Hanoi commercial development towards modern civilization to 2020, vision 2030

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

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

THESIS IMPLEMENTED AT VIETNAM INSTITUTE FOR TRADE

  

Supervisors:

Prof Dr Do Duc Binh

Dr Nguyen Minh Phong

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

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:

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.

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

- Department Stores

- Cheap Stores

- Retail store chains

- Warehouse distribution centers

- Specialized Stores

- Convenience Stores

- E-Commerce

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

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)

(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:

(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.

(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:

* 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

Encouraging and applying supportive policies to promote the development of various civilized and modern trade organizations;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

- 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

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:

of daily necessities