Hanoi Supermarket Association to be launched in April

Hanoi Supermarket Association to be launched in April

Vu Vinh Phu, deputy director of the Hanoi Department of Trade, said that around 20 supermarkets in Hanoi had registered to join the Hanoi Supermarket Association, which was due to be launched in April. The association will operate on three principles, including voluntary participation, self-financing, and self-responsibility before the law. With its target of helping members improve their competitiveness, the Hanoi Supermarket Association will protect members from trade fraud and propose that the Government issue proper mechanisms and policies. 

Hanoi now has about 60 supermarkets, trade centres and self-service shops. Many small supermarkets are finding it difficult to compete with foreign-run large supermarkets, including Metro and Big C. Metro alone is planning to invest over US$100 million in developing ten supermarkets in Vietnam. This year, the chain will build one more supermarket in Thanh Tri district in Hanoi,. In addition, foreign-run supermarkets enjoy 50 per cent reduction in their revenue tax in their two first operational years. This is not applied to domestic supermarkets, leading to unfair competition. Phu said that unfair competition among supermarkets had been found in fake information, fraud in sale software, and made-up revenues for tax evasion. Thus, Phu said that authorised agencies should more carefully supervise activities of supermarkets and the establishment of the Hanoi Supermarket Association will make activities of supermarkets healthier.  

Phu went on to say that according to Regulations on Supermarkets issued recently by the Ministry of Trade, supermarkets would have to classify themselves based on their scale, area and goods. By April 1, 2005, any supermarket, which cannot meet the requirement, will not be allowed to display their signs. The Hanoi Department of Trade will co-operate with some relevant agencies to examine the classification. According to the Hanoi Department of Trade, half the number of existing supermarkets and trade centres may qualify to display their signs.  

• Doan Phuong