Ministry suggests rental incentives for retailers

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SaigonTimes English - 35 month(s) ago 4 readings

HANOI – The Ministry of Industry and Trade has suggested the Ministry of Planning and Investment extend land-related incentives for distributors and retailers to help develop the domestic distribution and retail systems.

Ministry suggests rental incentives for retailers

By Lan Nhi - The Saigon Times Daily

HANOI – The Ministry of Industry and Trade has suggested the Ministry of Planning and Investment extend land-related incentives for distributors and retailers to help develop the domestic distribution and retail systems.

Vo Van Quyen, head of the Domestic Market Department under the trade ministry, said Government Decree 108 on investment incentives should be revised. The proposal came after the Fivimart supermarket was recently closed in HCMC’s Phu My Hung town as a result of failure in land rent negotiations.

The Fivimart outlet in Phu My Hung was the fourth and final one to stop operations in the city. This prompted the trade ministry to work with Fivimart to see what is happening to the retailer, Quyen said.

“Distribution system operators do not have direct access to land, so they have to lease locations via a third party in a definite time. When their contracts fall due, they will be forced to either relocate or accept rent increases,” he said.

According to Quyen, business at other outlets of Fivimart elsewhere in the country is as usual.

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