VietNamNet Bridge – Despite economists’ opposition to the 1,000-supermarket plan proposed by the Hanoi Industry and Trade Department, officials are still determined to go ahead with it.

Tran Thi Phuong Lan, deputy director of the department, once again spoke about the need for the supermarkets at a press briefing at a meeting of the Hanoi Communist Party Committee.

Lan said that with an expected population of 9.4 million and an annual income per capita of $17,000, the development of 1,000 supermarkets by 2030 was “quite within the reach”.

Under the wholesale and retail network development program, Hanoi would have 999 supermarkets of different kinds by 2030, as well as 42 shopping malls and 595 traditional markets.

Of the 999 supermarkets by 2020, there would be 23 hypermarkets (first-class supermarkets), 111 second-class supermarkets and 865 third-class supermarkets.

Traditional markets would no longer be built in the inner city, while existing traditional markets with an area of over 3,000 square meters will be upgraded into hypermarkets or shopping malls.

Lan said the high economic growth rate has led to better living standards and thus higher shopping demand.

With the expected high number of consumers and income per capita, Lan estimates that the total retail revenue in Hanoi would reach $45.6 billion by 2020.

Regarding the land fund for the 1,000 supermarkets, Lan said this would not be a big problem, because there was no need to set up supermarkets on new land areas. The supermarkets can be developed in basements or on the first floors of high rises in urban areas.

Phan Dang Long, deputy head of the Hanoi Party Committee’s Propaganda Division, said he was shocked to hear about the 1,000 supermarket development plan, but he later found the plan reasonable.

He noted that with strong development, Hanoi would need 1,500 or 2,000 supermarkets by 2020-2030.

“The average income per capita is on the rise and the purchasing power has also been increasing. Meanwhile, the people in the suburbs now have to go to the central areas of the city to buy the things they need,” Long noted.

Replying to the warning that many supermarkets in the future would be left idle due to oversupply, Long said the problem would not occur if Hanoi follows a reasonable development plan.

Long admitted that the Hang Da and Cua Nam Supermarkets at the center of Hanoi are no longer busy. However, he attributed this to the existence of small traditional markets nearby.

Lan also said that once the traditional markets are cleared, people will have to go to Hang Da and Cua Nam, because they won’t have other choices.

Dat Viet