The draft circular on the classification and management of some types of commercial infrastructure has caught public attention.

According to the Domestic Market Management Department, the new circular will follow regulations of Decision 1371/2004/QD-BTM and amend regulations which have become unsuitable to the new circumstances.

The biggest difference between Decision 1371 and the draft circular compiled by MOIT is the addition of criteria for mini marts, convenience stores, outlet stores and outlet centers. 

Meanwhile, the criteria for supermarkets and shopping centers and many of the regulations are nearly the same as the provisions in Decision 1371

The only difference between the draft circular and Decision 1371 in the criteria for first-class general supermarket is in the required retail premise area. Under the decision, a supermarket must have a minimum area of 5,000 sq m, while the draft circular says it is 3,500 sq m. 

Meanwhile, the criteria for second-class general supermarkets in the draft circular have been ‘copied’ from Decision 1371, i.e. they must have 2,000 sq m at minimum and sell 10,000 products. Specialized supermarkets have to have an area of 500 sq m or higher, and sell more than 1,000 product items.

Regarding mini marts, MOIT believes that it must have a business area of at least 80 sqm, and sell more than 500 product items.

Convenience stores must have a minimum business area of between 30 sqm and 200 sqm. The products at the stores are mostly food, groceries and FMCG. At the stores, buyers serve themselves and make payment at counters.

The draft circular requires first- and second-class supermarkets to have food and entertainment services, while shopping centers must reserve areas for entertainment activities, offices for lease and an area for finance and banking activities.

Some analysts pointed out that the proposed regulations in the draft circular impose too much intervention in enterprises’ business freedom. It is unreasonable to require supermarkets, shopping centers and outlet centers to set operation regulations and reserve areas for displaying and selling local specialties.

Except the figures about required areas and number of product items, the other criteria in the draft circular are described with general phrases such as ‘convenient’, ‘modern’, ‘diverse’ and ‘quality assurance’. 

The Vietnam Confederation of Commerce and Industry (VCCI) has proposed the removal of the regulations.

An expert questioned why MOIT wants to use criteria set 15-20 years ago.

VCCI, which has been asked to offer suggestions for the draft circular, said it cannot understand what the circular is for, and has asked the compilation agency to explain the necessity of the issuance of the document.

Nguyen Thi Minh Thao, Head of Business Environment and Competitiveness Research Department under the Central Institute of Economic Management (CIEM), also commented that there are many unreasonable requirements in the draft circular.

“Will there be any effects on tax payments and consumer benefits if one commercial establishment is called a supermarket instead of shop? The problem is that I cannot see if the classification will ensure national benefits, benefits for consumers and state management,” Thao said.

“Business conditions, when they are set forth, have to serve the benefits of the nation and consumers, and ensure social order and people’s health. I don’t know what the new regulations protect. Maybe I still don’t have enough information about this,” she said.

She said there is no need to set requirements on a supermarket’s area, because many supermarkets have warehouses in many different places. Supermarkets in modern times don’t have to display all products on shelves.

“Online sales have been developing very well and supermarkets have begun using this distribution channel. Is Amazon called a supermarket? What is Shopee?” she said. “It is a blunder to use an old management mechanism for the new development trend."

Meanwhile, according to the Domestic Market Management Department, some provincial industry and trade departments have asked to replace Decision 1371 with another legal document.

In its report to MOIT in July 2020, the Ha Tinh People’s Committee said that the Decision 1371 was issued many years ago (2004) and is no longer suitable to the new circumstances, which needs amendment and replacement.

The Bac Giang Industry and Trade Department said that since agencies still have not yet set standards and requirements on supermarkets and shopping centers, the investment and construction of commercial establishments does not fit the urban landscape and commercial civilization. This also places difficulties for management, supervision and handling of violations.

Luong Bang