Inefficient, tardy development of rural trade infrastructure

10:05 | 21/05/2019 Economy- Society

(VEN) - A report by the Ministry of Industry and Trade shows that 6,302 or 70.67 percent of the 8,918 communes nationwide have met the government’s rural trade infrastructure standard. However, the development of rural markets is slower than expected, according to the report.  

inefficient tardy development of rural trade infrastructure
Rural market development remains tardy and has low investment efficiency

The rate of communes satisfying the standard is 87.94 percent in the Red River Delta, 82.52 percent in the southeastern region, and 100 percent in the cities of Hai Phong, Da Nang, Ho Chi Minh and Can Tho, and Hai Duong and Nam Dinh provinces.

According to the Ministry of Industry and Trade, investment in the development of rural markets remains less efficient and as a result, they have attracted little capital. The development is also hindered by other problems including the lack of state funding and land.

The ministry has set a target of having 6,900 or 77.37 percent of all communes in Vietnam meet the standard in 2019, an increase of 6.7 percent over 2018. In an attempt to achieve the target, the ministry will strengthen and combine its programs and plans for industry and trade promotion, giving priority to areas with difficult socioeconomic conditions and ethnic minority areas, aimed at improving rural people’s incomes, reducing poverty and promoting economic restructuring in rural areas.

The Ministry of Industry and Trade has proposed that the Ministry of Finance evaluate the asset value of existing markets, which were built with state capital upon their transformation into commercial cooperatives. The ministry has also proposed that the Ministry of Home Affairs provide guidelines for implementation of policies for state officials, who are members of rural market management units (referring to markets that have been transformed into commercial cooperatives or businesses).

The Ministry of Industry and Trade has instructed people's committees of provinces and cities to allocate state capital for market development in compliance with conditions in specific rural areas. It also instructed departments and agencies to work closely with departments of industry and trade in market development and management, especially in asset evaluation related to the transformation of market management models.

The Ministry of Industry and Trade has set a target of having 6,900 or 77.37 percent of all communes in Vietnam meet the rural trade infrastructure standard in 2019, an increase of 6.7 percent over 2018.

Thanh Ha