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On June 5, 2024, the Government issued Decree No. 60/2024/ND-CP on market development and management. This Decree establishes detailed regulations for classifying, managing, and organizing market activities, with the aim of enhancing efficiency in meeting the needs of people and businesses. The Decree takes effect from August 1, 2024.

Decree No. 60/2024/ND-CP includes: 5 Chapters, 38 Articles, 2 Appendices, 13 report forms, 2 project forms, and 1 form of minutes of handover and acceptance of public assets.

The newly issued Decree has many changes compared to previous regulations, specifically as follows:

- Modify the scope of adjustment: “The market regulated in this Decree is a market organized at a location according to planning...” (no longer use the phrase “traditional”).

- Change the concept of people's market from "People's market: is a class-three market (managed by communes and wards) that sells common and essential goods serving people's daily lives" (regulated in Decree No. 02/2003/ND-CP and Decree No. 114/2009/ND-CP) to "People's market: is a market that sells common and essential goods serving people's daily lives" (expanding the scope compared to current regulations).

- Eliminate concepts such as markets in border economic zones, border markets, mountainous markets, border gate markets... Add the following concepts: night market; spontaneous business site; market of relics, history, culture, architectural landscape; community market; agency in charge of managing public assets of a market; market infrastructure assets. Supplement and clarify concepts: permanent market, semi-permanent market.

- Market classification by:

 (1) Business method (people’s market, wholesale market), in which the criteria for wholesale market are added because the Master Plan for market network development has been integrated into national planning, regional planning, and provincial planning according to the provisions of the Law on Planning;

 (2) Scale to decentralize management (markets of class 1, class 2 and class 3 - basically unchanged compared to Decree No. 02/2003/ND-CP and Decree No. 114/2009/ND-CP and does not cause disruption);

(3) Capital sources (state budget and non-state budget capital sources) instead of just classifying by scale as in Decree No. 02/2003/ND-CP and Decree No. 114/2009/ND-CP.

In addition, regarding regulations on market development plans; market construction investment; rights and obligations of market construction investors; regulations on market construction investment projects and arrangement of construction works within the market: Basically, the content of Chapter II inherits the provisions of Decree No. 02/2003/ND-CP and Decree No. 114/2009/ND-CP. Adjusted contents compared to Decree No. 02/2003/ND-CP and Decree No. 114/2009/ND-CP. Namely,

- Eliminate regulations on market development planning and replace them with market development plans to comply with the Planning Law.

Market construction investment

Regulations on market development plans; market construction investment; rights and obligations of market construction investors; regulations on market construction investment projects and arrangement of works within the market.

The content of Chapter II inherits the provisions of Decree No. 02/2003/ND-CP and Decree No. 114/2009/ND-CP.

Adjusted contents compared to Decree No. 02/2003/ND-CP and Decree No. 114/2009/ND-CP. Namely,

- Eliminate regulations on market development planning and replace them with market development plans to comply with the Planning Law.

- Regarding market construction investment: Allow localities to proactively balance state budget capital to invest capital in developing people’s markets and wholesale markets in the area, following practical situations, urgency, regulations of law on public investment, state budget and other relevant legal regulations instead of regulations on the decentralization of investment support (central and local) to some specific categories and types of markets as before. Reason:

- Separate regulations on the rights of investors in market construction from regulations on market construction investment and have separate regulations on the rights and obligations of investors in market construction. Transfer the contents of the Market Construction Investment Project and the arrangement of works within the market to the rights and obligations of the market construction investor.

- Obligations of the investor in building the market include regulations on performing maintenance during the market construction investment project cycle; publicly posting information at the headquarters of competent state agencies and other relevant locations for at least 30 days and seeking opinions from relevant parties following the law; developing plans and policies to support the relocation and operation of temporary markets... and other relevant regulations.

 On market management and business activities at the market

Regulations on market management organizations; responsibilities of market management organizations; market rules; management of locations at the market; rights and obligations of traders doing business at the market...

The content of Chapter III inherits the provisions of Decree No. 02/2003/ND-CP and Decree No. 114/2009/ND-CP.

Adjusted contents compared to Decree No. 02/2003/ND-CP and Decree No. 114/2009/ND-CP. Namely,

- Clarify that the market is managed by enterprises, cooperatives that invest, trade, exploit, manage the market or entities assigned to manage market infrastructure assets for assets invested by the state... instead of the market management board as before.

- Regulations on the obligations of market management organizations, including additional responsibilities for: preventing and controlling infectious diseases; maintaining market operations to ensure the supply of goods in situations and requirements of competent authorities.

- Market regulations: inherit the provisions of Decree No. 02/2003/ND-CP and Decree No. 114/2009/ND-CP, only regulating the main contents, accordingly the Provincial People's Committee is the agency that issues standard market regulations for relevant organizations and individuals to develop and apply, while simultaneously reducing administrative procedures for approving market regulations.

- Regarding business management at a market:

+ Inheriting regulations on 2 types of business locations at the market, on making plans for exploitation, arrangement, and organization of business areas, and use of business locations at the market (including rental price plans for business locations).

+ Reduce administrative procedures on plans for arranging and reorganizing business lines and using business locations at markets submitted to the People's Committee for approval compared to the provisions in Decree No. 02/2003/ND-CP and Decree No. 114/2009/ND-CP.

+ Conduct a draw when the number of traders exceeds the number of existing business locations (applicable to markets using investment capital from the state budget) instead of implementing the bidding regulations when the number of traders registering to use or rent exceeds the number of business locations that can be arranged at the market as prescribed in Decree No. 02/2003/ND-CP and Decree No. 114/2009/ND-CP.

+ Supplement regulations on the term of use or lease of business premises at the market as agreed upon by the parties, except in cases where other laws provide; the term of use or lease of business premises at the market must be stated in the contract between the market management organization and the traders doing business at the market according to the guidance of the competent People's Committee. Eliminate the regulation that plans for arranging and organizing business areas and using business locations at markets must be submitted to the People's Committee at the competent level for approval.

- Change the name of the regulation on business activities at the market to the rights and obligations of traders doing business at the market to match the content, basically keeping the regulations in Decree No. 02/2003/ND-CP and Decree No. 114/2009/ND-CP, omitting the regulation on traders having business locations at the market (for the type assigned to traders for business use in case of a contract to contribute capital in advance to invest in building the market or pay for use once within a certain period after the market is completed) to use the business location as collateral for business loans at commercial banks according to the provisions of law.

These highlights help Decree No. 60/2024/ND-CP play an important role in improving the quality of management and development of markets, while ensuring safety and benefits for consumers and businesses.

The management, use and exploitation of market infrastructure assets invested and managed by the state

Regulations on principles, procedures, records of management, use, exploitation and handling of market infrastructure assets invested and managed by the State.

The content of Chapter III is completely new, not regulated by Decree No. 02/2003/ND-CP and Decree No. 114/2009/ND-CP but belongs to the Law on Management and Use of Public Assets.

Accordingly, Chapter IV on Management, use and exploitation of market infrastructure assets invested and managed by the State includes 7 sections. Specifically as follows:

Section 1. Implementation principles for: (1) Managing, using and exploiting market infrastructure assets invested and managed by the State; (2) Handling assets when converting the operating model of the entity assigned market infrastructure assets.

Section 2. Handing over market infrastructure assets: (1) Regulations on subjects and forms of handing over market infrastructure assets; (2) Decision-making authority; order and procedures for handing over market infrastructure assets managed by provincial and district levels. Accordingly, the assigned subjects include: public service units; enterprises in which the State holds 100% of charter capital (state-owned enterprises); specialized agencies on market infrastructure assets (to develop asset exploitation plans).

Section 3. Records of management, accounting and maintenance of market infrastructure assets.

Section 4. Exploiting market infrastructure assets in three ways: directly exploiting market infrastructure assets, leasing the right to exploit market infrastructure assets and transferring the right to exploit market infrastructure assets for a limited period. Enterprises and cooperatives are not restricted from participating in asset exploitation through the method of exploitation lease and limited-term transfer.

Section 5. Handling market infrastructure assets in recovery, transfer, liquidation, and disposal in case of loss or destruction.

Section 6. Managing and using the proceeds from exploiting and handling market infrastructure assets; handling assets when converting the owner of market infrastructure assets; database and reporting of market infrastructure assets).

Section 7. Market infrastructure asset database and reporting.

The content of Chapter IV will contribute to strengthening management, improving the efficiency of using and exploiting public assets in the market as well as promptly removing obstacles and difficulties related to regulations on managing market exploitation rights, compensation, market clearance and relocation, ensuring consistency with new legal regulations such as public asset management, budget, etc.

However, Chapter IV also creates 5 administrative procedures and the Provincial People's Committee determines the implementing agency.

According to The Phuong - Trade Management Office

Translated by Ngoc Huynh