The interpretation of scientific basis (theory and practice), defined the conditions and proposed solutions to develop the network of modern retail outlets in Phu Tho Province.
1 INTRODUCTION 1. Reasons for the study Nowadays, there are many modern types of the retail trade appearing and developing in Phu Tho Province The appearance of supermarkets, commercial centers, onestop shops, in the province has made the retail trade more competitive; and of course that gives the consumers more benifits and choices of shopping. Beside it, the people in Phu Tho are getting used to buying with the modern network of puchase and high quality of services. On the other hand, it also gives the chances for the companies and factories in the province to broadcast and sell the good and special products of the areas by the mordern network of retail business Developing network of retail outlets for modern goods in Phu Tho Province in the context of the country in the period of innovation, industrialization, modernization and integration with the region and the world as a demanding objective reality. The development of production and consumption, especially the increase of consumption and the process of urbanization of Phu Tho Province, along with the prospects of investment in the service sector for the retail distribution of the economic sectors in the province sets out requirements for full stable and harmonious development to the network of modern retail business However, to develop the modern network of the retail trade in Phu Tho Province, we need to have the prerequisites for the formation and growth of this kind of modern retail business For this reason, the Research Student chose the theme "Developing the network of retail business for modern goods in Phu Tho Province" as a doctoral thesis of economy 2 2. Objectives and tasks of the study * Research goal: The interpretation of scientific basis (theory and practice), defined the conditions and proposed solutions to develop the network of modern retail outlets in Phu Tho Province. * Research tasks: Researching theoretic basis and the conditions for developing the network of modern retail outlets of a province; Assessing the status of the conditions for developing the network of modern retail outlets of Phu Tho Province in the period 2006 2013; building outlooks, orienting and proposing the solutions to developing the network of modern retail outlets of Phu Tho Province in the coming time 3. The object and scope of the study 3.1 Subject of research: The thesis focuses on the theoretical and pratical issues on developing the network of modern retail outlets on the area of Phu Tho Province. 3.2. Scope of the study: (1) The scope of time: Reviewed the conditions for developing the network of modern retail outlets in the period from 2006 to 2013 and proposed solutions to each period to the year 2020. (2) The scope of space: The area of Phu Tho Province in the relationship with the neighboring provinces such as Vinh Phuc, Hanoi (3) The scope of content: Research and develop some common kinds of modern retail outlets in Phu Tho Province (including supermarkets, commercial centers, convenience stores, ) 4. Approaches and research methods 4.1. Approach To solve the problems of the study, doctoral fellow used the practical, systematic, dialectic and general approach. 4.2. Research methodology Dissertation used synthetic research methods: systemization and generalization, statistics, analysis, synthesis, interpretation, inductive, comparisoncontrast, surveys and forecasts. Simultaneously, doctoral fellow also used the research form at the table associated with the inheritance documentation, data of a number of organizations, individuals 5. New contributions of the dissertation Systemized, supplemented and developed the theoretical basis about developing the network of modern retail outlets with respect to a province, gathered to clarify the conditions for developing the network of modern retail outlets, identified the evaluation criteria for the development of the network of modern retail outlets to a specific province. Practical summary of factors and conditions for developing the network of modern retail outlets of Phu Tho, from that gave out remarks about the advantages, difficulties in developing the network of modern retail outlets on the area of a province. Building the system of outlooks, orientation for developing the network of modern retail outlets on the area of Phu Tho province in the period towards the year 2020 Proposing a number of solutions to developing the network of modern retail outlets on the area of Phu Tho province by the year 2020 6. The structure of the dissertation Besides parts: Introduction, index, glossary, tables, an overview of the research, conclusion, reference and appendices, the content of the dissertation is divided into three chapters: Chapter 1: Theoretical basis of conditions to develop the network of modern retail outlets on the area of a province; Chapter 2: Assessing the status, conditions for developing the network of modern retail outlets on the area of Phu Tho province; Chapter 3: Solutions to develop the network of modern retail trade in Phu Tho province 4 AN OVERVIEW OF RESEARCH ISSUES An overview of the domestic and foreign studies which are relevant to the topic of the dissertation 1.1. The foreign research: The topic of developing the retail market has been studied by many scientists and issued the results on the publication. Here are some typical foreign research: C. Lonsdale, J. Sanderson and G. Watson, 2002, Supply Chain, “Markets and Power: Mapping buyer and supperlier power regimer”; Dr Gerd Wolfram, 2003, “Metro group: Future store initiative”; Coriolis Research, 2004, “Tesco: Case Study in Suppermarket Excellence”; Anitha Y Institute of Information Technology Bangalove Electronic City, 2004, “7 ELEVEN An Enterprise Case Study”; David SimchiLevi, Philip Kaminsky & Edith SimchiLevi, 2004, “Managing the Supply Chain”; Ling Li, Old Dominion University, USA: “Supperly Chain Managerment: Concepts, techniques and Practices Exchangcing Value Throught Collaboration”; Fels, Allan: “The administraion of retail The lesson from the developing countries”, Asia Pacific Business Review, No.1, 2009; Tsinnopoulos, C. Durham University Bussiness School, Mena, C. Cranfield University, 2010, “Competing Supply Chain Stratergier: Tesco, Aldi and Liddl” 1.2. Domestic research: Up to now, our country has had some researches of the different angles on the retail, retail services, services for modern retail distribution, the types of modern retail organization, Some typical research works related to the topic of the dissertation: Assoc. Ph.D. Le Trinh Minh Chau, "The solutions to developing the system for Vietnam goods distribution in the context of international economic integration", the ministrylevel scientific theme, 2002; Ph.D. Nguyen Thi Nhieu "The status and solutions to developing the system of supermarkets in our country in the current period", the ministrylevel scientific theme in 2005; MA Le Minh Chau, "The solutions to developing the system of transport convenience stores in chain in Vietnam by 2010", the ministrylevel scientific theme in 2005; Ph.D Nguyen Thi Nhieu, "Researching wholesale, retail services of some countries and the ability in applying into Vietnam", the ministry level scientific theme in 2007; Pham Huu Thin, "The solutions to developing different kinds of civilized and modern retail organizations in Vietnam", doctoral thesis in economics, 2008; Ph.D Tu Thanh Thuy, "Finishing the business environment in order to develop wholesale, retail services of Vietnam", the ministrylevel scientific theme, in 2009; Pham Hong Tu, "Developing retail market for consuming goods in rural Vietnam in the period 2010 2020", doctoral thesis in economics, 2011; Nguyen Thanh Binh, "Finishing the development policy about distribution services for retail outlets in Vietnam in the period of integration", the doctoral thesis in economics, 2012; 2. Problems still exist in the relevant researches and the direction of dissertation research Generally, these research works have had the contents related to the research theme of the dissertation. Doctoral fellows can inherit the results of research to solve a number of research contents of the theme such as: the concepts of retailing; modern retail; some problems about the theory and the practicality for developing distribution channels in general, retail and modern retail in personal However, no research works about developing modern retail agencies associated with the socioeconomic conditions of Phu Tho province This research focus on clarifying the developing path of the network of the modern retail outlets based on the specific conditions of Phu Tho province 6 THE CONTENT, RESULTS OF THE RESEARCH Chapter 1 THEORY ON CONDITIONS TO DEVELOP THE NETWORK OF MODERN RETAIL OUTLETS AGENCIES ON THE MARKET AREA OF A PROVINCE 1.1. The concept and types of modern retail agencies 1.1.1. Some concepts 1.1.1.1. Concept of retail: Retail is understood that: selling with a small volume, selling directly to consumers, selling goods and services which are concerned, consumers buy to cater for the needs of individuals and households, not for the business, retail is the last part in the circulation to bring the products to consumers, retail at a fixed location, or not fixed and through other services 1.1.1.2. The concept of modern retail: Modern retail is the type of retail which has high professionalism in organization and management, business operation, has been applied modern technologies in retail operations in order to satisfy the needs of shopping and the customer's consumption 1.1.1.3. The concept of modern retail agencies: Modern retail agency was understood as the general name for the units which have necessarily fixed location and space to make retail operations with professionalism in management and business operation as well as the application of modern science and technology to meet the needs of customers. 1.1.1.4. The concept of the network of modern retail establishments: The network of modern retail agencies was understood to be the basis of the provision of modern retail services on a certain geographical area. Within the scope of this dissertation, the network of modern retail agencies includes: The system of supermarkets, commercial centers, shopping centers and convenience stores 7 1.1.2. The types of modern retail The types of modern retail business have been defined including: Convenience stores, supermarkets, trade centers, shopping centers, 1.1.3. Developing a network of modern retail agencies 1.1.3.1. The concept of development of modern retail facilities: Developing a network of modern retail agencies is the process of promoting all aspects of modern retail agencies, is the tight combination between the growth process in number, scale, diversification of the types with the process of perfecting the characteristics of each type of modern retail to satisfy diversified shopping needs of the consumer objects and ensure effective business operations of the retail enterprises, at the same time, to meet the common objective for the development of society 1.1.3.2. Evaluation criteria for the development of the network of modern retail agencies: (1) In the macro range, the criteria identified includes: the level of growth, the scale, density and structure of the types of modern retail agencies on the area; implementing the development goals and the impact of modern retail agencies; (2) In the micro range, including the criteria: civilization, modernization of modern retail agencies; the competitiveness of modern retail agencies; the ability to contact with customers of modern retail agencies; the level of completion about the characteristics of modern retail agencies 1.2. The conditions to develop the network of modern retail trade in the market of a province. 1.2.1. Conditions on policies and laws of the state This is a crucial factor to the formation and development of modern retail agencies. Its role for the development of network of modern retail agencies is expressed as follows: (1) Creating the business environment and competition for the subjects engaged in the retail market; (2) The impact on the effectiveness of the investment in construction and operation of the contribution agencies for modern retail. 1.2.2. Conditions of economy Economic development is the prerequisite condition for the development of modern retail service. The economic development of a province is evaluated through the pace of industrialization and urbanization of that province. The development of network of modern retail agencies was attached to the process of industrialization and urbanization of the local area. Economic development will improve the standard of living and income of local consumers, it is an important target for enterprises to decide whether to open the modern retail agencies or not. Total level of retail consumption and services is also the basis for building business agencies to modern retail 1.2.3. Social conditions The scale, characteristics and speedy growth of population along with the living standard of people is one of the most effective factors on the development of the modern retail service. This is the factor both for labour supply and determinants to demand, consuming level for local goods. Customs or shopping habit is also one of the necessary conditions for developing a network of modern retail agencies in a province. The modern retail agencies often learn carefully shopping trends of the residential areas that they have intention of investing and building retail agencies 1.2.4. The conditions of nature, technical infrastructure The conditions of nature, technical infrastructure have a direct impact on the selection of the area and defining the space, location to set up the modern retail agency, including the conditions of the terrain, geographic location, economic conditions, traffic conditions, information, the land fund… Infrastructure, natural conditions also impact on the cost of construction investment, business of the modern retail agiencies 9 1.2.5. The conditions of science and technology Scientific factors decide and govern the application of science and technology into the business operation of the modern retail agencies. Business service for modern retail must rely on the basis of science and technology as the application of software management, marketing, promoting products and services,… The experience of some countries about developing the network of modern retail outlets agencies The dissertation has carried out researching the experience of China, Thailand, Japan in developing distribution service for modern retail in general, the development of the network of modern retail agencies in particular, from that, to draw five experienced lessons which can be applied in order to develop the network of modern retail outlets agencies on the area of Phu Tho province Chapter 2 ASSESSING THE STATUS AND CONDITIONS FOR DEVELOPING THE NETWORK OF MODERN RETAIL AGENCIES ON THE AREA OF PHU THO PROVINCE 2.1. Assessing the status and conditions affecting the development of the network of modern retail business in Phu Tho Province 2.1.1. Conditions of nature, geographic location of Phu Tho Province 2.1.1.1. Geographic location, terrain characteristics, climate: Phu Tho province is located in the mountainous area, the Northern Midland, in the area between the Northeast, Red River Delta and the Northwest. The East borders on Hanoi, Northeastern with Vinh Phuc, Son La in the West, the Northwest borders on Yen Bai, the South by Hoa Binh, the North with 10 Tuyen Quang Phu Tho terrain is divided and subdivided into small high mountains and low mounds and hills. Phu Tho's climate is tropical climate 2.1.1.2. Resources: The resources of Phu Tho are rather abundant. However, the dissertation only refers to the four groups of the main resources: land resource, forest resource, mineral resource and tourism resource. 2.1.1.3. General evaluation: a) Advantages: With its geographic location, Phu Tho has conditions to exploit and expand retail market, to create conditions for developing modern retail agencies The potential of resources is the premise for the development of manufacturing and service, creating conditions for the development of the market of goods and services, and thereby, facilitate to develop the network modern retail agencies b) Difficulty: Phu Tho's terrain was separated which caused difficulty for cargo transport, limiting the attraction of investment to build modern retail agencies in the region, especially in the remote areas. Mineral reserves are low, the fertility of the soil is not fertile and high that limits the ability in producing goods of the province. Thus, the resources for the goods supply for modern retail agencies are restricted 2.1.2. Assessing the status of mechanism, policy, law 2.1.2.1. The status of the policy for developing distribution services for modern retail The policy for developing the netwwork of modern retail agencies includes the system of mechanism, policies of the State and province about developing the distribution service for modern retail, comprising of the groups of the following policies: The policy of open market for retail distribution; trader development policy in the field of retail distribution services; policy, land usage planning for the development of modern retail agencies; the preferential policy and investment support for projects of investment and development of the 11 infrastructure for modern retail distribution service; policies for developing the forms of modern retail distribution service 2.1.2.2. Assessing the status of policies and laws a) Success: The issued policy expressed clear trends for retail trade liberalization, transparency, fair competition, easy prediction; expressing the support resources for developing modern retail distribution service, gradually raised the competitiveness of Vietnam's retail industry. This has spurred the development of the network of modern retail agencies of the country as well as on the area of Phu Tho Province b) Limitations: haven’t yet handled the relationship between developing the distribution network for traditional and modern retail; support policies, encouraging infrastructure development for modern retail distribution service is limited and has low feasibility; assigned and defined functions, the task of the State management on retail market is still unreasonable, not obvious, overlapping; the force of a specified number of rules is not high due to lack of guidance documents about implementing in reality 2.1.3. Economic conditions in Phu Tho Province 2.1.3.1. The economic status of Phu Tho Province The dissertation has raised economic development status of Phu Tho Province in the 20062013 period on the following specific areas: economic growth, economic structure and per capita income; industryhandicraft; agriculture, forestry and fisheries; the service sector; and commercial activities 2.1.3.2. Assessing the status of economic conditions a) Situation: With the growth of the economy as above, Phu Tho has condition to strongly take part in integration and will be good conditions to attract investment in infrastructure construction and modern retail distribution; the shift in the economic structure has expresses the trend of industrialization, the urbanization of the province, creating the premise for the development of the modern retail distribution service in Phu Tho; 12 The per capita income is increasingly being improved, which is the favorable conditions for the development of modern retail agencies; trade of retail goods and social services of the province in the past few years has continuously increased, showing the growth of the retail market, here is the element of attracting investment in developing modern retail agencies. b) Difficulty: Phu Tho is still the poor mountainous province, with low per capita income. This will be the inhibitive object for the development of modern retail agencies in Phu Tho Province 2.1.4. The social conditions of Phu Tho Province 2.1.4.1. The status of social conditions in Phu Tho Province The dissertation refers to the economic and social conditions of Phu Tho Province in the two factors: population and labours. 2.1.4.2. Assessing the social conditions of Phu Tho Province a) Advantages: The shift from rural dwellers to urban ones will alter the customs as well as consuming habits of a division of the people, will be the premise for modern retail agencies to develop; the abundant supply of manpower for developing modern retail distribution service; the structure of labor is shifting to the industrial sector and service, raising the number of people who have high and stable income from wages and salaries, changing the style of spending of a group of people from the traditional consumers to the modern ones, facilitating the development of modern retail agencies b) Difficulty: The majority of the population live in rural areas, mainly in labor sectors of agriculture, forestry, fisheries, low income and living standards, habits and consuming customs still follow the traditional method, will impede the development of network of modern retail agencies in Phu Tho Province; the number of trained workers to meet the requirements of modern retail agencies has limited, which would cause difficulties in the recruitment of workers in modern retail enterprises in the region as well as the development of the network of modern retail agencies in Phu Tho 13 2.1.5. The conditions of the infrastructure, technology of Phu Tho Province 2.1.5.1. The status of infrastructure, technology of Phu Tho Province The dissertation showed the reality of conditions about the transport infrastructure, urban infrastructure and industrial zone and information technology infrastructure, telecommunication 2.1.5.2. Assessing the conditions of infrastructure, technology of Phu Tho Province a) Facilitation: The development of transport infrastructure, the town of the province is a good condition for creating the favourable position of the economic location for investors to build the modern retail agencies The development of the infrastructure of information technology and communications of the province also creates conditions for modern retail business to apply new technology into serving their business activities; industrial zones are expanded to create more jobs, income for workers, leading to the change in consuming habits, creating the premise for the local modern retail sector to develop, promote the formation and development of the network of modern retail agencies b) Difficulty: The province's transportation infrastructure has not been finished, creating bad impact on the business operation of modern retail agencies, causing limited investment in this field; accessing to the business premises for modern retail in the city is quite difficult, which will limit the development of the network of modern retail agencies. 2.2. The development status of retail agencies on the area of Phu Tho province 2.2.1. Status of development of traditional retail establishments 2.2.1.1. The development status for market By the end of 2013, the whole province has 221 markets/277 communes, wards and towns, has an average of 9.7 markets/communes, wards and towns. Of which there are third firstclass markets, ten second class markets and 136 thirdclass markets. The market scale is generally 14 small and medium, construction area is uneven. The markets’ main functions are to buy retail outlets for residents in the province. The force involved in most of the local business market includes mainly individual business In general, the local market has partly met the demand of goods traffic as well as the consumption of agricultural goods and the supply of essential items for residential life. However, some points still exist such as: distribution is also irrational, spontaneous, simple outlets, With the current existence of market system in Phu Tho Province, the development opportunities for the type of local modern retail is huge 2.2.1.2. The status of the traditional retail outlets system On the area of Phu Tho province, it is estimated that there are more than 400 retail stores as traditional business This is one of the important goods distribution channels involved in the retail market in the past time However, the business activities of these stores are having difficulties in the capital, business premises, the development of modern retail agencies, With these difficulties, the media retail stores in the province are considering downsizing the business scale to survive or even stop trading to avoid losses This is a good opportunity for the utility store to develop chain business 2.2.2. The status of developing modern retail agencies 2.2.2.1. The status of developing commercial centers, supermarkets Formed but the urrently commercial center network in Phu Tho is spare, small scale. there is only one commercial centre in Viet Tri City, thirdclass scale, is being built in parts, has not been in operation and three other commercial centers with licence of construction but have not been built. Supermarket system in the province also have been clearly developed, currently there are 11 supermarkets in the province The trade centers, supermarkets are uneven, developed spontaneously. The supermarkets with small scale of area, equipment have not been modernized 15 In general, the deployment for developing network of commercial centers, supermarkets has not been so good, the reality of the development is still spare Therefore, we need to have reasonable development orientations to later operation in system, effectively, bring benefits for the society as well as for the general economic growth and development of the business kind for modern retail outlets in particular. 2.2.2.2. The development status of the convenience stores Selfcontrol retail stores have been formed in recent times. However, compared to the potential, convenience store system in Phu Tho has been suitably developed. The amount of stores is too little, distributed unevenly. Besides, the business scale of the stores in Phu Tho is still small, a small area of business, which does not meet the shopping needs of the customers Chapter 3 THE SOLUTIONS TO DEVELOP THE NETWORK OF MODERN RETAIL BUSINESS IN PHU THO PROVINCE 3.1 Forecasting the trend of the factors and conditions for developing the network of modern retail business in Phu Tho Province 3.1.1. The development trend of the retail branch and modern retail types 3.1.1.1. The development trend of the retail branch and modern retail types in the world: (1) The competition between the agencies of the same type and among types of retail organization has become stronger and stronger, which led to the disappearance of the traditional retail kinds with small scale and the appearance of more new modern retail types; (2) retail turnover without through the stores is increasingly accounting; (3) trends for self addition to items, the business services of the modern retail types; (4) The multinational retail corporations continued to implement strategies to expand global operations; (6) the volume and the share of store types are descending; 16 (7) Department store types tend to grow slowly and come down; (8) Franchise was and has become a popular and effective method; (9) Information technology plays an important role in the effectiveness of shipping of the retail enterprises as well as meet the needs of the convenience of the customers 3.1.1.2. The development trend of modern retail branch in Vietnam: (1) Increasing investment in the development of modern retail agencies with small scale and a chain of stores, especially a chain of stores with small scale; (2) the producers themselves invested and built the store, expanded the network to sell their products, enterprises in other sectors invested to develop consuming retail system; (3) The domestic retail enterprises link together all over the country 3.1.2 Forecast the trend of the development conditions for modern retail agencies on the area of Phu Tho Province by 2020 3.1.2.1. Phu Tho socialeconomic forecasting by 2020 Phu Tho will become the regional economic center, the important hub of regional transportation By 2020, Phu Tho will have basically achieved the criteria in the industry of the province Specifically: Accelerating the pace of economic growth to exceed GDP/person compared to the whole country; Economic structure transformation in the direction of increasing the proportion of industry and services; Export turnover in the year reached 500 530 million USD in 2020 3.1.2.2. The forecast the development of traffic system by 2020 Highway projects have been completed, the provincial road was upgraded and expanded towards the modernization. A number of roads in the industrial zone, urban area and important economic zone reached level 3 to level 2. The town road was improved, upgraded following the urban road standard; 100% of the district, town, ward road has been plasticised and hardenised 100%; Developing railways and waterways according to the approved plan 2.1.2.3. Forecast the development of population by 2020 17 In the period from now to the year 2020, the annual population growth rate of the province will tend to decline. Forecasting the scale of the general population of the province increased by an average of 0.77% per year in the period from now to the year 2020, the population of the urban areas in the period 20152020 will increase 7.5% per year Table 3.1: Forecasting the population of Phu Tho province Unit: thousand people Increasing rate for 2005 2010 2020 20112020 (%/year) Total population 1.326,8 1.380 1.490 1500 0,77 1. Urban area 208,4 314,6 625 630 7,5 % over a total of 15,7 22,8 42,0 1.118,4 1.065,4 864 870 84,3 77,2 58 2. Rural area % over a total of 2,19 (Source: Phu Tho statistics Almanac 2013, calculated by the author) 3.1.2.4 Forecasting the income and the buying fund of Phu Tho inhabitants by 2020 Table 3.2: Forecasting the income and the buying fund of Phu Tho inhabitants Value Unit 1. Average income (person/monthproduction) Average income (person/monthproduct)) Total residential income /monthproduction 1.000 VND 1.000 VND Billion VND 2015 2020 1.127,3 2.347 26.400 50.700 1.556 3.497,1 Increasing rate for 20112020 15,8% 16,5% Total residential income /monthproduct Total residential buying fund /product 18 Billion VND Billion VND 36.960 75.543 20.328 37.771 (Source: Phu Tho statistics Almanac 2013, calculated by the author) The per capita income per month of Phu Tho in the period 2011 2020 increased 15.8% per year, reaching 2.347 thousand VND/month in 2020. The actual prices, predicts per capita income /a year will be about 5060 million VND in 2020. The Fund for buyin goods of Phu Tho will account for 55% of the total income in 2015 and 50% by 2020. 3.1.2.5. Forecasting the total level and structure of shipping goods and the turnover of social services in 2020 Forecast the growth of goods retail trade and the turnover of social services of the province will annually increase about 24.1% per year in the period 20162020 Table 3.3: Forecast goods retail trade and the turnover of social services in Phu Tho province Đơn vị 2005 2010 1. Goods retail trade and million the turnover of social VND 3.190,3 9.932,4 services 2. Goods retail trade and 1.000 the turnover of social VND 2.404,5 7.509,4 services average/person 2015 2020 19.913,1 58.613,6 13.886,4 39.338 (Source: Phu Tho statistics Almanac 2013, calculated by the author) 3.2 The viewpoint on developing the network of modern retail business in Phu Tho 3.2.1. Development viewpoint Some of the main points: development must be based on and consistent with the general development trend of the retail branch and adapt to 19 the socioeconomic conditions, customs, consuming habits, income and living standard of consumers in each locality in the province; development is based on the diversity and synchronization about the type, scale, method of operation, form of ownership and economic participation; Taking notice of developing the modern retail agencies with small and medium scale, ensuring harmonious development, healthy competition between the modern retail agencies and traditional retail agencies, between the agencies in each modern retail form together; development must go hand in hand with the implementation of the type standard, design standards and mechanisms; the development must ensure the system based on the linkages in the process of flowing as well as between the circulation with production and consumption 3.2.2. The orientation to develop the network of modern retail business in Phu Tho Province Some fundamental principles: The development needs to be consistent with the building plan, according to the requirements of population distribution, consumption demand, transportation, cultural landscape, environmental protection combined with the development of the manufacturing sector and the socioeconomic development of the province; determine a reasonable structure, the scale, the number of the modern retail agencies; developing the network of modern retail agencies is based on many criteria, such as: market, the residential density, income and buying power, location, scale, structure, method of trading, targeting of consumers, 3.3. The orientation to develop the modern retail agencies in Phu Tho province 3.3.1. The orientation of modern retail kind Phu Tho needs to take priority to and further promote the development of some modern retail types as follows: convenience stores, supermarkets, trade centers, shopping centers. These types must follow the chain operation or be formed on the basis of the development of chain stores. 20 Taking the franchise method to do mainstream methods to grow the chain of convenience stores. Each step of the metabolism of small scale markets in the city areas into retail agencies in the direction of civilization, modernization 3.3.2. The orientation of planning Planning to build modern retail agencies must ensure enough space for the development and avoid retail agencies too close together, which leads to unfair competition Land usage planning for the development of modern retail agencies. 3.3.3. The orientation of the investment owner of the modern retail agencies Irrespective of the types of business and economic sectors in the construction investment and modern retail agencies. Before that, primarily drives corporations and retail enterprises in the country to invest in building and shipping business of modern retail agencies with small and medium scale located in the residential area, the inner city, urban area 3.3.4. The orientation of infrastructure construction for modern retail agencies Infrastructure of modern retail agencies must ensure adequate standards of ground area, information systems, management software as well as interior and exterior equipment In addition, the layout and building design of retail agencies must fit the purchasing characteristics of consumers. 3.3.5. The orientation of State management for the network of modern retail agencies should focus on the following contents: Construction, directing and inspect, monitoring the implementation of the standard types and development of the modern retail agencies; materialize and institutionalize the navigation and solutions to the construction and implementation of relevant policies; finish the system of recommendations, policies, laws related to the network of the modern retail agencies 21 3.3.6. The orientation to develop some types of suitably modern retail agencies in Phu Tho province by 2020 Based on the situation of socioeconomic development of each particular locality in the province and the related legal texts, the dissertation has given specific direction on the layout for the network development, commercial centre, shopping centres, supermarkets and convenience stores (see appendices 1, 2, 3 of the thesis) 3.4 Some solutions for developing the network of modern retail business in Phu Tho Province 3.4.1. Enhancing the efficiency of development planning for retail network Planning should focus on the following directions: Taking priority on land, the infrastructure for the development of distribution agencies in the mountainous and remote areas; encourage to open supermarkets, shopping malls, trade centers, convenience stores in urban areas; encourage the metabolism of the convenience stores in the city area, the traditional retail stores into the modern retail agencies 3.4.2. Improving the policies to develop the modern retail business The dissertation proposes solutions to improving three groups of policies as follows: (1) improving policy, legislation on opening the retail market; (2) improving policies to attract investment in developing the modern retail agencies; (3) improving the development policy of the modern retail types; 3.4.3. Improving the efficiency of State management for the network of modern retail agencies across the province Specific measures: managing the business operations of commercial centers, shopping malls, convenience stores and supermarkets in accordance with law; Implementation of training organizations, professional training for the business subjects on the area of the province; Make good work of checking and handling with violations severely of modern retail agencies; implementing its central role to create the connection string; promote the 22 work of trade promotion and building branding for modern retail branch; the innovation of methods and management tools 3.3.4. The solutions to human resource development Supporting and encourage enterprises to train the labor team with enough business knowledge, the knowledge about safe explosions, food safety and hygiene. Investment in human resources development, raising the professional level of team business, labor, and business management in modern retail branch. 3.3.5. The infrastructure solutions for developing the modern retail agencies Building information system that serves for the management of the State and business orientation; Commercial infrastructure upgrades and technology in order to create the conditions for businesses to do business in the field of local investment in modern retail sector; Provides a way for maximum business for modern retail business by leasing land policy, policy support and training of human resources and technology transfer; Consider modern retail agencies is part of the overall infrastructure modernisation projects as well as the development of urban areas and new residential areas; Clearance support, create the infrastructure for those units invested to build the retail facility in the direction of modern civilization, in the rural market 3.3.6. A number of solutions to the enterprises For business enterprises for modern retail distribution service in Phu Tho, the thesis proposes the following solution groups: (1) construction planning, development plans, projects and specific implementation solutions; (2) strengthen links between enterprises; (3) convert the style activity, active style construction and professional service; (4) to cut the cost of building and operating the business; (5) investments in the rural market CONCLUSION 23 Modern retail is a fairly new distribution forms in Phu Tho province. Although the market share of this type of business is currently lower than that of traditional distribution type, however, with remarkable advantages in many aspects, can confirm the growth and dominated the retail market of modern retail distribution system of Phu Tho province in the future not far away is the an indispensable objective when it is only with respect to the traditional form of business with low range will no longer match the industrial environment and the municipalities of the province. Along with the development of the network of modern retail agencies in the province However, practice shows, the network of modern retail agencies in the province currently is poorly developed, showing: the number of modern retail agencies is low, the irrational distribution of scale, as well as mounting of the base is not high, The thesis has researched systematically based on conditions for developeing the network of modern retail outlets on the area of a province; analysis, assessment of the State of network development conditions of modern retail agencies as well as the status of developing retail agencies in Phu Tho province; and proposes a number of solutions in order to develop the network of modern retail agencies in Phu Tho province by 2020. The main results of the thesis are the following: First, to clarify the basis of the reasoning of condition for the development of the network of the modern retail agencies in the province, through the introduction of a number of related concepts such as "retail", "modern" retail, "modern" retail establishments, "developing modern retail network". Analyze and provide these arguments about growing conditions type of modern retail on a geographical space is a province. The thesis has proven: To develop the network of modern retail establishments should have the following conditions: there is a system, mechanism and policy of 24 comprehensive development services distribution of modern retail, the economy must grow at a certain level about the environment, sociocultural, natural conditions, infrastructure as well as engineering science and technology to meet the requirements. Besides, the dissertation has to learn the experience of modern retail business development of China, Thailand, Japan and draw the lessons that can be applied to the process of development of the network of modern retail agencies in Phu Tho province Second, the analysis of the reality of the conditions for developing the network of modern retail agencies in Phu Tho province, the thesis has given some reviews about the real situation there. Clearly, with the existing conditions, the development of the network of modern retail agencies in Phu Tho province in the future is inevitable. Through analysis and interpretation status, the thesis also shows that the detrimental factors to the development of the modern retail outlets network in Phu Tho province. This is the basic argument to propose measures aimed at limiting the factors it also snows there, create conditions for the development of the network of modern retail agencies in Phu Tho in the future Third, to build the system of solutions to developing the network of modern retail agencies in Phu Tho province, the thesis forecasted development trend of the retail branch and the type of the modern retail world and Vietnam, raised the perspective, principles and orientation for the development of the network of the modern retail agencies in Phu Tho province. On that basis proposes six groups of solutions in order to promote the development of the network of modern retail agencies in Phu Tho province in the period from now to 2020, that is: strengthening the effectiveness of the planning; Complete solution of mechanisms, policies; Solutions to improving the effectiveness of State management for network of modern retail agencies; The solution to human resource development for modern retail development; Infrastructure solutions for the developing modern retail agencies and a number of solutions on the business side ... and draw the lessons that can be applied to the process of development of the network of modern retail agencies in Phu Tho province Second, the analysis of the reality of the conditions for developing the network of modern retail agencies in Phu Tho province, the thesis has given some ... pratical issues on developing the network of modern retail outlets on the area of Phu Tho Province. 3.2. Scope of the study: (1) The scope of time: Reviewed the conditions for developing the network of modern retail outlets in the period from ... THE SOLUTIONS TO DEVELOP THE NETWORK OF MODERN RETAIL BUSINESS IN PHU THO PROVINCE 3.1 Forecasting the trend of the factors and conditions for developing the network of modern retail business in