Deputy Prime Minister Trinh Dinh Dung has asked ministries, sectors and localities to revise the regulations on wholesale and retail markets, support development of domestic retailers and better manage distribution and retail activities of foreign-invested retail companies.
The request was made in Deputy PM Dung’s conclusion at the conference on reality, and management and development solutions of the retail market and introduction of a draft decree to replace Decree No. 23/2007/ND-CP dated February 12. According to the conclusion, the wholesale and retail markets are developing rapidly with great potential and attracting the attention of both local and foreign investors.
|Opportunities and challenges for Vietnam's retail market__Photo: Internet|
Regarded as a sensitive sector, the retail market has been gradually opened to foreign investors following Vietnam’s international commitments. However, the management of foreign retailers has proven to be ineffective while there has been a lack of support for local firms to expand their distribution networks, according to the conclusion.
In the conclusion, the Ministry of Finance (MoF) was asked to intensify inspection of foreign wholesale and retail companies to prevent transfer pricing and tax evasion.
The Ministry of Planning and Investment (MPI) was tasked to coordinate with the Ministry of Industry and Trade (MoIT) in redefining or supplementing terms “foreign investor” and “foreign-invested economic organization” referred to in the Law on Investment in order to better manage the involvement of foreign investors and foreign-invested economic organizations in the country’s retail market.
In the meantime, the MoF will have to consider aiding local retailers by rescheduling the payment of their land rentals in case they rent land for building trader centers and department stores.
The Deputy PM also requested the MoIT to coordinate with the Ministry of Justice and relevant agencies in drafting a decree to replace Decree 23/2007/ND-CP on the purchase and sale of goods by foreign-invested enterprises. The new decree is scheduled to be submitted to the Prime Minister for issuance in the first quarter of this year.-(VLLF)