THE PRIME MINISTER OF GOVERNMENT
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No: 27/2007/QD-TTg
Hanoi, February 15, 2007
 
DECISION
APPROVING THE SCHEME ON DOMESTIC TRADE DEVELOPMENT UP TO 2010 AND ORIENTATIONS TOWARD 2020
PRIME MINISTER
Pursuant to the December 25, 2001 Law on Organization of the Government;
At the proposal of the Trade Minister,
DECIDES:
Article 1.- To approve the Scheme on domestic trade development up to 2010 and orientations toward 2020 with the following principle contents:
I. DEVELOPMENT VIEWPOINT
1. To develop domestic trade in accordance with the objective rules of the market economy, ensuring the right to autonomy, freedom of business and equal competition among entities in an ever-improving legal environment under the State's macro-regulation.
2. To combine the domestic trade development with the development of diversified forms of ownership, economic sectors, organizational types and operation modes of trade entities. To pay attention to developing small- and medium-sized enterprises, business households while promoting the development of large trade enterprises after the model of conglomerates having modern distribution systems and playing the core role in setting market trends, for the purpose of orientating production and consumption.
3. To develop commodity trade closely linked with investment, production and trade in services according to the roadmap of our international commitments; at the same time, to take the initiative in meeting the market's and local consumers' more and more diversified demands.
4. To develop domestic trade on the basis of mobilizing to the utmost all social resources; to attach importance to boosting enterprises' capability to accumulate and muster up resources for investing in the development of trade infrastructure and expanding their business networks.
II. DEVELOPMENT OBJECTIVES
1. General objectives:
To build a firmly developed and modern domestic trade with a reasonable structure of distribution systems and channels involving all economic sectors and various types of organization and operating in a competitive environment under the State's macro-management and regulation. To attach importance to developing small-sized enterprises and business households; at the same time, to encourage and promote the formation of large-sized enterprises throughout the course of accumulation and concentration, with a view to establishing big distributors of Vietnamese brands. To open the distribution market in strict accordance with the roadmap of World Trade Organization (WTO) accession commitments. To establish linkages between large-sized and small-sized enterprises in organizing markets, thus gathering strengths for effective cooperation and competition with foreign conglomerates after Vietnam opens its distribution service market. On this basis, to promote the role and position of domestic trade in orientating and boosting production development, guiding and satisfying increasingly diversified consumption demands of the people, thus contributing to developing export and stepping up economic restructuring and growth.
2. Specific objectives:
a/ Growth targets:
- Contributions of domestic trade to the national economy's GDP will reach VND 200 trillion by 2010 (accounting for 14.5%), and VND 450 trillion by 2020 (around 15%);
- The annual growth rate (exclusive of price fluctuation) of total goods retail sales and consumption service turnover in the period from now to 2010 will be 11% on average, and over 10% in the subsequent periods. The total goods retail sales and consumption service turnover will reach around VND 800 trillion by 2010 and around VND 2,000 trillion by 2020;
- The proportions of goods retail sales by economic sectors by 2010 will be as follows: The domestic economic sectors (including the state economic sector and the non-state economic sector) will account from some 93%, while the foreign-invested sector will account for 7%. By 2020, these proportions will be 80% and 20% respectively.
- The proportions of goods retail sales by modern trade types (trade centers, department stores, chains of convenience stores, etc.) will be 20% (around VND 160 trillion) by 2010 and 40% (around VND 800 trillion) by 2020;
b/ To modernize trade infrastructure; to attach importance to constructing and developing the system of modern trade infrastructure (trade centers, department stores, shopping centers, trade ' service areas, convenience stores, specialized shops, logistics centers, wholesale storehouses, trade fair and exhibition centers, etc.) in urban centers, industrial parks, economic zones, export processing zones, border-gate economic zones; to basically complete the program on development of various types of market (marketplaces for people's daily-life needs in rural, deep-lying, remote and border areas, islands, and central markets, markets for particular commodities, wholesale markets in consolidated farm produce production areas and big consumption markets);
c/ To develop other diversified types and modes of modern trade business, such as: goods exchanges, auction centers, franchise, e-commerce, etc.;
d/ To form and develop a number of strong commercial groups trading in specialized or general goods, capable of competing and having sufficient conditions for efficient cooperation with foreign distribution groups after Vietnam opens its distribution service market;
e/ To develop the trade sector's human resources who have modern and professional knowledge, skills and qualifications to meet the development requirements of domestic trade in the context of international economic integration;
f/ To perfect regulations on state management of trade, ensuring healthy and sustainable development of trade activities; to raise the domestic market's adaptability to world market changes.
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