Strengthening waste prevention, removing bottlenecks in mechanisms and policies, and unblocking resources will create breakthrough development in the domestic trade sector.
Positive changes in domestic trade development
According to the Department Domestic market - Ministry of Industry and Trade, Vietnam has completed the final year of implementing the Socio-Economic Development Strategy for the period 2011-2020 with many important achievements. The macro-economy is more stable, the major balances of the economy are ensured and significantly improved, especially in the final years of the period. Looking back at the development process of the domestic trade sector from 2020 to now, we can see both remarkable successes and shortcomings that need to be overcome.
Domestic trade activities in the recent period have achieved significant progress, demonstrating their leading role in production development, improving people's economic life, and increasing purchasing power and market size. Domestic market has maintained stable growth, smooth circulation of goods, better meeting the diverse and constantly increasing consumption needs of production and social life.
Specifically, the first, Domestic trade maintained stable growth, contributed significantly to GDP growth (accounting for over 10% annually), created jobs (6-7 million workers, equivalent to 12% of total social labor) and ensured social security, becoming an important pillar of economic development;
Monday, The domestic market has changed positively in the direction of increasing openness, the business environment has improved, moving towards increasing competition, attracting foreign investors to participate in the market, many modern and civilized forms of distribution have appeared, creating good spillover effects, improving the business model and productivity of domestic enterprises;
Tuesday, Besides opening the distribution service market to attract foreign investment, from internal strength, domestic trade has gradually developed and modernized, diversifying distribution systems;
Wednesday, The market structure is increasingly modern, market participants are diverse, the chain distribution system has been gradually formed; the links between enterprises are built, consolidated, and operated in accordance with the market economy;
Thursday, has developed domestic distribution brands capable of competing with foreign brands, built Vietnamese branded products and pure Vietnamese product distribution chains;
Friday, It is noteworthy that domestic commercial activities have been gradually modernized with the strong shift of e-commerce with the support of cashless payment methods and the development of smartphone systems;
Saturday, Commercial infrastructure develops rapidly, both in urban and rural areas, remote areas, mountainous areas, islands and even areas with difficult conditions, with a strong shift from traditional commercial systems (such as markets) to modern commercial infrastructure systems (supermarkets and shopping centers), gradually creating a smooth distribution channel in a modern, civilized direction;
Eighth, The quality of human resources for domestic trade has improved, income has increased strongly, and state budget revenue from trade activities has increased;
Ninth, State management of domestic trade has been gradually strengthened and improved, and legal documents to regulate the market have been promptly issued. The work of regulating supply and demand and stabilizing the market has been and is being innovated appropriately.
What are the barriers?
In addition to the achievements, domestic trade has developed in recent times but not commensurate with its potential, growth is still in breadth, mainly increasing in revenue scale. In the process of goods circulation, there are still many intermediate stages and steps, high costs of goods circulation make the added value in trade still low, leading to low growth quality.
Although supply and demand of goods are guaranteed, they still lack sustainability, the chain linkage is still loose and slow to develop. The number of large-scale domestic trading enterprises with modern business models and advanced business methods... is still small.
At the same time, commercial infrastructure (markets, supermarkets, shopping malls, convenience stores, specialty stores, etc.) in some localities has not developed evenly and is not sustainable, mainly concentrated in urban areas. In rural and mountainous areas, the market network is sparse, technical facilities are rudimentary and outdated, supermarkets and shopping malls are few, etc.
Modern and highly integrated business methods such as e-commerce, digital transactions, online shopping... although being organized and managed, still contain many potential risks of insecurity, loss of information and data, and technological level has not kept up with development requirements. Although the work of ensuring market order has been strengthened, in some places there are still counterfeit goods, poor quality goods, and food safety violations.
The reason for this situation, according to the Domestic Market Department, is that the general view and awareness of the position and role of domestic trade activities in the economy is not complete and profound. The role of domestic trade in the economy has not been properly assessed when formulating development policies as well as the process of managing economic sectors. There is still a notion that trade is only an intermediary stage, does not create goods, and therefore does not need to be encouraged or given incentives, affecting the thinking and actions of many levels of management, hindering the development of domestic trade.
In addition, the policy framework directly regulating or related to commercial activities in the market mechanism has not been amended or completed to suit new trends and circumstances, and to be consistent with other specialized laws such as the Enterprise Law, Investment Law, Competition Law, Civil Law, etc. that have been amended. Most of the regulations and policies for domestic trade development, especially those related to trade infrastructure development, are encouraging and directional in nature but have no mandatory enforcement value and lack resources for implementation. State management of trade, considered as a whole from planning, plans, development policies to business organization and management, is fragmented, limiting the effectiveness of state management and wasting resources.
Regarding objective reasons, our country's production capacity has a low starting point, basically still small-scale, dispersed production, trade costs, and legal compliance costs in trade are still high. The world political and economic situation has many unpredictable fluctuations, geopolitical conflicts in regions and domestic production and trade protectionism appear more and more and tend to increase. Natural disasters, epidemics, and extreme changes in climate over the past years with an increasing trend have had a serious impact on domestic economic and commercial activities. Crop failures and losses in farming and production due to storms, floods, and droughts have caused damage to businesses, farmers, and businesses supplying goods to the market.
Finding solutions for sustainable domestic trade development
Vietnam is preparing to enter a new development phase in which the international and domestic situation is forecast to continue to be complex and unpredictable with favorable opportunities and difficulties, challenges intertwined, the world economic and political situation has many complex changes, conflicts between major economies in economic, trade, defense and security issues are taking place in many different directions. Therefore, overcoming bottlenecks, improving the macroeconomic environment, taking advantage of opportunities to create new growth drivers, new breakthroughs for the domestic trade sector to accelerate and develop in the coming years has a particularly important meaning and role.
The Domestic Market Department informed that in the coming time, it is necessary to focus on the following groups of tasks and solutions:
Strengthening education and awareness on waste prevention and control in management and business activities in the domestic trade sector: promoting propaganda on waste prevention and control, raising awareness of saving social resources for all subjects including state management agencies, enterprises and people, and entities participating in business in the domestic trade sector.
Review and synchronize policies on domestic trade development: review and eliminate overlapping regulations, perfect mechanisms and policies. In particular, focus on amending, supplementing and perfecting the legal framework and legal norms directly regulating domestic trade activities in a synchronous and compatible manner with other specialized laws and legal norms that have been amended, while simplifying administrative procedures, creating more favorable conditions for the investment and business environment.
Promote the development of domestic trade infrastructure: improve the efficiency of attracting investment from all economic sectors in society, with special attention to promoting public-private partnership.
Developing human resources working in the domestic trade sector: strengthening training of highly qualified human resources in management, business and technology application, coupled with specialized vocational training for industry workers, creating proactive human resources suitable for the industry in the new context.
Promote the application of technology in the domestic commercial sector: encourage digital transformation, develop digital technology application platforms to increase efficiency, save costs in business operations, management and exploitation of resources.
Perfecting and effectively implementing the monitoring mechanism: reviewing and perfecting appropriate and effective monitoring mechanisms for the use of resources including natural resources, finance and labor for the domestic trade sector.
In the new era, the domestic trade sector is facing challenges but also opening up many opportunities. Preventing waste, removing bottlenecks and unlocking resources are not only the foundation for sustainable development, but also mark a breakthrough transformation of the national economy.
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