization. They also have policies to support Hanoi trade development growth in the next period. 1.4.3.4. Qualitative criteria: (1) Civilized and modern characters of modern civilization commerce. (2) The accessibility various types of modern civilization commerce. (3) The competitiveness of various types of modern civilization commerce. (4) Consumers, domestic and foreign press have many opinions, news articles with positive reviews. 1.4.4. The necessary requirements to achieve commercial development criteria towards modern civilization in Hanoi (1) Planning: The trading facility must be arranged in accordance with the planning. Simultaneously, the construction of works must comply with the plan. (2) Facilities of stores: * For commercial business facility of civilization and modernity: Location, the scale of business area; Stores are built solidly with high aesthetics, advanced technology, modern facilities and equipment; Professional logistics system; Standardized display and sale facilities (counters, cabinets, shelves, etc.); In the design of the storefront using electronic billboards, glass cases systems, windows, etc. ensuring characteristics of each brand names, etc. * For traditional businesses: They have to meet the basic requirements of the construction industry and architecture of the building. The embellishment of the traditional retail stores have to preserve cultural identity. Particularly, markets in these areas have to meet the standards of the Ministry of Science and Technology on the market design criteria in Decision 3621/QĐ-BKHCN announced Vietnam standard TCVN 9211:2012. (3) Goods: * For commercial business facility of civilization and modernity: Goods are selling through a network of various modern civilization commercial organizations have to be labeled; frequently inspection of quality, food safety and other regulations related to the commodity; Goods have to be held and arranged by commodity, a scientific group, neat and spectacular in each line or group of goods; All kinds of goods, business services have to have listed price. * For traditional business: Goods must have quality guarantee, right packing. (4) Sales methods: * For commercial business facility of civilization and modernity: Sales is mainly by mode of customers’s option applying innovative payment instruments; Depending on the characteristics of each commodity business, it is organized or jointly organized various of pre-sales, sales and after-sale services. * For traditional business: Ensuring convenient for purchasers. (5) Method of service: Sellers have to perform "Code of Conduct: Hanoian are elegant and civilized". (6) Labour: * For commercial business facility of civilization and modernity: Management and store staffs are to be trainned and fostered as prescribed. * For traditional business: Mobilizing all small businesses in turn to attend training course on "sale skills". Sellers have commitments with the content " Code of Conduct: Hanoian are elegant and civilized". (7) Environment: Business establishments commercial activities without harming the environment and with green, clean and beautiful environmental activities. (8) Security at these business establishment is maintained. (9) E-Commerce: The online shopping websites have to registered business, ensuring product quality, billing and service. 1.5. Factors affecting the modern civilization commercial development - Economic factors. - Policies and laws on commerce of the State management. - Environmental, natural and social factors. - Other factors. 1.6. International experiences in commercial development towards modern civilization 1.6.1. Experiences of some international capitals in trade development towards modern civilization 1.6.1.1. Lesson learnt from Beijing – China Encouraging and applying supportive policies to promote the development of various civilized and modern trade organizations; Renovating and modernizing malls and traditional commercial infrastructures; Planning and developing modern commercial infrastructures, especially focusing on supermarkets, hypermarkets, shopping malls; Standardizing technical standards on distribution, commodity circulation; Expanding the application and use of advanced technology, equipment in commercial facilities construction, business, operation and exploitation. Encourage businesses to modernize information systems and apply e-commerce; Improving the quality of staff, encouraging M&A, forming large supermarkets; Restricting supermarket investments in urban because of saturation, encouraging investment in areas that have not or not yet developed. Establishing "Association of Chinese chain stores and franchise. 1.6.1.2. Lesson learnt from Bangkok – Thailand Foreign distributors can only open each individual supermarket; Promulgating regulations on fair trade for supermarkets and retail sectors in the city. Establishing the Union of domestic retail to compete with foreign supermarkets; Modernize retail. Mainstreaming promotion of modern trading system with national tourism promotion 1.6.1.3. Lesson learnt from Kuala Lumpur – Malaysia Encouraging the development of trade centers and supermarkets in major cities and regulating that commercial centers and supermarkets must be consistent with the overall construction planning for each region, with no adverse effect on small and medium businesses or traditional markets. the commercial centers and supermarkets with an area over 6000 m2 are not allowed to be built in urban centers. 1.6.2. Some lesson learnt for Hanoi - The determination of planning and permitting construction of various civilization and modern commercial organizations need to be codified into laws, legislations. - Good, flexible and creative management for development planning of various civilized and modern trade organizations. The shortcomings and delays in building and implementing commercial development planning may cause excessive opening. - Policies to encourage state support of the State and local authorities for domestic trade development focus on two target groups: to protect small businesses, encourage joint ventures to form large distribution conglomerates. - Synchronously using solutions in supporting and managing commercial development of civilization and modernity. - Diversifying resources for commercial development of civilization and modernity. - Attach importance to e-commerce development. CHAPTER 2 COMMERCIAL DEVELOPMENT SITUATION OF HANOI TOWARDS MORDERN CIVILIZATION DURING PERIOD 2008-2013 2.1. Overview of Hanoi economical and commercial development situation The Hanoi capital has an area of 3,328.89 km2. In 2013, the proportion of industry was 41.7%, agriculture was 4.9% and commercial service was 53.4%. The proportion of trade maintained relatively stable within 11.18% - 11.25% of Hanoi’s GRDP. Calculated by current prices, the trade sector contributed 50,442 billions Vietnamese dong in 2013. Hanoi trade sector’s added value reached an average increase of 20.31%/year during the period 2008-2013. Total domestic commercial products in 2013 increased 2.5 times compared to that of 2008. Hanoi commerce sector’s turnover reached 1,290,000 billions Vietnamese dong in 2013. Continuous and high growth on Hanoi’s circulation of goods and services in the last few years shows that commercial activities in the city have gained good development, ensuring the circulation of goods to meeting the demand of producers and consumers, towards civilization and modernity. 2.2. Commercial development situations of Hanoi towards mordern civilization during period 2008 - 2013 2.2.1. Network organization, technology level of retail commerce in Hanoi 2.2.1.1. Traditional commercial systems: a. Market system: By 31st Dec. 2013, Hanoi had 418 markets with 1,699,377 m2 area, including: 13 markets of Grade 1; 68 markets of Grade 2; 309 markets of Grade 3 and 28 ungraded markets; On average, each district or town has 14 markets, each market serves about 17,224 people. Overall, the number of markets have not yet met business needs of the sellers and goods procurement needs of the byers. It only meets the basic demands of daily necessities. However, by 31st Dec. 2013, 187 temporary markets still remained all over the city. People's Committees of districts had plans to release these markets but clearance works and post-clearance maintenance are difficult. b. The individual businesses systems (households’s retail stores): In 2013, there were 145,886 individual business in Hanoi. c. The warehouse systems: There were 7 bonded warehouses and 234 large warehouses (area of more than 500m2) in Hanoi. d. Petrol and gas business systems: There were 661 liquefied petroleum gas (LPG) stations and 483 gasoline retail stores. 2.2.1.2. The system of modern commercial facilities: a. Supermakets: By 31st Dec. 2013, there were 137 supermarkets, including 98 general supermarkets, 39 specialized supermarkets in Hanoi (electronics and home appliances: 19; Fashion: 5; Other specialized: 15), accounting for about 19% of the country's supermarkets. On average, each district had about 5 supermarkets. Of all graded 101 stores, there were 18 supermarkets of grade I, 35 supermarkets of grade II, 50 supermarkets of grade III and 34 ungraded supermarkets. The distribution of supermarkets among districts across the city is uneven, mainly concentrated in the urban area. The districts had 116 supermarkets, districts and towns had 21 supermarkets. b. Shopping mall system: There are 26 shopping malls in Hanoi, making about 15% of the country. Shopping malls are classified by investment, including: Private capital and others: 20; Direct foreign investment: 6; State capital: 0. There are 22 shopping malls in urban districts and 4 shopping malls in rural districts. c. Convenience store systems: There are 1,060 convenience stores in Hanoi, including convenience stores under retail chains independent convenience stores. They are concentrated mainly in the urban districts. d. System of department stores, specialized and cheap selling shops: There are 770 department stores in Hanoi. In addition, the number of specialized stores, cheap selling shops are still limited and scattered. They are listed in the area of individual business households by Hanoi Statistical Office and Department of Trade and Industry. e. Ecommerce Situation The city has 136,901 units with e-commerce transactions, of which 21,904 units operating in the field of wholesale and retail. Up to 20.6% of the city businessese has introduction websites. Hanoi has more than 82.149 million subscribers, including 2.601 million post-paid mobile phone subscribers; and 3,255,000 internet subscribers. For 136,901 units with e-commerce transactions in the area, on average, 33% of sales of the businessese is from online placed orders and businesses also spend 28% of the cost to purchase through this channels. f. Situation of and transport and logicstics facilities of commercial support By 2013, the volume of goods transported in the city was 569,023,000 tons; volume of goods transported in the city was 47,752 million tons.kilometers. Currently, the infrastructure of logistics services in Hanoi is still poor, small-scale, layout unreasonable. The quality of this system is not even, some places have not met technical requirements. The activities are spontaneous, petty and not linked to chain of retail supply services. 2.2.2. Current situation of the organizational structure and human for retail commerce management 2.2.2.1. Human resources and basis systems of commercial enterprises: In 2013, there were 57,778 commercial enterprises in Hanoi. Of these, 311 SOEs, 56,485 non-state enterprises and 982 foreign investment enterprises. Labor in commercial enterprises reached 411,855 people in 2013. In the 2008-2013 period, employees in business enterprises accounted for a large proportion, approximately 51-58% of the total labor commerce in Hanoi. 2.2.2.2. Human resources and and basis systems of commercial enterprises and individual services: By the end of 2013, there were 145,886 individual businesses mainly non-specialized retail households. In 2013, commercial labors and individual services in Hanoi reached 372,548 people. 2.3. Current situation of state management of Hanoi commercial development towards civilization and modern 2.3.1. Current situation of guidelines, mechanisms and policies for development and management of Hanoi commerce towards civilization and modern Implementing the policies and laws of the State in recent years, the City has been actively issuing and implementing many policies and mechanisms for economical and commercial development. These activities achieved remarkable results. It also has actively promoted international economic integration and the implementation of international commitments, extensive renewal in both quality and vision in planning policies and institutional development. It studied and removed the unnecessary licenses, reduced administrative procedures. 2.3.2. Current situation of mechanisms and policies deployment to promote commercial development in Hanoi towards civilization and modern. The City has actively implemented urgent measures to prevent deterioration, maintain economic growth and ensure social security and support trade promotion. Administrative procedure reform are conducted synchronously in the departments and districts. Organizational apparatus of State management for private commercial sector in Hanoi is carried out in compliance with the guidelines of the management mechanism innovation. The City has also actively supported ground and invested in the commercial development projects. It has implemented many preferential policies, supported commericial investment enterprises. Besides this, the City focuse on tax consulting and inspection and test. It also supported commercial enterprises through targeted programs: The emulation and reward; honor for the outstanding enterprises and institutions of professional associations. 2.4. General assessment the situation of Hanoi commercial development towards civilization and modern Hanoi Trade has developed fairly powerful in recent years, making it become a huge business center of the country and a trade exchange hub domestically and internationally. * The achieved results: The legal regime is increasingly improved. Commercial activities in the city increasingly meets the development criteria towards civilization and modern. * The existences: Legal system for civilized and modern trade has not caught up with the development of the economy and integration process. The type of business towards civilization, modernization has not met the expectations of the capital residents. Most of the business establishments are small and can not meet the prescribed technical standards. Good’s categories, quality and civilized, modern commercial services have not met the service using requirements of capital residents. Business management methods of the majority of the stores are still traditional and bearing the stamp of a small and professiona retail trade,not accordance with the international standards. Civilized and modern commercial resources are still inadequate. The implementations of planning of civilized and modern commercial organizations are slow and unequal. 2.4.2.2. Causes of existences: a) Causes of the State: First, common thought, conscience and view of the position and role of commercial activities in the country for the national economy are not profound and inadequate. Secondly, state management of market and commerce have not been respected. Third, the level of economic development is low, trade was mainly small business, with low productivity, quality and service efficiency. Fourth, the mechanisms of capital access, land for businesses to develop a civilized and modern trade are very limited. Administrative procedures are still troubling, time-consuming and losing business opportunities. b) Causes of the commercial business entities: Firstly, businesses and producers is in lack of knowledge, experience and hard to change habits in their business, making the modern business underdeveloped and inefficient. Second, the major causes stunting the development of civilized and modern business’s infrastructure systems is that the development of current business sector has not created a powerful growth of commercial transaction demands. CHAPTER 3 ORIENTATION AND SOLUTIONS FOR HANOI TRADE DEVELOPMENT TOWARDS MODERN CIVILIZATION TO 2020, VISION 2030 3.1. Domestic and international context In the coming time, according to world forecast, the region will have rapid and complicated changes. Beside the advantages and difficulties, peace and cooperation, new challenges will be appeared. That is the context that Vietnam has been deeply and extensively integrated into the world economy with the positive acceleration to improve a market economy, the establishment of ASEAN Economic Community (AEC) in 2015, the full opening of retail market in 2015, according to the commitments signed when joining the WTO, together with the implementation of multilateral and other bilateral commitments in TPP agreement signed with the countries... However, the trend of international economic integration continues to promote the Hanoi and Vietnam trade development. As forecasted, Hanoi will increasingly develop. The economic growth rate during period 2016 - 2020 will be about 8.5 to 9%. GDP per capita will be $ 3,600 in 2015; 2020: above $ 5,500; 2030: about $ 11,000. Population size in 2015 is 7.2 to 7.4 million peoples, 2020: from 7.9 to 8 million peoples; 2030: about 9.4 million peoples. The percentage of urbanization: 2015 reaches 46-47%, by 2020: 54-55%. 3.2. Development views and objectives, directions of Hanoi trade towards civilization and modern 3.2.1. Views: First, Hanoi commercial development accordance with the Capital overall planning of economic and social development and master plan of Hanoi trade development. Second, synchronous development of modern business associated with upgrading the quality of the traditional trade, in accordance with local conditions and market principles, international integration commitments. Third, encouraging socialization of investment together with strengthening state management in commercial development towards civilization and modern. Fourth, Hanoi trade development towards civilization, modernization and trade cooperation and with local authorities in the region and nationwide. 3.2.2. Objectives: Hanoi should focus on building the network of various civilized, modern trade organizations in Hanoi for agile development, rational structure, with the participation of all economic sectors and types of organizations, operating in a competitive environment with the management and macro-regulation of the State. By 2020, the network of various civilized, modern trade organizations in Hanoi will become the main sales channel in the market of the city; cargo traffic speed is accelerated; price and quality of goods circulated through the system is stable; sales services rendered increasingly diverse, quality and contribute actively to the implementation of the task of protecting and improving the environment; the level of development of retail market are markedly improved, contributing to improving the urban civilized lifestyle, standard of living and quality of life of people of the capital, Hanoi build a major commercial center of the country , have positions in the region. 3.2.3. Orientations - Diverse development of the commercial business sectors. - Developing business types must ensure balance between traditional and modern trade, increasing the proportion of sales through networks of trade towards civilization, modern in total retail sales. - Commercial network planning must be feasible and effective. - Strengthening the capacity and effectiveness of the management of the commercial network of the City. - Supporting Hanoi business association to operate efficiently. 3.3. Solutions for Hanoi commercial development towards civilization and modern to 2020, Vision 2030 3.3.1. Enhance and unity the awareness. direct the Hanoi commercial development toward civilization and modernity. All functional levels and departments should continue to innovate their awareness of Hanoi commercial development towards civilization and modernity with more breakthroughs. They will propose and implement effectively the encouragement mechanisms, policies enable them to attract more resources for development of civilized and modern commercial organization. 3.3.2. Finalizing the plan and creating land funds for commercial development towards civilization and modernity Strengthening the legal and enforceability validity of the schemes on commercial, wholesale and retail network development planning in Hanoi. In the process of economic and social development planning direction, Hanoi People's Committees have to set aside land for of civilized and modern business’s infrastructure development investment. 3.3.3. Encourage investment in building infrastructure for trade towards civilization and modern Supplementing policy to encourage all domestic and foreign economic sectors to participate in trade infrastructure development towards civilization and modern. Renovate and upgrade traditional market system. Overview, arrange and restructure old quarters, commercial streets, ensuring modern requirements with the cultural identity of traditional business. The City applies pilot mechanisms for investment in new construction of modern commercial streets. 3.3.4. Firmly removing temporary markets and strengthening market management Firmly getting rid of temporary markets, contributing to the operation of the major market by reducing the competitive element of surrounding temporary markets. Especially, removing spots located on highways, sidewalks, roadways. Continuing to promote the fight against smuggling and counterfeiting, substandard goods and commercial frauds. 3.3.5. Synchronization of e-commerce conditions and capabilities: The authorities should urgently adjust some existing policies relating to the development of e-commerce; providing online public services; supporting the development of human resources; supporting research and transfer of technology; increasing investment in electronic commerce. 3.3.6. Development of human resources for civilized and modern trade: Improve the capacity of the enterprise administrators in order to gradually strengthen the competitiveness of commercial enterprises. Cities and businesses should be encouraged to attract domestic and foreign business executives with high levels into the trade sector. 3.3.8. Encouraging trade associations to actively restructure and develop towards civilization and modern: The

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