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Vietnam: Wholesale markets seek City approval to raise fees
HCM CITY — The management companies of Binh Đien, Thu Duc and Hoc Mon wholesale markets have asked HCM City authorities to adjust their “very outdated” management fees as they have had to compensate for losses.
Speaking at a meeting with city leaders on Monday, Nguyen Van Huay, director of Thu Duc Wholesale Market Management and Trade Company, said that many kinds of costs such as salaries, garbage collection and electricity had risen by 10 times, but management fees had remained unchanged since 2003 when the market was established.
His company has collected only VND280 million (US$13,334) a month from more than 1,400 traders at the market, which was insufficient to cover garbage treatment of VND300 million and electricity costs of nearly VND250 million a month and salaries for guardians.
“We have petitioned to hike the service fee by four to five times from the existing rates, specifically from VND20,000 per sq.m to VND80,000-100,000 per sq.m. Parking fees in the market also need adjustment in line with the market price,” he said.
Tran Thuy Lien, director of Binh Đien Wholesale Market Management and Trade Company, said under the current regulation the management fee at the market was just VND22,000 per square metre.
Such fees are used to pay for many items, such as garbage collection and transport, wastewater treatment, security fees, water and electricity.
As these costs are high, the company has to compensate for big losses every year, she said.
The companies have also asked the city government to resolve problems related to land rentals and to improve transport infrastructure in the markets to make it easy for vehicles to enter and leave the markets.
They have also urged the People’s Committee to speed up relocation of other inner-city wholesale markets to outlying districts, and clear illegal markets near wholesale markets to ensure the legitimate interests of traders at wholesale markets.
Speaking at the meeting, Tran Vinh Tuyen, deputy chairman of the People’s Committee, said the city’s general plan was to develop modern and civilised wholesale markets that will not only be destinations for product buyers but also for tourists.
He said that building brands for wholesale markets and stalls were important, and that brand building began with selling goods with a clear origin and good quality. Ensuring hygiene and food safety was also critical, he added.
In the case of Ho Thi Ky Flower Market in District 10, Tuyen asked the People’s Committee of District 10 to quickly implement measures to relocate the market to ease traffic congestion in the inner-city district.
He said that districts must review zoning plans for traditional markets and make plans to relocate temporary markets.
Binh Đien, Thu Duc and Hoc Mon wholesale markets should develop measures to attract more traders from inner-city wholesale markets, he added.
As for the petition to hike management fees, Tuyen told the city’s Department of Finance to submit new management fees for the three wholesale markets to the municipal government for approval by mid-March. — VNS
Source: http://vietnamnews.vn/economy/351165/wholesale-markets-seek-city-approval-to-raise-fees.html#RbFCiXlUaa16TXMV.99