Financing Rural Trade
Prime Minister Nguyen Tan Dung recently made public Decision 23/QD-TTg approving the project “Rural trade development in 2010-2015 and directions until 2020″, which will be launched by the Ministry of Industry and Trade in conjunction with related ministries and sectors.
According to the project, about VND9,126 billion will go to rural trade to give it a boost from now to the year 2020.
The project is to develop rural trade by attracting many economic sectors and distributors to boost farming to keep up with the demand in rural areas. This is expected to be a momentum for restructuring rural economy, eliminating hunger, reducing poverty and creating a premise for rural areas to integrate with the international economy/trade.
The project is also to increase the annual average growth in rural retails and services to 22 percent in 2010-2015 and 20 percent in 2016-2020.
It is expected that rural trading cooperatives will be examined, evaluated and reorganized by the end of 2010 and that a plan for rural trade infrastructure including border markets will be completed in 2011. Farm produce wholesale markets will be set up in central production areas in 2012 following the development plan.
About 50 percent of border markets and those in border economic zones will be built or renewed; 100 percent of district central markets will be upgraded and 30 percent of towns will have medium to small-sized distribution facilities in 2015.
Particularly, the project indicates that 25-30 percent of farm products will be sold on a contract basis in 2015 and 45-50 percent in 2020. Also in 2020, all communes will have markets that will meet new rural standard; rural wholesale markets, border markets and those in border economic zones will be built or renewed; and 80 percent of rural towns will have medium to small-sized distribution resources. There will be one rice exchange in Can Tho and one coffee exchange in Dak Lak province, plus several farm produce auction centers.
The project also addresses the development of rural trade models such as traditional markets, individual businesses, household businesses, trade cooperatives and production/processing businesses in communes and towns. There will also be trading networks selling products by category such as farm products, agricultural materials and consumer industrial products. In addition, the project gives directions for development and management of rural markets in the midland and the lowland.
According to the project, the Ministry of Industry and Trade will together with the Ministry of Agriculture and Rural Development and the Ministry of Planning and Investment direct related authorities to modify, build and develop rural trade infrastructure in 2010-2011 at a total cost of VND31.5 billion.
Investment capital will come from the State Budget, businesses, cooperatives, business households and banks. Markets in difficult or particularly difficult areas will receive the State Budget.
With this project, the Ministry of Industry and Trade wants to solve problems in rural trade and create close ties between farmers and sellers./.
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