THE GOVERNMENT

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- Regulation scope and objects

1. This Decree prescribes the development and management of marketplaces and apply to organizations and individuals participating in marketplace-related activities covering the fields of planning on the development of marketplace networks; investment in construction, repair and upgrading of marketplaces; business activities of marketplace exploitation and management; goods purchase and sale in marketplaces.

2. Marketplaces governed by this Decree are traditional marketplaces organized at places according to planning and satisfying demands of goods trading and exchange as well as the consumption demands of population areas.

3. The types of department stores, trade centers, goods trading centers, including foreign-invested department stores and trade centers shall not be governed by this Decree.

Article 2.- Interpretation of terms and phrases

A number of terms and phrases used in this Decree shall be construed as follows:

1. The marketplace spaces mean areas planned for market activities, including areas for arrangement of business locations and service areas (parking lots, warehouses, food and drink provision, entertainment and other services) and passages around markets.

2. Pivotal marketplaces mean marketplaces which play a key role in attracting and rallying large volumes of goods from production and business sources of economic zones or commodity lines for further distribution to other marketplaces and circulation channels.

3. Solid marketplaces are those built to ensure that they have a use duration of over 10 years.

4. Semi-solid marketplaces are those built to ensure that they have a use duration of between 5 and 10 years.

5. Business locations in marketplaces, including counters, stalls, kiosks and shops, which are arranged in a fixed manner within the marketplace spaces according to the marketplace designs, with the minimum standard acreage of 3 m2/location.

Article 3.- Marketplace classification

1. All marketplaces must be classified according to standards prescribed in Clause 2 of this Article.

2. Marketplace classification standards:

a) Class 1- marketplaces:

- are those accommodating over 400 business locations each and being invested and built solidly and modernly according to planning;

- are those located in important economic and commercial centers of provinces or cities or pivotal markets of commodity lines or economic zones, which are held regularly;

- are those which have the floor spaces suitable to the marketplace operation scales and fully provide various services: vehicle watch, goods loading and unloading, cargo warehouses, measurement , goods quality inspection, food hygiene and safety and other services.

b) Class 2- marketplaces:

- are those accommodating more than 200 business locations each, invested and built solidly or semi-solidly according to planning;

- are those located in economic exchange centers of regions and held regularly or irregularly;

- are those having floor spaces suitable to marketplace operation scales and providing minimum services therein: vehicle watch, goods loading and unloading, warehouses, measurement service.

c) Class 3- marketplaces:

- are those having less than 200 business locations each or not yet invested and built solidly or semi-solidly.

- are those mainly in service of trading demands of people in communes, wards and vicinity areas.

Chapter II

PLANNING ON DEVELOPMENT AND INVESTMENT IN CONSTRUCTION OF MARKETPLACES

Article 4.- Marketplace development planning

1. Marketplaces constitute an important part of the overall socio-economic infrastructure; from now on, the localities’ socio-economic development planning in each period must include the marketplace development planning. The marketplace development planning must be drawn up according to the principles stated in Clause 2 of this Article and approved by and implemented under the direction of, the defined competent agencies.

2. The principles for drawing up the marketplace development planning:

a) To formulate the system of marketplaces of different sizes suitable to the volumes of goods circulated in the areas, contributing to production development and intensified goods exchange; attaching importance to the development of marketplaces in deep-lying, remote, mountainous and island regions in association with the cultural exchange demands of people of various ethnic groups.

b) To develop pivotal marketplaces according to commodity lines, particularly farm produce and foodstuff pivotal marketplaces in order to contribute to stepping up the consumption of goods in concentrated agricultural, forestrial and aquacultural production regions.

c) The marketplace development planning must be in line with the planning on construction of population quarters, traffic works, electricity supply and water supply and drainage works and other public works, ensuring environment sanitation; for class 1- and class 2- marketplaces, they must be arranged with adequate floor spaces as provided for in Clause 1, Article 2 of this Decree.

3. All investment projects for construction or transformation, overhaul or upgrading of marketplaces must comply with the approved planning.

Article 5.- Investment in construction of marketplaces

1. Sources of capital for investment in the construction of marketplaces include sources of capital contributed by enterprises, production and business individuals as well as people; sources of credit loan; sources of development investment capital of the State, of which the main capital sources come from enterprises, production and business individuals and credit loan capital.

2. The State encourages organizations, individuals and enterprises of all economic sectors to invest or join the State to invest in the construction of marketplaces of different types.

3. The source of development investment capital of the State (including capital from the central budget, local budgets and non-refundable aids) shall be used as support for investment in the construction of marketplaces of some following types:

a) Specialized farm-produce and foodstuff pivotal marketplaces to consume goods in concentrated agricultural, forestrial and aquacultural production regions.

b) Marketplaces in highland, deep-lying, remote or island commune clusters under the State’s programs for socio-economic development, hunger elimination and poverty alleviation or sedentarization.

c) Class 1- marketplaces under planning at key economic and commercial positions of provinces or cities, acting as centers for goods exchange and satisfaction of consumption demands in big cities and provincial capitals.

4. Marketplace construction investors of all economic sectors shall enjoy policies of investment preferences for production and business lines prescribed in Clause 5, Section II of List A (investment in construction of trade zones and department stores) of the Annex promulgated together with the Government’s Decree No.51/1999/ND-CP of July 8, 1999 detailing the implementation of the (amended) Law on Domestic Investment Promotion.

5. The marketplace construction investors shall have the right to:

a) Mobilize capital for construction of marketplaces on the basis of agreement reached with traders who register to use or rent business locations in the marketplaces and other sources of capital contributed by people under the provisions of law and concrete guidance of the People’s Committees of provinces or centrally-run cities (hereinafter called the provincial People’s Committees for short).

b) Mortgage the land use right and projects in the marketplaces under their respective use right for bank credit capital loans according to the current regulations for investment in overhaul, transformation or upgrading of marketplaces.

Article 6.- Provisions on investment projects for marketplace construction and arrangement of intra-marketplace works

1. Investors wishing to build, overhaul, transform or upgrade marketplaces must elaborate projects thereon under the current regulations on investment and construction management and get the approval from competent authorities according to current regulations.

2. The arrangement of works within marketplaces under the investment projects on marketplace construction must strictly comply with the normative process on marketplace construction, paying attention to the following regulations:

a) Arranging enough floor spaces and equipment as well as facilities in service of fire prevention and fighting in accordance with the current regulations.

b) Arranging water supply and drainage works, public toilets, lighting and ventilation equipment and ensuring environment sanitation in accordance with the prescribed standards.

c) Arranging parking lots with acreage suitable to the number of market goers, ensuring order, safety and convenience for customers.

d) For class 1- and class 2- marketplaces and specialized pivotal marketplaces, goods storehouses must be arranged in accordance with the regulations on food hygiene and safety as well as the sizes and nature of the marketplaces.

Chapter III

MARKETPLACE EXPLOITATION AND MANAGEMENT BUSINESS

Article 7.- Provisions on marketplace exploitation and management business

1. Marketplaces built with the State’s investment or investment capital support under Clause 3, Article 5 of this Decree shall be assigned by provincial People’s Committees to subjects for organizing business in exploiting and managing activities in the marketplaces according to the following regulations:

a) For newly built marketplaces, assigning to or organizing bidding to select enterprises to do business in exploiting and managing the marketplaces. The enterprises shall do business in exploiting and managing marketplaces under the provisions in Article 9 of this Decree.

b) For operating marketplaces administered by the Marketplace Management Boards, they shall be step by step shifted to the regime as prescribed at Point a above. The Marketplace Management Boards shall operate in accordance with the provisions in Article 8 of this Decree.

c) For marketplaces in highland, deep-lying, remote or island regions mentioned at Point c, Clause 3, Article 5 of this Decree, they can be assigned to enterprises being trade and service cooperatives for organizing the marketplace exploitation and management business.

2. Where marketplaces are built with the State’s investment support and with capital contributed by organizations, individuals and/or enterprises of various economic sectors, the provincial People’s Committees shall base themselves on the capital contribution levels and percentages to select subjects for doing business in exploiting and managing the marketplaces (Marketplace Management Boards, enterprises, trade and service cooperatives or joint-stock companies set up under the provisions of law). The modes of selecting subjects shall comply with Clause 2 of this Article.

3. Marketplaces built with investment of organizations, individuals, family households or enterprises of various economic sectors shall be commercially exploited and managed by such organizations, individuals, family households or enterprises in form of enterprise under the provisions of law and the provisions on enterprises doing business in exploiting marketplaces in Article 9 of this Decree.

Article 8.- Marketplace Management Boards

1. Marketplace Management Boards are non-business units with revenues, which shall cover by themselves all expenses, have the legal person status, their own seals and accounts opened at the State Treasury.

2. Marketplace Management Boards shall have to manage the State property and activities within one or several marketplaces; sign contracts with traders for rent and use of business locations; dealing in services at the marketplaces; organize fire prevention and fighting, environment sanitation, order and security as well as food safety within the marketplaces; work out internal regulations of the marketplaces according to the provisions in Article 10 of this Decree for submission to competent People’s Committees for approval according to the marketplace management decentralization; organize the implementation of the internal regulations of the marketplaces and handle violations thereof; administer the operations of the marketplaces and organize the development of activities in the marketplaces; sum up the situation of business activities of the marketplaces and send periodical reports to State management agencies under the guidance of the Ministry of Trade.

Article 9.- Enterprises doing business in exploiting and managing marketplaces

Enterprises doing business in exploiting and managing marketplaces are those set up, registering their business and conducting business activities under the provisions of law, having the responsibility to organize the implementation of the following regulations:

1. Organizing the commercial provision of services in marketplaces.

2. Ensuring the work of fire prevention and fighting, environment sanitation, order and security as well as food safety within the marketplaces.

3. Drawing up the marketplaces’ internal regulations as provided for in Article 10 of this Decree for submission to competent People’s Committees for approval according to the marketplace management decentralization; administering the marketplace activities according to such internal regulations and handle the violations thereof.

4. Organizing and arranging business areas to ensure the requirements on order, sanitation, trade civilization and satisfy demands of traders doing business in the marketplaces.

5. Signing contracts with traders for rent and use of business locations in the marketplaces and other services according to the provisions of law.

6. Providing economic information, disseminating policies, law provisions and traders’ obligations towards the State under the guidance of functional bodies.

7. Summing up the situation of business activities of the marketplaces and periodically reporting thereon to State management bodies under the guidance of the Trade Ministry.

Article 10.- Marketplaces’ internal regulations

1. All marketplaces must have internal regulations for application within the marketplaces. The marketplaces’ internal regulations shall be elaborated on the basis of the provisions of this Decree and current law provisions and include the following main contents:

a) The rights and obligations of traders doing business in the marketplaces.

b) The regulations on goods and services to be traded in the marketplaces.

c) The regulations on people going to the marketplaces for transactions, purchase or sale.

d) The regulations on fire prevention and fighting.

e) The regulations on security and order in the marketplaces.

f) The regulations on environment sanitation and food safety.

g) The requirements on building civilized commercial marketplaces.

h) The requirements on organizing and participating in cultural and social activities in the marketplaces.

i) The regulations on handling of violations in the marketplaces.

2. The marketplaces’ internal regulations must be publicly and clearly posted up within the marketplace spaces and disseminated to all traders doing business in the marketplaces.

3. All organizations and individuals participating in activities of buying, selling and exchanging goods as well as services within the marketplaces must abide by the marketplaces’ internal regulations.

4. The Trade Ministry shall promulgate model internal regulations for uniform elaboration of marketplaces’ internal regulations and application to all marketplaces. The provincial People’s Committees shall have to specify the provisions in the model internal regulations to suit the practical situation of their respective localities.

Article 11.- Management of business locations in marketplaces

1. Business locations in marketplaces shall cover the following types:

a) The type of business locations assigned to traders for use in service of their business activities if there are contracts on advance contribution of capital for investment in the marketplace construction or the lumpsum payment for the use thereof within a given period of time after the marketplace construction is completed.

b) The type of business locations leased to traders for business activities.

2. The Marketplace Management Boards or the marketplace- exploiting business enterprises shall have to:

a) Draw up plans for arrangement of business lines and the use of business locations in the marketplaces and submit them to the competent People’s Committees for approval.

b) Implement the provisions on bidding when the number of traders registering for use or rent exceeds the number of business locations which can be arranged in the marketplaces under the approved plans.

c) Sign contracts with traders for the use or rent of business locations under the provisions of law.

3. The provincial People’s Committees shall specify the use, rent, the duration therefor and measures to manage business locations in the marketplaces in line with the nature of each type of marketplace and the practical situation of their respective localities.

Article 12.- The provisions on business activities in marketplaces

1. Traders having registered business lines compatible with the scope of business lines of each type of marketplace shall all be entitled to conduct business activities in the marketplaces after signing contracts for use of business locations or rent of business locations in the marketplaces with the Marketplace Management Boards or with the enterprises doing business in exploiting and managing the marketplaces.

2. Traders doing business in marketplaces must abide by the plans on arrangement of business lines of the marketplaces.

3. Traders doing business in marketplaces, apart from abiding by the provisions of law, shall also have to strictly implement the marketplaces’ internal regulations and submit to the management by the Marketplace Management Boards or the marketplace-exploiting and – managing business enterprises.

4. Traders may transfer or sublease their contractually valid business locations to other traders.

5. Traders having business locations in marketplaces under the provisions at Point a, Clause 1, Article 11 of this Decree, may mortgage their business locations to borrow business capital at commercial banks under the provisions of law.

6. Small-scale producers who sell their own products by themselves (peasants, handicraft workers,...) and small traders, street vendors shall be arranged in the marketplaces at places reserved for unfrequent traders in the marketplaces, and must abide by the marketplaces’ internal regulations.

7. Regarding goods and services to be traded in the marketplaces:

Goods and services traded in the marketplaces are goods and services not on the lists of those banned from business by law and shall not fall under the following categories:

a) Goods containing radioactive substance and ionized radiation equipment.

b) Explosive materials, fire- and explosion-prone liquid such as petrol and oils (excluding lighting kerosene), liquefied gas, compressed gas of various kinds.

c) Plant protection drugs on the list of those restricted from business.

d) Toxic chemicals on the list of those subject to conditional business.

In order to ensure trade order and civilization, goods traded in marketplaces must be arranged according to commodity lines, commodity groups; and adversely inter-acted goods shall not be arranged near each other.

8. Handling of violations in marketplaces:

a) Law violations in marketplaces shall be handled according to current law provisions.

b) Violations of marketplaces’ internal regulations shall be handled by the Marketplace Management Boards or the marketplace-exploiting business enterprises under the provisions of the marketplaces’ internal regulations.

Chapter IV

STATE MANAGEMENT OVER MARKETPLACES

Article 13.- Contents of the State management over marketplaces

1. Drawing up plannings, plans and orientations for marketplace development in each period in line with the socio-economic development planning, plans and orientations in each locality and regions, meeting the people’s production, goods circulation and consumption demands.

2. Promulgating policies on investment, construction, exploitation and management of marketplace activities.

3. Managing marketplaces built with the State’s investment according to regulations on management decentralization.

4. Directing and guiding the Marketplace Management Boards and the marketplace- exploiting and –managing business enterprises on marketplace management policies and operations.

5. Organizing the propagation of the Party’s undertakings and lines as well as the State’s policies and laws to people in the marketplaces.

6. Organizing the inspection, commendation and/or reward and the handling of violations in marketplace activities.

Article 14.- Responsibilities of ministries and branches

1. The Trade Ministry:

a) To assume the prime responsibility and coordinate with the concerned ministries and branches in studying and submitting to the Government for promulgation, amendment or supplement, policies and orientations on marketplace development and management.

b) To assume the prime responsibility and coordinate with the Ministry of the Interior in guiding the functions, tasks and powers of the Marketplace Management Boards under the provisions in Article 8 of this Decree..

c) To promulgate the model marketplace internal regulations and guiding documents on management of marketplace business activities.

d) To specify and guide the regime of reporting on marketplace activities.

e) To direct the organization of professional fostering for marketplace- managing officials.

f) To direct the commendation and reward, inspect the handling of violations of law and/or marketplace internal regulations.

2. The Ministry of Planning and Investment:

a) To guide and direct the provincial People’s Committees in drawing up plannings on marketplace development and construction investment in accordance with the provisions in Chapter II of this Decree.

b) To guide and direct the provincial People’s Committees in drawing up annual plans and examine and submit to the Government for approval plans on investment in the construction of marketplaces with the State’s investment or investment capital support in accordance with the provisions in Clause 3, Article 5 of this Decree.

c) To guide and direct the implementation of policies on investment preferences for organizations and individuals participating in the investment in the construction of marketplaces under the provisions of this Decree.

3. The Finance Ministry: To guide the financial mechanisms applicable to the Marketplace Management Boards and the marketplace- exploiting business enterprises in accordance with the provisions of this Decree.

4. Other ministries, branches and State agencies shall have to guide and direct the implementation of relevant provisions in this Decree.

Article 15.- Responsibilities of the People’s Committees at all levels

The People’s Committees of all levels shall have the responsibilities to direct the elaboration of plannings on marketplace development, to manage the investment in the construction of marketplaces according to decentralization on investment in capital construction, to perform the function of State management over the marketplaces and implement the following regulations:

1. The provincial People’s Committees:

a) To decide on assigning to or organizing bidding to select enterprises doing business in exploiting marketplaces.

b) To decide the establishment and define the functions, tasks, powers and organization of, the Marketplace Management Boards for class 1- marketplaces (built with the State’s investment or investment capital support) being in operation under the administration of the Marketplace Management Boards.

c) To specify the use and rent of business locations in marketplaces according to the provisions in Article 11 of this Decree.

d) To specify the marketplaces’ internal regulations on the basis of the model internal regulations promulgated by the Trade Ministry and to approve the internal regulations of class 1- marketplaces.

e) To specify the handling of violations of the marketplaces’ internal regulations.

2. The People’s Committees of urban and rural districts:

a) To decide the establishment and define the functions, tasks, powers and organization of, the Marketplace Management Boards for class-2 and class-3 marketplaces (built with the State’s investment or investment capital support) being in operation under the administration of the Marketplace Management Boards.

b) To approve the internal regulations of class 2- and class 3- marketplaces.

3. The commune/ward People’s Committees: To have responsibilities to manage class-3 marketplaces and coordinate with provincial- or district-level agencies in managing marketplaces in their respective localities.

Chapter V

COMMENDATION, REWARD, HANDLING OF VIOLATIONS AND IMPLEMENTATION ORGANIZATION

Article 16.- Commendation and reward

Organizations and individuals recording achievements in the construction and development of marketplaces and management of marketplace activities shall be commended and/or rewarded according to the Government’s regulations.

Article 17.- Handling of violations

State officials and employees, business organizations and individuals and persons entering marketplaces for goods purchases and/or sales, if violating the provisions of this Decree, shall, depending on the seriousness of their violations, be disciplined, administratively or criminally handled according to law provisions.

Article 18.- Implementation organization

1. This Decree shall apply immediately after it takes implementation effect to newly built marketplaces not yet put into operation and marketplaces to be built, transformed or upgraded.

2. For operating marketplaces, the Trade Ministry is assigned to guide and direct the application of the provisions of this Decree on the principle of ensuring the stable operation of the marketplaces and gradually proceed to the full implementation of this Decree.

3. The provincial People’s Committees should concentrate on directing the early fulfillment of the following tasks:

a) Drawing up, supplementing and adjusting the marketplace development planning according to the provisions of this Decree.

b) Preventing and putting an end to the state of marketplaces emerging spontaneously or built in contravention of plannings; working out plans and measures to get rid of marketplaces not included in the plannings and spontaneously emerging marketplaces, first of all marketplaces held on roadbeds, street pavements, thus affecting traffic safety, environment sanitation and public order.

c) Organizing the implementation of the provisions in Article 7 of this Decree.

d) Posting and arranging cadres for the Marketplace Management Boards for marketplaces being in operation under the administration of the Marketplace Management Boards under the guidance of the Trade Ministry and the Ministry of the Interior; implementing the State’s regulations on staff streamlining.

4. The Trade Ministry shall elaborate and promulgate the guiding documents on organization and management of floating marketplaces on rivers or seas, the border marketplaces, border-gate marketplaces and marketplaces lying inside the border-gate economic zones on the basis of the provisions of this Decree and relevant regulations, in compatibility with the agreements signed with countries sharing the borderlines.

Article 19.- Implementation provisions

1. This Decree takes implementation effect 60 days after its signing.

2. The ministries and branches shall have the responsibilities, prescribed in Article 15, to promulgate documents guiding the implementation of this Decree within the prescribed time limits.

3. To annul all other regulations on organization and management of marketplaces, which have been issued by ministries, branches, People’s Committees of various levels before the promulgation of this Decree.

4. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the People’s Committees of the provinces and centrally-run cities shall have to implement this Decree.

On behalf of the Government
Prime Minister
PHAN VAN KHAI