Need to Reform and Strengthen Institutional Capacity of Trade Development Plans.

quality standards, food safety and hygiene standards, environmental standards... to protect the domestic market and consumer interests.

On the other hand, it is necessary to develop new and adjust regulations on the organization and management of the distribution system for some important or specific items such as gasoline, gas, cement, steel, fertilizer, pharmaceuticals, explosives, alcohol, tobacco, etc. to ensure the principle that the State has the ability to control and use indirect tools to promptly impact the market through upstream enterprises.

Develop regulations for inspection, examination and supervision of retail distribution activities in accordance with the State management objectives: Establish a modern, civilized distribution system in accordance with the development level of the economy; promote consumption of goods to increase the socio-economic efficiency of the modern distribution system; protect consumer rights.

Checking food hygiene and safety, origin of goods, quality of goods, expiry date, etc. It is necessary to build a unified quality management system nationwide to serve effective management. Checking transparency and clarity in price listing, price changes. Checking fire prevention and safety work, backup plans in case of incidents.

3.2.1.4. Strengthening the effectiveness and efficiency of the enforcement of the Competition Law , an important law regulating activities in the retail distribution market: It is necessary to build and strengthen the institutional and professional capacity of the National Competition Commission so that this agency can effectively perform its functions and tasks as the agency ensuring the enforcement of the Competition Law, and at the same time, it is necessary to research and propose the best methods to ensure the enforcement of the Competition Law in practice...

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3.2.1.5. It is necessary to innovate and strengthen the institutional capacity of commercial development plans.

The overall development plan for commercial development must be reviewed and adjusted through the planning of the commercial network of provinces and cities. This is a part of the socio-economic development plan; in which the planning for the development of commercial infrastructure is a part of the land use planning, the plans

The commercial plan after being approved by the competent authority is the legal basis for deciding on investment projects to build commercial infrastructure.

For consumer goods retail trade, commercial planning must ensure the following contents:

+ Strengthen urban consumer goods market planning: including planning for central commercial areas, commercial areas around residential areas, and suburban commercial areas.

+ Planning for businesses to operate in a chain model: Chain business will increase the organizational capacity as well as the level of joint business of small and medium enterprises. Chain business must be considered a key point in the Government's policy.

+ Developing new forms of retail business: Business forms such as supermarkets, shopping malls, warehouse supermarkets are new business forms. For new business forms, there needs to be corresponding planning. For example, large-scale supermarkets need to be developed at a level depending on the specific location and encouraged to develop in new urban areas and industrial centers.

+ Adjust, upgrade, and plan traditional retail formats: for example, for grocery stores, the Government needs to pay attention to the business situation of grocery stores, allowing this type to develop with different scales and locations.

+ Strengthen the renovation of streets and shopping streets: use them as the core of the central commercial area of the city, for example Hanoi's Old Quarter. The renovation of commercial streets makes consumers feel both very modern and still have traditional identity and culture...

+ Rapidly develop new consumer goods markets: along with increased income, consumption levels and consumption focus are also renewed and improved. In food consumption, people tend to pay more and more attention to hygiene, health, quality, spending on durable consumer goods, means of transportation, health care and education, etc. increases. The government needs to have plans and policies to build,

Develop new markets such as housing, automobiles, household appliances, wooden furniture, etc.

3.2.2. Solutions for building and perfecting State management policies

3.2.2.1. Strong development of e-commerce

According to IDG's forecast of Vietnam's information technology market growth, in the period from 2005 to 2008, the spending on information technology in Vietnam was in the top 10 countries in the world. Rapid application of e-commerce will help businesses improve their ability to access the market and seize retail distribution opportunities, thereby developing business activities and enhancing competitiveness in the future.

The National Assembly passed the Law on Electronic Transactions 2005 on March 1, 2006. However, to date, the implementation of the Law in practice is still facing many difficulties, partly due to the lack of documents guiding the implementation of the law, partly due to the weak infrastructure for e-commerce and most importantly, the capacity of enterprises to apply and develop distributed e-commerce is still very limited.

In order for distribution enterprises to be able to soon deploy applications and develop electronic distribution methods, the Government needs to soon adjust some current policies related to the development of e-commerce: some legal documents have been issued but are not suitable for practice and need to be adjusted; it is necessary to recognize that the management of Internet-related activities is related to almost all socio-economic aspects, including e-commerce. Policy-making agencies need to regularly and continuously receive feedback from different subjects on the policies they issue and must strive to make management the least obstacle to development.

3.2.2.2. Strengthening the capacity to deploy and apply advanced retail distribution commercial operation models in the world.

Our country's distribution system is transforming towards modernization but still has the characteristics of a small-scale commercial sector. Along with

In the process of implementing international commitments and policies to attract foreign investment, many "giants" from abroad will appear on the playing field, and types of retail distribution services will also develop in a diverse way. In that context, the decisive factor for the existence and development of the distribution system is the awareness and capacity of enterprises and the supporting role of the State. In addition to finding measures to reorganize the distribution system, the State needs to have preferential policies on investment in infrastructure construction, gathering small and scattered resources into a consistent and in-depth system.

Vietnam needs to quickly deploy and apply modern commercial distribution models such as shopping malls, supermarkets; shopping areas, concentrated commercial and service areas; trading floors, virtual supermarkets, virtual markets, and other forms of non-store sales...

3.2.2.3. On policies to attract investment capital into the distribution system

It is necessary to invest in developing hardware infrastructure systems. Because the Vietnamese retail distribution market is attractive to foreign investors, they are willing to invest in developing modern store systems and shopping centers in Vietnam. However, the goal of business activities is profit, so they often focus on investing in building retail outlets in locations with favorable infrastructure and customer centers, that is, in large cities and urban areas. This is clearly a negative impact on domestic distributors. Therefore, it is necessary to continue to encourage FDI and MNCs to invest in the Vietnamese distribution system, but the incentive target must be new urban areas and industrial parks, where the population is dense but the infrastructure system has not been planned and developed synchronously...

The State needs to support investment from the budget for important commercial infrastructure projects and then conduct bidding for enterprises to exploit and develop the goods distribution system. At the same time, there needs to be appropriate policies for enterprises and people to participate in investing in building infrastructure and developing the distribution system. It is necessary to build and apply the implementation process of the

Investment policy for developing commercial infrastructure according to the Project on developing the domestic market until 2010 with a vision to 2020 was approved by the Prime Minister in Decision No. 27/2007/QD-TTg dated February 15, 2007.

In addition to the early implementation of activities of Vietnamese product introduction centers abroad (the United States, Russia, the United Arab Emirates), it is necessary to prepare conditions to develop a number of additional centers in important markets and have transit organizations such as Turkey, Germany or France. At the same time, there are support policies for Vietnamese enterprises and overseas Vietnamese to develop retail distribution systems in foreign markets.

In addition, the State needs to pay attention to investing not only in the goods distribution system but also in developing services to support the development of the goods distribution system such as transport infrastructure, information infrastructure, payment, warehousing, transportation, etc.

3.2.3.4. Solutions for developing business components participating in the retail system:

For the state to implement policies:

- Encourage domestic retail businesses to centralize through mergers, joint ventures and cooperation by using appropriate tools and measures such as creating favorable conditions in terms of premises and space, supporting the development of infrastructure including information infrastructure and e-commerce applications, supporting commercial human resources, etc.

- Provide preferential credit and financial support to domestic enterprises to enhance the competitive position of domestic enterprises.

- Continue to encourage attracting foreign direct investment in building commercial infrastructure and operating modern commercial models in newly opened industrial and urban centers, in accordance with the country's socio-economic planning and development policies, and regional and territorial economic development policies.

- Encourage retail businesses to establish associations, supermarkets, etc., focusing on attracting business households to participate, to help members share experiences and exchange information.

exchange information, seek opportunities, create joint ventures, support domestic trade promotion, promote brand building and promotion activities...

3.2.3.5. Encourage the formation of distribution associations and other support organizations Distribution associations and other support organizations are the bridge between businesses and their suppliers or between businesses and state management agencies. If the associations operate well, they will strengthen cooperation, stabilize the market from the source of goods, prices, quality of goods sold, and exchange of information between members. In addition, members can also support each other in searching and exchanging market information, reaching out to neighboring localities or cooperating in training management skills, market research for professional staff. In addition, the Association plays an important role in limiting counterfeit goods, fake goods, and goods of unknown origin in the area, and can also form joint ventures and associate with each other to increase competitiveness with distributors.

domestic with large foreign distribution corporations.

It is especially important that the Association will be the representative of the legitimate interests of member enterprises, have a voice and participate as a plaintiff in lawsuits to protect the legitimate interests of members against unfair competition acts of other competitors in the context of competition and integration. Therefore, the establishment of distribution associations in Vietnam needs to be carried out soon and the State needs to provide necessary support for the Associations to officially operate and gradually increase their effectiveness.

3.2.3.6. Land use policy

Modern retail models often develop in big cities, but there is not much land fund and the value of land use rights is quite high. When building new urban areas, the land fund for commercial buildings in general and for building commercial centers, supermarkets, etc. needs to be focused on.

In new urban areas, when planning, it is necessary to reserve land area for the construction of commercial buildings, including land area for the construction of supermarkets and commercial centers, accounting for about 5% of the land fund for urban construction.

For industrial parks and industrial clusters, it is also necessary to plan commercial service areas adjacent to or within workers' housing areas; product introduction centers, shopping centers, etc.

In old urban areas, due to limited land funds and the need to ensure the benefits of traditional retail types, the arrangement of land for the construction of modern types will depend on the actual area of each area. Here, supermarkets and shopping centers need to be of reasonable size and convenient location. It is possible to invest in the construction of high-rise shopping centers and supermarkets to increase land use efficiency, and convert some ineffective models to other areas to reserve land funds for the construction of these modern retail types.

For modern commercial centers, logistic centers, wholesale supermarkets... due to the need to use large land areas and limited impact on traditional commercial or trading centers, there should be a plan to allocate land for development in suburban areas.

3.2.3.7. Training solutions for management staff and employees for the distribution system in general and the retail system in particular.

The Ministry of Industry and Trade needs to develop a project to exploit domestic and foreign capital sources to support training and human resource development of commercial enterprises.

The Ministry of Finance allocates an annual budget to ensure upgrading of material and technical facilities, building a team of teachers and training content and programs in the field of distribution for colleges, intermediate schools and vocational schools under the Ministry of Industry and Trade to meet the need to improve the quality of human resources for the trade sector.

retail

3.3. Recommended solutions to improve business operations

Choosing and building a retail system is a difficult and complicated issue.

complex, but to make the retail system operate effectively is a problem.

The problem is more difficult and complicated. In addition to the State's macro solutions, enterprises need to improve their retail system management and enhance their competitiveness. The author would like to propose some measures as follows:

3.3.1. Effective use of enterprise capital

Limited capital has contributed significantly to hindering the competitiveness of Vietnamese retail distribution enterprises. In the context of difficulty in rapidly increasing capital in quantity, the issue of improving the efficiency of capital use is the appropriate way to solve financial difficulties:

- Review the capital structure and scale in certain market conditions of the enterprise, choose a reasonable capital structure, and increase capital turnover.

- Create healthy and positive financial relations between enterprises and banks and banking credit institutions, in which coordination of activities in many forms is especially important to create opportunities to enhance the effectiveness of the official financial system and effectively monitor the use of enterprise capital.

- Reasonable savings on goods circulation costs is the basic way to increase profits for businesses and create favorable conditions for businesses to lower selling prices while still ensuring a satisfactory profit margin, thereby enabling businesses to stand firm in competition.

- Develop the retail system in the form of agents by taking advantage of the technical facilities and capital of the agents. In addition, it is necessary to expand the forms of joint ventures and associations with multinational corporations and companies, taking advantage of their reputation and market to expand the distribution system of goods to foreign markets.

3.3.2. Improving the quality of human resources

In practice, the staff and sales staff of retail distribution enterprises in our country still show many shortcomings. Therefore, the measures to develop human resources are to diversify skills and ensure the ability to

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