Inadequacies in retail infrastructure development

In recent years, the construction and development of commercial infrastructure in general in the province has made "leaps and bounds" in development. Thanh Hoa has been and is on the way to becoming a dynamic trading hub, meeting the production and living needs of people in the province and neighboring areas. However, attracting investment and developing service and commercial infrastructure for a number of market systems, supermarkets, trade centers (TTTM), and specialized retail stores in the province still have shortcomings.

Inadequacies in retail infrastructure development People shop at Mien Tay Supermarket, Yen Cat town (Nhu Xuan).

As of early June 2023, there were 398 markets in operation in the province, an increase of 7 markets compared to 2022, including 10 grade 1 markets, 34 grade 2 markets and 354 grade 3 markets. Currently, there are 86 markets invested in, built, operated and managed by enterprises and cooperatives, ensuring regular self-spending; 312 markets are invested with budget capital, currently being contracted to organizations and individuals for operation. There are 2 shopping malls and 30 supermarkets; of which, there are 13 general supermarkets and 17 supermarkets specializing in items such as shoes, electronics, wooden furniture, etc. The supermarket system has initially operated effectively, people have formed the habit of shopping at supermarkets. The development of services and trade has created favorable conditions for the circulation and consumption of goods in the area. The market for goods and services is relatively stable, people's purchasing power increases, prices are stable, goods are abundant, supply is diverse, well meeting all production and consumption needs of the people.

Despite the rapid development, the retail trade infrastructure in the province is still not synchronous. The most obvious shortcoming is that the market system and shopping malls are mainly concentrated in urban areas, city centers, towns, and commune centers; in rural and mountainous areas, the market network is still sparse. Although the commercial infrastructure, especially the market network, has developed, the quantity and quality are still limited, not meeting the criteria for markets in the National Criteria for New Rural Areas. Some markets in rural areas are now degraded, not ensuring food hygiene and safety; the technical facilities of most markets are still poor, rudimentary and are still in the process of consolidation and upgrading step by step. In addition, the State budget for investment in market construction, as well as calling for socialized capital, also faces many difficulties, especially in rural and mountainous areas where people's income and purchasing power are not high, so it is difficult to attract investment without appropriate and attractive policies... The implementation of the policy of converting the management, business and exploitation model of the market is also uneven. According to information from the Department of Economic Infrastructure, People's Committee of Nhu Xuan district: For commune markets, attracting investment projects is really difficult due to the long capital recovery roadmap. Currently, market investment is supported with land rent according to Resolution No. 29/2016/NQ-HDND dated December 8, 2016 of the Provincial People's Council, which still has certain difficulties for investors because the land rent policy is only supported annually. Therefore, investors are afraid of policy changes when investing large amounts of capital in the market. Besides the difficulties in attracting investment, the effective operation of the market after conversion also requires the drastic participation of authorities at all levels.

In addition, the implementation of Resolution No. 29/2016/NQ-HDND dated December 8, 2016 on supermarket construction also has shortcomings. "Golden" land locations are often "prioritized" for selection, but some projects are invested in very "half-heartedly" or "suspended" for a long time. Typically, the Bo Ho Commercial Center project is located in a prime location, but after many times going through the hands of investors, changing many architectural plans, it still has not had the "shape" of the highlight as expected. Or some commercial projects such as: Melinh Plaza Commercial Complex, Eden Commercial Complex... after many years of investment policy approval, the investment progress is very slow.

Therefore, in order to develop and complete the retail trade infrastructure system in the province in a synchronous and modern direction, meeting the needs of socio-economic development, in the coming time, the Department of Industry and Trade will advise the Provincial People's Committee to create favorable conditions for economic sectors to participate in developing trade activities; encourage modern business types such as: shopping malls, convenience store chains, online sales, vending machines... Training to improve the quality of human resources; perfecting wholesale and retail trade infrastructure suitable for each locality; increasing support for preferential loans, market linkages and trade promotion; mobilizing investment resources, gradually perfecting trade infrastructure in a civilized and modern direction. At the same time, building specific mechanisms and policies that are attractive enough to encourage and attract investment in trade infrastructure, especially in mountainous and rural areas. Focus on promoting production development, increasing income, combined with propaganda, raising awareness, changing shopping habits for rural people. Develop common operating regulations for the market system; improve the quality of investment and construction. Resolutely eliminate illegal markets that do not ensure business conditions as well as food safety and hygiene.

Article and photos: Chi Pham

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