Govt sees bright year for rural trade
Ha Noi (March 11, 2003) — No stone will be left unturned to boost retail trade and services while there will be a strong new focus on rural markets in 2003, according to a Ministry of Trade report.
Identifying a growth target of 13 per cent for retail trade and services and 5 per cent for the consumption index, the ministry seeks the fulfilment of domestic demand for both raw materials and manufactured goods. It also hopes to assist farmers in selling all their produce.
And to achieve the targets, the report calls for expanding the distribution network, including wholesale markets and agents in some cases, especially in rural areas. This would also help achieve the Government policy of encouraging processing factories to sign contracts with farmers for their produce.
It calls on State-run enterprises to assume the mantle of pioneer in setting up trading in the smallest hamlets, showing the way for other businesses.
Last year, retail and service turnover grew 12.8 per cent, the fastest growth in the last five years. With a growth of 12 per cent in purchasing power, the countryside emerged as a market of promise.
The fairy successful application of the Enterprise Law and the simplification of administrative procedures have helped notch up increasing domestic investment, the ministry said. Home-made products have become more competitive, thanks to improvement in quality, lower prices and new designs, it said.
Pointing out the increasing supply of goods and services, it said the country’s ability to meet demand has helped rid of shortages even during the big holidays – when people go on buying sprees – and during or after natural disasters.
However, the report said, it remained essential to reform trade and service co-operatives, converting them into joint-stock companies that both buy farm produce and sell agricultural inputs and home appliances.
Along with the co-operatives, individuals and household traders also ought be encouraged to participate in the process of widening the distribution network, helping enterprises source raw materials and sign contracts with farmers.
The ministry pledged incentives like loans, investment and bonuses to encourage both enterprises and farmers to enter into contracts. It will also allow enterprises that have signed such contracts to take part in Government export schemes.
Processing enterprises will be encouraged to invest in agriculture, and in a role reversal, farmers in such businesses.
The report said that rice and sugarcane farmers have been most successful in signing such deals. Around 20 enterprises have entered into contracts for nearly 169,000ha of high-quality paddy in the Cuu Long (Mekong) Delta, while 185,000 ha of sugarcane crop have been contracted to feed enterprises in central and northern regions.
The ministry’s report also emphasised the need to mobilise investment from the State, corporates and individuals to develop a market system, which plays a vital role in the distribution of goods.
Hundreds of markets have been constructed and graded last year across the country, while Western-style supermarkets have sprung up in 21 cities and provinces.
According to the ministry, priority should be given to the construction of village, inter-village and town markets for wholesale trade, where farmers can sell agricultural goods and buy inputs for farming and other daily necessities.
The report stressed the need to set up an information network connecting the ministry with provincial departments and enterprises. Importantly, it said, provinces should set up information stations at wholesale markets and other economic centres. — VNS
