Tc Ch C Scientific Research Work on the Ministry of Science and Technology; Training of Cadres for the Ministry of Science and Technology; Organizing the National Conference on Science and Technology in the Central Highlands/City


The State on trade in the province/city must do a good job of organizing the implementation of approved plans, programs, and projects for trade development, promptly detecting and adjusting plans, programs, and projects for trade development to suit actual development conditions. In addition, it is necessary to regularly organize, guide, and inspect the implementation and promptly detect new issues that arise to make recommendations and adjustments. Carry out market inspection and control, directly organize inspection and examination activities to combat smuggling, counterfeiting, trading in prohibited goods, illegal business and other violations of trade laws in the province/city. Thereby, promoting the commercial activities of traders in the province/city, protecting the legitimate interests of producers and consumers.

1.1.2.8. TC organizes scientific research and training activities; trains civil servants and public employees; and promotes scientific research activities in the province/city.

This is a management content aimed at bringing scientific advances into commercial activities and improving the operational capacity of commercial management and business organizations in the province/city. This work requires a relatively long-term investment of time and money that businesses can hardly do well, requiring State management agencies to participate in implementation. State management agencies must organize well scientific research and application of science and technology to commercial business activities in the area. Organize training and fostering to improve professional qualifications for officials and civil servants working in State management of trade, commercial enterprises in the area according to the planning and training plan to meet


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needs and commercial development trends of the province/city.


Tc Ch C Scientific Research Work on the Ministry of Science and Technology; Training of Cadres for the Ministry of Science and Technology; Organizing the National Conference on Science and Technology in the Central Highlands/City

1.1.3. The need to improve the content of State management of trade in the province/city

The completion of the State management of trade in the province/city is extremely important to ensure a smooth market for goods and services, a favorable legal and policy environment and in line with the current integration trend. The necessity of completing the State management of trade in the province/city is shown by:

Firstly, due to the new development practices of trade in the province/city: In the context of the business environment of the province/city having fundamentally changed as our country continues to resolutely implement the Doi Moi process to build a modern market economy and participate in full and deep integration with the region and the world. Trade in the province/city will continue to develop in both breadth and depth, especially the rapid development of modern trade and e-commerce. A truly competitive market will be formed in the province/city and will become increasingly fierce. Enterprises will have to compete with each other in their own market, the domestic market and the foreign market when implementing the integration roadmap with the regional and international economy. The new development practices of trade in the province/city pose new requirements and tasks for State management of trade.

Second, due to the pressure to innovate trade policies in the process of international economic integration. In the context of globalization and regionalization in the world taking place more and more deeply, most governments of countries have chosen the path of opening up to international economic integration to carry out industrialization and modernization of the country. Participating in international economic integration, governments of countries have


accept to implement rules-based trade policies instead of unilateral trade policies or results-based trade policies. This situation also happens to Vietnam when the country participates in international economic integration, accepts the rules of the WTO and becomes a member of this organization. Innovation in trade policies is a content of innovation in State management of trade.

Trade in the province/city will develop strongly according to the market economy mechanism and have deep openness and integration with the region and the world. State management regulations on trade from the subsidy period cannot be applied to the vivid reality of trade today, inevitably leading to the need to improve State management accordingly.

Third , it is the inherent requirement to enhance the capacity and effectiveness of State management of trade in order to meet the requirements of management practices. Trade practices have fundamentally changed under the impact of Innovation, openness and integration. If State management of trade does not have appropriate innovations but remains stagnant and backward, it will hinder the development of trade in the province/city and also pose challenges to the existence of the State management system itself. Therefore, innovation and improvement of the content of State management of trade in the province/city becomes more urgent. Especially the requirement to improve the capacity to develop and implement strategies and plans for trade development in the area, the capacity to inspect and ensure food hygiene and safety, inspect and supervise all types of wholesale and retail trade online...

Fourth, international economic integration will lead to the development of the distribution system. The great attraction of retail to foreign investors, especially


Transnational distribution corporations (TNCs) invest in building modern types of stores such as supermarkets, hypermarkets, shopping malls, etc. The major issues being raised in State management of trade in the province/city are how to ensure harmony and balanced development of trade? How can domestic retailers be protected from the expansion of TNCs when implementing the roadmap to open the distribution market according to WTO commitments while still ensuring the legitimate rights of consumers and maintaining stability and market development in the province/city? Another requirement for State management of trade in the province/city is to orient the development of the province/city's trade to reach regional and world stature in the medium term.

1.2. ROLE AND CHARACTERISTICS OF HANOI TRADE


1.2.1. The role of Hanoi trade


Trade, in the sense of a distribution service industry, plays a vital role in any commodity-producing economy, whether large or small, developed or developing. Trade performs the functions of export, import, distribution, circulation, and is an indispensable link in the goods distribution system from production to final consumers. Trade plays an important role in the process of implementing expanded social reproduction, contributing significantly to promoting production development, economic development, increasing benefits for consumers, and improving the quality of human life. As society develops, the level of social division of labor and specialization increases, and consumer needs become more individualized, the role of trade becomes more important. In practice, the most advanced countries are also the countries with the most developed trade in the world and the contribution of trade to gross domestic product (GDP) in these countries is much higher than the trade/GDP ratio of the


other countries. For example, the United States is the world's economic superpower and also the country with the largest foreign trade turnover in the world. In particular, the contribution of wholesale and retail trade to the US GDP structure is also very high. According to the Bureau of Economic Statistics, US Department of Commerce, the total import and export turnover of goods and services of the United States in 2005 reached 3,280.0 billion USD, of which export turnover reached 1,283.07 billion USD and import turnover reached 1,997.44 billion USD, the trade deficit of goods and services was 714.4 billion USD. Wholesale sales of goods of US-owned wholesalers (Merchant wholesalers) (excluding wholesale sales of manufacturers/manufacturers) in 2005 reached 3,858.0 billion USD and was equal to about 29.7% of the US GDP. Retail sales of goods and services reached about 3,693.4 billion USD in 2005, accounting for about 24% of the GDP ($13,000.0 billion in 2005) of the United States.

Trade also plays an important role in creating jobs for society, in investing in business development to create wealth and material for society, and to realize added value for the economy; Taking the case of the United States as an example, according to employment statistics of the Department of Labor (DOL), the wholesale sector accounts for about 4.4% of the workforce and 7.0% of the number of business establishments in the United States; the corresponding figures for the retail sector were 11.6% and 12.1% in 2006.

The important role of trade in the national economy is also clearly demonstrated in the theory of supply chain or value chain. Especially in the context of globalization and internationalization today, these chains are studied on a global scale. Global Value Chain (GVC) is defined as a production - business chain according to the globalization method, in which many countries, mainly enterprises, participate in different stages, from design; manufacturing; marketing; to distribution; consumer support. GVC allows


The stages of the chain are located in locations (countries) that can achieve the highest efficiency at the lowest cost. The key role of GVCs is often transnational corporations (TNCs) due to the cross-border nature of their operations and their ability to attract international cooperation, trade and investment. Chain theory also shows that, in the three main stages of the chain: (1) research and design, (2) production, assembly and (3) trade, stages 1 and 3 create the greatest added value. Thus, trade development is the way not only to implement but importantly to increase added value for the economy...

The role of Hanoi's trade in the economic and social development of the City is as important as the role of trade in the development of a general economy. The role of Hanoi's trade is researched and determined based on the following criteria:

First, the proportion of the trade sector in the total GDP of the City over the years (including import-export and wholesale and retail trade in the area);

Second, the contribution of the trade sector to the City's GDP growth (the contribution of the trade sector to GDP growth is measured by the ratio (%) between the increase in GDP of the trade sector and the total increase in GDP of the entire City economy);

Third, the ratio of capital use of Hanoi's trade investment over the years (investment capital for trade/total social investment capital of the City);

Fourth, attracting labor to Hanoi's trade in the City (labor of Hanoi's trade/total labor of the City, ratio of additional employment in trade compared to the total employment increase of the City...);

Fifth, the contribution of Hanoi's trade to attracting development and enhancing the competitiveness of other sectors (industry, agriculture,


fisheries, tourism…);


Sixth, the rate of modern technology equipment for the commercial sector.


1.2.2. Characteristics of Hanoi trade


Hanoi has an important geographical and political position, with special advantages for trade development compared to other localities in the country. As the national political and administrative nerve center; a major center of economics, culture, education, and health, it concentrates foreign embassies and international organizations; has many road, rail, waterway and air traffic hubs, convenient for trade with the outside. The technical infrastructure has been built quite well in the country. These are factors that ensure not only the connection of Hanoi's market with the domestic and world markets, but also allow Hanoi to quickly access trade opportunities, promote its strength in attracting, coordinating and distributing goods and services to develop trade in both domestic and foreign markets, serving and promoting the process of participating in the international and regional division of labor and integrating into the world market of Hanoi in particular and the whole country in general.

As the largest economic center in the North, Hanoi has the attraction and ability to promote and attract the commercial development of the Red River Delta and the Northern midland and mountainous region, the key economic region of the North, thanks to the large consumer market for goods, the favorable development of service industries, and the distribution network that is able to closely link with the supply sources of goods in the region.

Hanoi is a major traffic hub and the center of service industries, so it has favorable conditions to develop a trade industry of Southeast Asian scale.

Hanoi also plays an important role in the cooperation of the two economic corridors of Vietnam and China: Kunming - Lao Cai - Hanoi - Hai Phong - Quang Ninh and Guangxi - Lang Son - Hanoi - Hai Phong. Accordingly, Hanoi is a city


central city and hub for developing trade relations in these two economic corridors.

Hanoi is a leading center of science and technology, with favorable conditions to attract domestic and foreign scientists. In that condition, Hanoi's trade sector also has many advantages to enhance modern technology level, meeting development goals.

As the capital of the country, Hanoi has all the favorable conditions and factors to develop the trade sector, promote its role as a center for goods exchange and distribution, and an economic and international trading center of the whole country.

The above conditions have outlined a picture of Hanoi's trade with the following characteristics:

Firstly, Hanoi’s commerce focuses on the most abundant and diverse demand for goods and services in the country. This diverse demand originates from the diversity of Hanoi’s consumer groups with different lifestyles and incomes of the population and social classes.

Second , Hanoi is one of the two major consumer markets of Vietnam. The capital Hanoi, with its advanced development level compared to the whole country, with the second largest population in the country and the highest per capita income in the country, is also home to many young residents, with jobs and guaranteed income, so there is a high demand for consumption and shopping. With this characteristic, Hanoi's trade has promoted its position as one of the two largest commercial centers in Vietnam, contributing mainly to the total added value of the country's trade and making a significant contribution to the socio-economic development of the city in particular and the country in general.

Third, the capital's trade is the hub for wholesale flows in the region and the whole country.

Fourth , the diverse and complex nature of Hanoi's trade on the

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