Summary of doctoral thesis in economics: Hanoi Commercial Development Towards Modern Civilization to 2020, vision 2030

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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


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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


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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:

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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.


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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.


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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
- Cheap Stores
- Shopping malls
- Retail store chains

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./.


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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

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- Department Stores
- Specialized Stores
- Convenience Stores

- Warehouse distribution centers
- E-Commerce

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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

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.

1.4.3.1. Civilized and modern commercial for commercial business
facility::
a. A set of civilized and modern commercial including eight (08)
criteria:


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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" ...

(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:


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(1) 90% commercial business facility meet the criteria of modren
civilization.

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

(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.


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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.

(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:


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* 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 presales, 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;

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: 5455%.
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


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Secondly, state management of market and commerce have not been
respected.

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

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.

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- 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.

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.


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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

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:

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

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.


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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:

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

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.