From Traditional to Modern Market: The Transition in Vietnamese Traditional Bazaar System

Viet Trung Le
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With the failure of central planning mechanism, Vietnamese government has recognized that an economy can work well when only much of it is left to markets. Doi Moi (Renovation) policy and the successive introduction of market economy since 1986 have produced stunning results. When the economy was opened up, markets, shops and private trade have mushroomed. Markets (bazaars) are spontaneously developed everywhere. Bazaars become “central hub” for trade activities and “central distribution system” for goods and products.

However, Vietnamese bazaar system has been increasingly criticized as the inefficient, in backward and complicated system, that makes circulation of goods extremely difficult and incurs unnecessary transaction costs. The aim of this paper is to elaborate this criticism. A crucial area - “the Vietnamese bazaar system” is extensively analyzed and the determinants that have made these markets work inefficiently are clarified. Then, we show the recent structure change from a long prevalent traditional bazaar system to modern distribution system, the system which is formed by supermarkets, shopping malls and department stores. It is shown that there are many factors supporting this optimistic change, as well as there still exist many problems. The modern network could eventually changes the way Vietnam’s goods/products supply chain operates. However, it appears that there is room for both the old and the new to coexist.

Keywords: Bazaar, Market, Supermarket, Distribution
Stream: Economic Sustainability
Presentation Type: Virtual Presentation in English
Paper: A paper has not yet been submitted.

Viet Trung Le

Kobe Univercity, Graduate School of Business Administration
Viet Nam

Name: Le Viet Trung
Date of Birth: November 4th 1975
1992-1996: Hanoi National Economic University (Bachelor of Economics)
1996-2001: Worked at Economic Department of Vietnam Petroleum Institute
2001-2004: Studied at Graduate School of Business Administration, Kobe University (Master of Business Administration)
At present I am in the second year of doctor course at Graduate School of Business Administration, Kobe University

Ref: S06P0244