Tuesday, 21/10/2008 07:29

Mekong River Delta: Key wholesale markets idle

Key wholesale markets still do not play an important role in the distribution system and help stabilise the market, as they were designed to do, since a lot of them are sitting idle.

The state began thinking of developing the key market system 5-6 years ago as a part of the plan on preparing for global economic integration. Currently, the programme on developing the key wholesale market system is being implemented under Decision No 12 by the Ministry of Industry and Trade on the key market development master plan by 2010 with vision towards 2020 which costs VND7,837bil.

Several months ago, a ‘rice fever’ occurred in Vietnam, the country which is called the granary of Asia. The fever showed the problems in the distribution network and shortcomings in the trade infrastructure. State management agencies believe that key rice wholesale markets can help mitigate the fever as they can help regulate prices.

In fact, many key wholesale markets at the national and regional levels have been built in Mekong River Delta provinces, of which the markets in Long An, Tien Giang and Dong Thap have been operating for  2-4 years. However, many of them still do not play as an important a role in the distribution system and help stabilise the market as they were designed to.

Key national fruit market selling fish sauce

Satra Tien Giang national fruit key market covers an area of 11.2 ha in Hoa Khanh commune in Cai Be district of Tien Giang province. The market is located in the most advantageous position in the area, facing 1A Highway, linking HCM City and the Mekong River Delta. The market is also in the midst of the natural canals and streams and Cai Be district’s tens of thousands of hectares of fruit. The Southern Fruit Technology Application Centre, the country’s leading agricultural scientific research centre, is located not far away.

Chairman of the Tien Giang People’s Committee Nguyen Huu Chi said that the local authorities hoped to connect the key market with Ba Dac rice market to form up a distribution chain of farm produce.

However, Chi admitted that the market has not been operating well since it was established, which has forced the local authorities to hand over the market to the Saigon Trade Corporation (Satra) for exploitation.

Satra, after receiving the right to develop the market, turned the main building of the National Fruit Centre into the ‘Tri Hai Fish Sauce Supermart’, and built more hotels, restaurants and offices. However, the supermart has not attracted clients.

Four months ago, Satra asked for permission to change the name of ‘National Fruit Centre’ to ‘Agriculture Business and Service Centre’. With the name change, this will be a centre for plant varieties, animal feed, aquaculture feed, agriculture-forestry equipment, serving agriculture production. As such, the ‘national fruit centre’ will not exist anymore.

Rice market: When will the construction finish?

While the Dak Lak coffee market is going to open at the end of the year at the second coffee festival, the construction of the key rice wholesale market in Thot Not district in Can Tho city has not been completed. The Prime Minister asked the Ministry of Industry and Trade and relevant ministries to find the reasons for the slow implementation of the project, which was scheduled to be finished in 2005.

Thot Not rice market is expected to become one of the three key national rice markets, though Can Tho only provides 1mil tonnes of paddies a year, less than An Giang, Kien Giang and Dong Thap provinces. VND20bil has been allocated from the state budget to speed up the construction of the market.

Therefore, the proposal by Can Tho authorities to stop investment in the rice market and use the land for industrial development proves to be surprising. Nguyen Huu Loi, Deputy Chairman of Can Tho People’s Committee, said that relevant branches are trying to speed up the construction of the Thot Not Rice market as the Prime Minister urged the completion of construction.

A lot of questions have arisen about how to invest and develop key wholesale markets most effectively. However, the answers are not presenting themselves easily.

VNN

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