Tóm tắt Luận án Ha Noi trade development towards civilization and modernization until 2020, vision to 2030

1 MINISTRY OF EDUCATION AND TRAINING MINISTRY OF INDUSTRY AND TRADE VIET NAM INSTITUTE FOR TRADE    NGUYEN MINH TAM HA NOI TRADE DEVELOPMENT TOWARDS CIVILIZATION AND MODERNIZATION UNTIL 2020, VISION TO 2030 Major: Commerce Code: 62.34.10.01 SUMMARY OF DOCTORAL THESIS IN ECONOMICS HA NOI - 2015 2 THESIS IMPLEMENTED AT VIETNAM INSTITUTE FOR TRADE    Supervisors: Prof. Dr. Do Duc Binh Dr. Nguyen Minh Phong Reviewer 1: Reviewer 2: Reviewer 3: Thesis is defended at State Council for Thesis Evaluation at Vietnam Institute for Trade - Ministry of Industry and Trade At day month 2015 More details of thesis can be found at: 1/ Library of Vietnam Institute for Trade 2/ National Library 3 1 INTRODUCTION 1. The urgency of the problem, scientific significance and practice of the thesis: Trade development on civilized and modern demand is global trend, meet the globalization and increasingly competitive, intense competition in all economic activities included trade activity. This is also the general orientations of Vietnam commercial development consistent with the overall planning of Hanoi commercial development to 2020, vision 2030. Therefore, the study is in appreciation of the current situation, making the scientific basis and feasible perspectives, solutions to develop Hanoi commercial towards mordern civilization. The implementation of Hanoi industrialization and modernization strategies are not only significant but also long-term important strategy. This is the reason for the study of Ph.D selected topic: "Hanoi Commercial Development Towards Modern Civilization to 2020, vision 2030". 2. The purpose of thesis - Contributing to systematized and clarified more general theoretical basis for commercial development towards civilization and modern. - Research experiences in civilization, modern commercial development in some countries in the region and learn how to develop the Hanoi commercial towards civilization and modern. - Identify, assess correctly and objectively the current situation and State management of Hanoi commercial development towards civilization and modern. - Propose point of views and solutions for commercial development toward civilization and modern in Hanoi. 3. Structure of the thesis In addition to the Preface, Overview, Conclusions and Recommendations, List of published works of authors and references, Annex, thesis is structured into three (03) chapters: 26 LIST OF SCIENTIFIC RESEARCH WORKS PUBLISHED BY AUTHOR 1. Nguyen Minh Tam (2011), "Hanoi trade development towards civilization and modernization”. Trade Journal (Issue No. 22 - 2011), pages 14, 15 and 26. 2. Nguyen Minh Tam (2011), " For development of Hanoi trade towards civilization and modernization", Integration and Development Newsletter, Issue No. 7(55) – July, 2011, page 8 to 14. 3. Nguyen Minh Tam (2014), "Budget issue for implementing Capital trade plans", Economy and Forecast Review, Ministry of Investment and Planning” (Issue No. 19, October 2014), pages 58, 59, 60. 4. Nguyen Minh Tam (2014), "Developing several key service-trade sectors and fields in the Capital area", Vietnam Economic Management Review, Central Institute for Economic Management (Issue No. 62 Aug-Sep, 2014), page 76 to 80. 5. Nguyen Minh Tam (2014), "Status and solution to reinforce stability of essential product prices in Hanoi market", Trade Research Magazine, Vietnam Institute for Trade, Ministry of Trade, (Issue No. 11, October 2014), page 24 to 27. 6. Nguyen Minh Tam (2014), "Economic restructuring in the 2012 – 2014 period: result and prospect", Reporter Magazine, Central Committee for Propaganda and Education (Issue No. 11, November 2014), page 33 to 37. 7. Nguyen Minh Tam (2014), "Status and solution to develop retail trading in Hanoi towards civilization, modernization”, Proceedings of scientific workshop: Developing the retail system in Hanoi Capital in the context of international integration and in preparation of forming ASEAN economic community, held by Hanoi People’s Committee on September 2014, pages183-215. 8. Nguyen Minh Tam – Office of Hanoi City Party Committee (2014), Lessons on price management in the integration period”, Proceedings of national workshop held by Editorial Board of Communist Review, Central Economic Commission and Quang Ninh Provincial Party Committee on December 6th, 2014 in Quang Ninh, page 697-709. 9. Master Nguyen Minh Tam – Office of Hanoi City Party Committee “Reinforcing culture in economic development - Economic Newsletter, issued on Lunar New Year Festival, Jan-Feb, 2015, page 49-52, The organ of Central Economic Commission. 25 2 Chapter 1: Some major theories on commercial development toward modern civilization. Chapter 2: The situation in Hanoi commercial development towards mordern civilization period 2008-2013. Chapter 3: Hanoi commercial development orientations and solutions towards mordern civilization to 2020, vision 2030. 3 CHAPTER 1 SOME MAJOR THEORIES OF COMMERCIAL DEVELOPMENT TOWARDS MODERN CIVILIZATION 1.1. The concept of commercial development towards modern civilization Commercial development toward modern civilization is the commercial development on scale, the structure of trade infrastructure, professionalism, applying organizational and management methods, modern business operation and civilized social interaction, in order to satisfy the needs of shopping, increasing and diversity consumption of our customers for the benefit of consumers in the target market, promoting socioeconomic sustainable development of local and country. Simultaneously, actively perfecting the traditional commercial models both in terms of management and quality improvement activities to meet the required shift to civilization and modernity. 1.2. Distinguishing between traditional, civilization and modern commercial business facilities Traditional and civilization, modern commercial business facilities based are distinguished on six basic criteria: (1) How sort of the size, architectural, decorative, and goods; (2) What is of method or form of sale; (3) Independent sales facilities or department store chain; (4) Belongs to businesses or households ownership; (5) How goods supply?; (6) How professional sales staffs are trained? Within the scope of this thesis refers to the facility of traditional commercial business including: Individual commercial business facilities (business and households); traditional markets; the warehouses; petrol and gas stations, etc. The commercial civilized and modern business establishments including: Supermarkets, shopping malls, convenience stores, department stores, specialized shops, cheap stores, e-commerce, etc. 1.3. Some kinds of civilized and modern commercial business - Supermarkets - Shopping malls - Cheap Stores - Retail store chains 24 in the region and draw lessons for the Hanoi development of trade towards civilization and modern. - Propose the Criteria of civilization and modernity trade to assess each specific trading facility and each district/ town throughout the city meeting the civilization and modern standards. - Identify and evaluate the development situation and state management of Hanoi commercial development towards civilization and modern. - Propose nine groups of solutions and some proposals for Hanoi commercial development towards civilization and modern. Because of limitations in the prescribed study framework, the thesis just mentioned some typical types of business. Simultaneously, the thesis can not have conditions to make specific and detailed requests to respond to each type of business establishments to achieve the civilized and modern criteria. I wish that, with the support from scientists and management agencies, these issues will continue to be gradually studied, improved, finalized and implemented in reality./. 23 CONCLUSIONS Hanoi commercial development towards civilization and modernity is a objective indispensability to meet the increasing demands of consumers and facilitate trade development, promoting the production of goods, shifting economic structure in the right direction and contributing to economic - social development of the capital in the new era. Commercial development towards civilization, modern under the impact of the factors, it should stick to the qualitative and quantitative criteria to approach the trend and the world’s common standards; while matching local and national practices and planning. From international experience, Vietnam reality and capital, it is necessary to synchronously apply solutions, proactively develop of civilization modern commerce in Hanoi in accordance with the master plan on socio-economic development of the Capital to 2020, Vision 2030, the master plan on Hanoi trade development to 2020, Vision 2030; synchronously and harmoniously develop modern commercial types associated with upgrading the quality of the various activities of traditional commercial business, in accordance with local conditions and market principles, access to the world’s trends and comply with international integration commitments; encourage investment socialization and strengthen state management of Hanoi commercial development process towards civilization, modern; cohere and promote links, trade cooperation civilization, modern with local authorities in the region and the country; contribute to the renovation and the construction and development of the capital become more prosperous, civilized and modern. Despite many efforts: - Systematize and clarify the rationale of commercial development towards civilization, modern. - Collect, analyze and clarify factors affecting the development of various types of businesses towards civilization and modern. Study experiences of civilized and modern trade development of some capitals 4 - Department Stores - Specialized Stores - Convenience Stores - Warehouse distribution centers - E-Commerce 5 1.4. Commercial development criteria and contents toward modern civilization 1.4.1. Commercial development contents toward modern civilization First, focus on the development of network structures and diversifying the types of civilized and modern commercial organizations. Second, development of the technical infrastructure and support services for trade towards modern civilization. Third, reorganization, upgrading and modernizing the traditional commercial facility, trading streets. Fourth, the development of human resources for the wholesale and retail network of trade industry to meet the needs of modern civilization. Fifth, improve the capacity, effectiveness and efficiency of State management of commerce. 1.4.2. The necessity of commercial development towards modern civilization First, as a practical new commercial development of in Hanoi. Second, because of the pressure to reform trade policy in the process of international economic integration. Third, the requirement of having in themselves improve their abilities to serve customers of commercial facilities and the requirements to strengthen the capacity and efficiency of state management of trade, which is meeting the demands of management practices. Fourth, due to the requirements of international economic integration. 1.4.3. The criteria for commercial development towards modern civilization in Hanoi 1.4.3.1. Civilized and modern commercial for commercial business facility:: a. A set of civilized and modern commercial including eight (08) criteria: 22 RECOMMENDATIONS I. To the Central Government: 1. Review Decision No 1371/2004/QD-BTM dated 20/9/2004 of the Ministry of Trade (now the Ministry of Industry and Trade) on the Regulation of supermarkets, trade centers. 2. Complete the documents regulating technical barriers and system of quality standards of goods and services; documents relating to the market management. 3. Mainstreaming the promotion of the capital trade system in the program of annual national tourism promotion. II. To Hanoi: 1. To announce and actively implement the development planning of commercial infrastructure in Hanoi to 2020, Vision 2030. 2. To deploy the restructuring plan and improve the Capital economic competitiveness, including the direction to restructure Hanoi business towards civilization, modern. 3. To apply pilot mechanisms for new investment in construction of modern commercial streets and logistics centers. For the immediate future, the City has to focus on successful construction of civilized and modern commercial streets (Noi Bai - Nhat Tan). 4. To consider, consolidate the market management forces. 5. To regularly organize emulation and commendation activities, award the title of "Capital Commercial Civilization", etc. 6. To organize many training and promulgation activities; improve level and awareness of workforce in the capital commercial sector in accordance with civilization and modernity commercial requirements. 7. To promote the Capital commercial activities. Develop information page of civilized and modern e-commerce of the Capital, etc. 8. Hanoi Department of Industry and Trade, Hanoi Police Station Fire have to improve regulations on traditional market management according to increasingly advanced and suitable standards. 21 against smuggling and counterfeiting, substandard goods and commercial frauds. 3.3.5. Synchronization of e-commerce conditions and capabilities: The authorities should urgently adjust some existing policies relating to the development of e-commerce; providing online public services; supporting the development of human resources; supporting research and transfer of technology; increasing investment in electronic commerce. 3.3.6. Development of human resources for civilized and modern trade: Improve the capacity of the enterprise administrators in order to gradually strengthen the competitiveness of commercial enterprises. Cities and businesses should be encouraged to attract domestic and foreign business executives with high levels into the trade sector. 3.3.8. Encouraging trade associations to actively restructure and develop towards civilization and modern: The City should focus on mobilize, encourage, require commercial organizations to actively restructure and develop in accordance with set of criteria for commercial civilization and modernity. 3.3.9. Other solutions The City need to have plans to renovate, reorganize, rearrange and standardize infrastructure. Develop codes of conduct, with other commercial quality and culture requirements for shops, households with commercial operations on the specialized business streets; Support to develop organizations and associations of modern trade business; Continue to effectively implement the campaign "Vietnamese people prioritizing the use of Vietnamese products" ... 6 (1) Planning: Commercial business facilities must be suitable with the city's master plan. (2) Store facilities and infrastructure: Need to meet the standards of the city of location, size, area, overall architecture, facade decoration, sound, lighting, equipment, supporting constructions, logistics, etc. (3) Goods: 100% commodities qualified by the City regarding the origin resources, quality, food safety, packaging, labeling goods, listed price. (4) Sales methods: Qualified by the City on the sales form, means of payment. (5) Method of service: Civilized and polite service qualified under the "Code of Conduct: Hanoian are elegant and civilized". (6) Labour: 90% of officers and business employees of the civilized and modern commercial type; 70% of sales in the business facility in the form of a traditional trade are trained comply with the City standards. (7) Environment: There are no environmentally harmful activities. The development activities are essential with green environment, clean, clear, waste, water usage, are collected and used as regulations. (8) Security at the business establishment are ensured. Commercial facilities observe of the law and should not violate business ethics. b. On consideration and recognition: People's Committee of Hanoi, counties, districts and towns established the Steering Committee of mordern civilization commercial construction at its own level (city, district and town). Based on the above criteria, Hanoi People's Committee has decided to assess a scale for each criterion with a total score of 8 criteria is 100. Commercial business establishments registered trade execution. If they gain over 95, they will be considered as commercial standards of mordern civilization. 1.4.3.2. Mordern Civilization commercial criteria for districts and towns: a. Criteria: Counties, districts and towns in the city of Hanoi are civilized and modern when 3 criteria are sastisfied: 7 (1) 90% commercial business facility meet the criteria of modren civilization. (2) Market to be qualified of the Ministry of Science and Technology. (3) No temporary illegal market. b. In consideration and recognition: Hanoi People's Committee established Steering Committee of Hanoi modern civilization commercial development. Based on the above criteria, the municipal People's Committee has decided to assess a scale for each criterion; the total score of 3 criteria is 100. Districts, counties and townships reach over 95 will be considered commercial standards of modern civilization. 1.4.3.3. Hanoi modern civilization criteria: a. Criteria: Hanoi commerce sector meet the modern civilization standards when 3 criteria are sastisfied: (1) 80% of districts, counties and towns reach modern civilization criteria. (2) ECommerce: 95% of online sale website meet the City standards of business registration, merchandise quality, safe payment and guarantee related services. (3) The proportion of goods distributed through a network of various modern civilization commercial organizations are more than 60%. b. On consideration and recognition: Based on the above criteria, the Hanoi People's Committee proposed Ministry of Industry and Trade on assessment and accreditation Hanoi has reached commercial standards of modern civilization. They also have policies to support Hanoi trade development growth in the next period. 1.4.3.4. Qualitative criteria: (1) Civilized and modern characters of modern civilization commerce. (2) The accessibility various types of modern civilization commerce. (3) The competitiveness of various types of modern civilization commerce. 20 3.3. Solutions for Hanoi commercial development towards civilization and modern to 2020, Vision 2030 3.3.1. Enhance and unity the awareness. direct the Hanoi commercial development toward civilization and modernity. All functional levels and departments should continue to innovate their awareness of Hanoi commercial development towards civilization and modernity with more breakthroughs. They will propose and implement effectively the encouragement mechanisms, policies enable them to attract more resources for development of civilized and modern commercial organization. 3.3.2. Finalizing the plan and creating land funds for commercial development towards civilization and modernity Strengthening the legal and enforceability validity of the schemes on commercial, wholesale and retail network development planning in Hanoi. In the process of economic and social development planning direction, Hanoi People's Committees have to set aside land for of civilized and modern business’s infrastructure development investment. 3.3.3. Encourage investment in building infrastructure for trade towards civilization and modern Supplementing policy to encourage all domestic and foreign economic sectors to participate in trade infrastructure development towards civilization and modern. Renovate and upgrade traditional market system. Overview, arrange and restructure old quarters, commercial streets, ensuring modern requirements with the cultural identity of traditional business. The City applies pilot mechanisms for investment in new construction of modern commercial streets. 3.3.4. Firmly removing temporary markets and strengthening market management Firmly getting rid of temporary markets, contributing to the operation of the major market by reducing the competitive element of surrounding temporary markets. Especially, removing spots located on highways, sidewalks, roadways. Continuing to promote the fight 19 local conditions and market principles, international integration commitments. Third, encouraging socialization of investment together with strengthening state management in commercial development towards civilization and modern. Fourth, Hanoi trade development towards civilization, modernization and trade cooperation and with local authorities in the region and nationwide. 3.2.2. Objectives: Hanoi should focus on building the network of various civilized, modern trade organizations in Hanoi for agile development, rational structure, with the participation of all economic sectors and types of organizations, operating in a competitive environment with the management and macro-regulation of the State. By 2020, the network of various civilized, modern trade organizations in Hanoi will become the main sales channel in the market of the city; cargo traffic speed is accelerated; price and quality of goods circulated through the system is stable; sales services rendered increasingly diverse, quality and contribute actively to the implementation of the task of protecting and improving the environment; the level of development of retail market are markedly improved, contributing to improving the urban civilized lifestyle, standard of living and quality of life of people of the capital, Hanoi build a major commercial center of the country , have positions in the region. 3.2.3. Orientations - Diverse development of the commercial business sectors. - Developing business types must ensure balance between traditional and modern trade, increasing the proportion of sales through networks of trade towards civilization, modern in total retail sales. - Commercial network planning must be feasible and effective. - Strengthening the capacity and effectiveness of the management of the commercial network of the City. - Supporting Hanoi business association to operate efficiently. 8 (4) Consumers, domestic and foreign press have many opinions, news articles with positive reviews. 1.4.4. The necessary requirements to achieve commercial development criteria towards modern civilization in Hanoi (1) Planning: The trading facility must be arranged in accordance with the planning. Simultaneously, the construction of works must comply with the plan. (2) Facilities of stores: * For commercial business facility of civilization and modernity: Location, the scale of business area; Stores are built solidly with high aesthetics, advanced technology, modern facilities and equipment; Professional logistics system; Standardized display and sale facilities (counters, cabinets, shelves, etc.); In the design of the storefront using electronic billboards, glass cases systems, windows, etc. ensuring characteristics of each brand names, etc. * For traditional businesses: They have to meet the basic requirements of the construction industry and architecture of the building. The embellishment of the traditional retail stores have to preserve cultural identity. Particularly, markets in these areas have to meet the standards of the Ministry of Science and Technology on the market design criteria in Decision 3621/QĐ-BKHCN announced Vietnam standard TCVN 9211:2012. (3) Goods: * For commercial business facility of civilization and modernity: Goods are selling through a network of various modern civilization commercial organizations have to be labeled; frequently inspection of quality, food safety and other regulations related to the commodity; Goods have to be held and arranged by commodity, a scientific group, neat and spectacular in each line or group of goods; All kinds of goods, business services have to have listed price. * For traditional business: Goods must have quality guarantee, right packing. (4) Sales methods: 9 * For commercial business facility of civilization and modernity: Sales is mainly by mode of customers’s option applying innovative payment instruments; Depending on the characteristics of each commodity business, it is organized or jointly organized various of pre- sales, sales and after-sale services. * For traditional business: Ensuring convenient for purchasers. (5) Method of service: Sellers have to perform "Code of Conduct: Hanoian are elegant and civilized". (6) Labour: * For commercial business facility of civilization and modernity: Management and store staffs are to be trainned and fostered as prescribed. * For traditional business: Mobilizing all small businesses in turn to attend training course on "sale skills". Sellers have commitments with the content " Code of Conduct: Hanoian are elegant and civilized". (7) Environment: Business establishments commercial activities without harming the environment and with green, clean and beautiful environmental activities. (8) Security at these business establishment is maintained. (9) E-Commerce: The online shopping websites have to registered business, ensuring product quality, billing and service. 1.5. Factors affecting the modern civilization commercial development - Economic factors. - Policies and laws on commerce of the State management. - Environmental, natural and social factors. - Other factors. 1.6. International experiences in commercial development towards modern civilization 1.6.1. Experiences of some international capitals in trade development towards modern civilization 1.6.1.1. Lesson learnt from Beijing – China Encouraging and applying supportive policies to promote the development of various civilized and modern trade organizations; 18 CHAPTER 3 ORIENTATION AND SOLUTIONS FOR HANOI TRADE DEVELOPMENT TOWARDS MODERN CIVILIZATION TO 2020, VISION 2030 3.1. Domestic and international context In the coming time, according to world forecast, the region will have rapid and complicated changes. Beside the advantages and difficulties, peace and cooperation, new challenges will be appeared. That is the context that Vietnam has been deeply and extensively integrated into the world economy with the positive acceleration to improve a market economy, the establishment of ASEAN Economic Community (AEC) in 2015, the full opening of retail market in 2015, according to the commitments signed when joining the WTO, together with the implementation of multilateral and other bilateral commitments in TPP agreement signed with the countries... However, the trend of international economic integration continues to promote the Hanoi and Vietnam trade development. As forecasted, Hanoi will increasingly develop. The economic growth rate during period 2016 - 2020 will be about 8.5 to 9%. GDP per capita will be $ 3,600 in 2015; 2020: above $ 5,500; 2030: about $ 11,000. Population size in 2015 is 7.2 to 7.4 million peoples, 2020: from 7.9 to 8 million peoples; 2030: about 9.4 million peoples. The percentage of urbanization: 2015 reaches 46-47%, by 2020: 54- 55%. 3.2. Development views and objectives, directions of Hanoi trade towards civilization and modern 3.2.1. Views: First, Hanoi commercial development accordance with the Capital overall planning of economic and social development and master plan of Hanoi trade development. Second, synchronous development of modern business associated with upgrading the quality of the traditional trade, in accordance with 17 Secondly, state management of market and commerce have not been respected. Third, the level of economic development is low, trade was mainly small business, with low productivity, quality and service efficiency. Fourth, the mechanisms of capital access, land for businesses to develop a civilized and modern trade are very limited. Administrative procedures are still troubling, time-consuming and losing business opportunities. b) Causes of the commercial business entities: Firstly, businesses and producers is in lack of knowledge, experience and hard to change habits in their business, making the modern business underdeveloped and inefficient. Second, the major causes stunting the development of civilized and modern business’s infrastructure systems is that the development of current business sector has not created a powerful growth of commercial transaction demands. 10 Renovating and modernizing malls and traditional commercial infrastructures; Planning and developing modern commercial infrastructures, especially focusing on supermarkets, hypermarkets, shopping malls; Standardizing technical standards on distribution, commodity circulation; Expanding the application and use of advanced technology, equipment in commercial facilities construction, business, operation and exploitation. Encourage businesses to modernize information systems and apply e-commerce; Improving the quality of staff, encouraging M&A, forming large supermarkets; Restricting supermarket investments in urban because of saturation, encouraging investment in areas that have not or not yet developed. Establishing "Association of Chinese chain stores and franchise. 1.6.1.2. Lesson learnt from Bangkok – Thailand Foreign distributors can only open each individual supermarket; Promulgating regulations on fair trade for supermarkets and retail sectors in the city. Establishing the Union of domestic retail to compete with foreign supermarkets; Modernize retail. Mainstreaming promotion of modern trading system with national tourism promotion 1.6.1.3. Lesson learnt from Kuala Lumpur – Malaysia Encouraging the development of trade centers and supermarkets in major cities and regulating that commercial centers and supermarkets must be consistent with the overall construction planning for each region, with no adverse effect on small and medium businesses or traditional markets. the commercial centers and supermarkets with an area over 6000 m2 are not allowed to be built in urban centers. 1.6.2. Some lesson learnt for Hanoi 11 - The determination of planning and permitting construction of various civilization and modern commercial organizations need to be codified into laws, legislations. - Good, flexible and creative management for development planning of various civilized and modern trade organizations. The shortcomings and delays in building and implementing commercial development planning may cause excessive opening. - Policies to encourage state support of the State and local authorities for domestic trade development focus on two target groups: to protect small businesses, encourage joint ventures to form large distribution conglomerates. - Synchronously using solutions in supporting and managing commercial development of civilization and modernity. - Diversifying resources for commercial development of civilization and modernity. - Attach importance to e-commerce development. 16 tax consulting and inspection and test. It also supported commercial enterprises through targeted programs: The emulation and reward; honor for the outstanding enterprises and institutions of professional associations. 2.4. General assessment the situation of Hanoi commercial development towards civilization and modern Hanoi Trade has developed fairly powerful in recent years, making it become a huge business center of the country and a trade exchange hub domestically and internationally. * The achieved results: The legal regime is increasingly improved. Commercial activities in the city increasingly meets the development criteria towards civilization and modern. * The existences: Legal system for civilized and modern trade has not caught up with the development of the economy and integration process. The type of business towards civilization, modernization has not met the expectations of the capital residents. Most of the business establishments are small and can not meet the prescribed technical standards. Good’s categories, quality and civilized, modern commercial services have not met the service using requirements of capital residents. Business management methods of the majority of the stores are still traditional and bearing the stamp of a small and professiona retail trade,not accordance with the international standards. Civilized and modern commercial resources are still inadequate. The implementations of planning of civilized and modern commercial organizations are slow and unequal. 2.4.2.2. Causes of existences: a) Causes of the State: First, common thought, conscience and view of the position and role of commercial activities in the country for the national economy are not profound and inadequate. 15 a large proportion, approximately 51-58% of the total labor commerce in Hanoi. 2.2.2.2. Human resources and and basis systems of commercial enterprises and individual services: By the end of 2013, there were 145,886 individual businesses mainly non-specialized retail households. In 2013, commercial labors and individual services in Hanoi reached 372,548 people. 2.3. Current situation of state management of Hanoi commercial development towards civilization and modern 2.3.1. Current situation of guidelines, mechanisms and policies for development and management of Hanoi commerce towards civilization and modern Implementing the policies and laws of the State in recent years, the City has been actively issuing and implementing many policies and mechanisms for economical and commercial development. These activities achieved remarkable results. It also has actively promoted international economic integration and the implementation of international commitments, extensive renewal in both quality and vision in planning policies and institutional development. It studied and removed the unnecessary licenses, reduced administrative procedures. 2.3.2. Current situation of mechanisms and policies deployment to promote commercial development in Hanoi towards civilization and modern. The City has actively implemented urgent measures to prevent deterioration, maintain economic growth and ensure social security and support trade promotion. Administrative procedure reform are conducted synchronously in the departments and districts. Organizational apparatus of State management for private commercial sector in Hanoi is carried out in compliance with the guidelines of the management mechanism innovation. The City has also actively supported ground and invested in the commercial development projects. It has implemented many preferential policies, supported commericial investment enterprises. Besides this, the City focuse on 12 CHAPTER 2 COMMERCIAL DEVELOPMENT SITUATION OF HANOI TOWARDS MORDERN CIVILIZATION DURING PERIOD 2008-2013 2.1. Overview of Hanoi economical and commercial development situation The Hanoi capital has an area of 3,328.89 km2. In 2013, the proportion of industry was 41.7%, agriculture was 4.9% and commercial service was 53.4%. The proportion of trade maintained relatively stable within 11.18% - 11.25% of Hanoi’s GRDP. Calculated by current prices, the trade sector contributed 50,442 billions Vietnamese dong in 2013. Hanoi trade sector’s added value reached an average increase of 20.31%/year during the period 2008-2013. Total domestic commercial products in 2013 increased 2.5 times compared to that of 2008. Hanoi commerce sector’s turnover reached 1,290,000 billions Vietnamese dong in 2013. Continuous and high growth on Hanoi’s circulation of goods and services in the last few years shows that commercial activities in the city have gained good development, ensuring the circulation of goods to meeting the demand of producers and consumers, towards civilization and modernity. 2.2. Commercial development situations of Hanoi towards mordern civilization during period 2008 - 2013 2.2.1. Network organization, technology level of retail commerce in Hanoi 2.2.1.1. Traditional commercial systems: a. Market system: By 31st Dec. 2013, Hanoi had 418 markets with 1,699,377 m2 area, including: 13 markets of Grade 1; 68 markets of Grade 2; 309 markets of Grade 3 and 28 ungraded markets; On average, each district or town has 14 markets, each market serves about 17,224 people. Overall, the number of markets have not yet met business needs of the sellers and goods procurement needs of the byers. It only meets the basic demands of daily necessities. 13 However, by 31st Dec. 2013, 187 temporary markets still remained all over the city. People's Committees of districts had plans to release these markets but clearance works and post-clearance maintenance are difficult. b. The individual businesses systems (households’s retail stores): In 2013, there were 145,886 individual business in Hanoi. c. The warehouse systems: There were 7 bonded warehouses and 234 large warehouses (area of more than 500m2) in Hanoi. d. Petrol and gas business systems: There were 661 liquefied petroleum gas (LPG) stations and 483 gasoline retail stores. 2.2.1.2. The system of modern commercial facilities: a. Supermakets: By 31st Dec. 2013, there were 137 supermarkets, including 98 general supermarkets, 39 specialized supermarkets in Hanoi (electronics and home appliances: 19; Fashion: 5; Other specialized: 15), accounting for about 19% of the country's supermarkets. On average, each district had about 5 supermarkets. Of all graded 101 stores, there were 18 supermarkets of grade I, 35 supermarkets of grade II, 50 supermarkets of grade III and 34 ungraded supermarkets. The distribution of supermarkets among districts across the city is uneven, mainly concentrated in the urban area. The districts had 116 supermarkets, districts and towns had 21 supermarkets. b. Shopping mall system: There are 26 shopping malls in Hanoi, making about 15% of the country. Shopping malls are classified by investment, including: Private capital and others: 20; Direct foreign investment: 6; State capital: 0. There are 22 shopping malls in urban districts and 4 shopping malls in rural districts. c. Convenience store systems: There are 1,060 convenience stores in Hanoi, including convenience stores under retail chains independent convenience stores. They are concentrated mainly in the urban districts. 14 d. System of department stores, specialized and cheap selling shops: There are 770 department stores in Hanoi. In addition, the number of specialized stores, cheap selling shops are still limited and scattered. They are listed in the area of individual business households by Hanoi Statistical Office and Department of Trade and Industry. e. Ecommerce Situation The city has 136,901 units with e-commerce transactions, of which 21,904 units operating in the field of wholesale and retail. Up to 20.6% of the city businessese has introduction websites. Hanoi has more than 82.149 million subscribers, including 2.601 million post-paid mobile phone subscribers; and 3,255,000 internet subscribers. For 136,901 units with e-commerce transactions in the area, on average, 33% of sales of the businessese is from online placed orders and businesses also spend 28% of the cost to purchase through this channels. f. Situation of and transport and logicstics facilities of commercial support By 2013, the volume of goods transported in the city was 569,023,000 tons; volume of goods transported in the city was 47,752 million tons.kilometers. Currently, the infrastructure of logistics services in Hanoi is still poor, small-scale, layout unreasonable. The quality of this system is not even, some places have not met technical requirements. The activities are spontaneous, petty and not linked to chain of retail supply services. 2.2.2. Current situation of the organizational structure and human for retail commerce management 2.2.2.1. Human resources and basis systems of commercial enterprises: In 2013, there were 57,778 commercial enterprises in Hanoi. Of these, 311 SOEs, 56,485 non-state enterprises and 982 foreign investment enterprises. Labor in commercial enterprises reached 411,855 people in 2013. In the 2008-2013 period, employees in business enterprises accounted for