Hanoi’s market development inadequacies

10:17 | 06/12/2016 Economy- Society

(VEN) - Hanoi has transformed a number of major traditional markets in the downtown, including Hang Da, Cua Nam, Mo and others, into compound projects comprising of trade centers and offices for lease. But, the reality shows that this transformation was a failure.  

Hanoians still love traditional markets

Compound model is not a solution

Tran Minh Tu, Deputy Head of the Hanoi Department of Industry and Trade’s Trade Management Office said that the city got businesses and cooperatives to invest in turning major traditional markets into compound projects (including trade center and office-for-lease services). These projects have been put into operation for years but shown modest efficiency. Hang Da, Cua Nam and O Cho Dua trade centers are strong evidences of this.

Tu attributed the problem to inappropriate market design and considerably higher store lease rates. Project investors are now project managers, who can decide the lease rates. People’s shopping habits were not taken into account when compound trade centers were designed and built. This, in addition to the projects’ management weaknesses, decreased the number of merchants in the projects. Dong Xuan and Ha Dong markets - transformation projects managed by the state prove to be efficient and attractive to merchants.

Nguyen Ngoc Vinh - Deputy Head of the Economic Department of the Long Bien District People’s Committee said that no more compound trade center should be constructed, and that the city should construct separate projects - traditional markets and trade centers. Each ward should have at least one traditional market, he added.

Bac Tu Liem District People’s Committee Deputy Chairwoman Nguyen Thi Nang Mai said that traditional markets will play a crucial role in urban areas in the next 30-50 years.

Revolution needed

According to experts, in the next 10-15 years, traditional markets will still be popular. However, Hanoi needs to develop traditional markets on an appropriate basis and in compliance with the city’s socioeconomic development plan.

Dr., Architect Dao Ngoc Nghiem - former Director of the Hanoi Department of Planning and Architecture said that Hanoi should choose appropriate market models based on the urban structure of specific areas.

At a seminar entitled “Traditional markets in downtown Hanoi”, many agreed that no matter it is a traditional market or a market of another kind, goods disposure should be professional, the origin of goods should be clear, and commodities must satisfy safety and hygiene standards, and the market’s activities in general should be implemented in a professional and modern manner.

Experts recommend Hanoi to have a revolution to restructure and improve its market system in accordance with the city’s population size and consumer demands and tastes.

Hanoi currently has about 500 markets. According to the city’s retail system development plan until 2020, with a vision to 2030, Hanoi will develop 595 traditional markets, upgrade 381 markets, build 213 new markets and clear 14 markets.

According to experts, market development should observe the following principles: Appropriate design, transparency, ensuring the benefit of the poor, keeping lease rates reasonable, and balancing interests of investors and traders.

Thanh Ha