Unlicensed street vendors in the south China city of Guangzhou might soon be able to come out of the shadows, as authorities are mulling over a plan to set up flea markets where they will be able to tout their wares openly.

The standing committee of the city's people's congress heard a second reading of a proposal on the subject on Tuesday, and a decision is likely to be made in two months' time, the committee said.

Unlicensed vendors have long been a part of daily life in Guangzhou, providing its people with everything from food and clothes to toothpaste and toilet paper.

However, the fact they are unofficial, means they are also unmonitored, which regularly leads to problems with traffic congestion and garbage-filled streets.

On the rare occasions when officials are sent to disperse vendors, disputes between the two groups often ensue.

In a bid to bring order to the situation, earlier this year, a group of deputies of the city's people's congress proposed the setting up of flea markets, and also called on city administrators to be more respectful in their dealings with the vendors.

On Tuesday, the committee agreed in principle to the proposal.

"The government will try to set up flea markets," Chen Xiaoqing, director of the legislative committee of the Guangzhou people's congress, said at the session.

"Suitable sites will be chosen for the markets and vendors will be allowed to set up stalls at designated times."

The markets could provide a viable solution to the problems associated with unlicensed traders in the city, she said.

The committee also said that city administration staff must show their identity certificates when dealing with unlicensed vendors, and reiterated that all forms of intimidation toward them is strictly forbidden.

The proposal has been well received by those who work in the trade. Lin Jinhua said he and his wife have been working as unlicensed vendors since losing their jobs.

"If we can set up a stall in a flea market, we will have a more stable income and a better work schedule," he said.

Editor: Yan