Foreign retail chains can be a new channel to sell abroad: insiders

April 23, 2022 | 16:00

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Many Vietnamese firms are trying to display their products in foreign supermarket chains to sell them abroad, but it is not an easy task, according to insiders.

Foreign retail chains can be a new channel to sell abroad: insiders

Visitors to an exhibition booth on the sidelines of the seminar on April 21. (Photo: VNA)

Hanoi-Many Vietnamese firms are trying to display their products in foreign supermarket chains to sell them abroad, but it is not an easy task, according to insiders.

To Huynh, a leading member of Surifarm Organic Vegetables LTD., anticipates that his firm’s dry foods would easily satisfy customers in other regional countries.

However, it was quite difficult to export the foods to those countries via supermarket chains, due to stiff local competition and high logistic costs.

High logistic costs put obstacles in the way of small firms trying to enter foreign markets, he said.

The firm leader also said that big companies would copy small firms' strategies once they saw the latter earning high profits in the markets.

As a result, small firms entering new markets via retail chains would end up competing with both local producers and big names.

Nguyen Thi Thu Hien, external relations manager of Central Retail Vietnam, underlined technology as the key to cost optimisation and better supply chain management.

She recommended that Vietnamese firms accelerate technology applications to cut costs further and improve product quality to boost their coverage in foreign retail chains.

Health, environmentally-friendly and local products are becoming more appealing to customers of all segments, she said.

Truong To Uyen, director of the purchasing department of a foreign retailer, revealed that Vietnamese firms had to go through four stages before their products could be put on sale in foreign supermarkets.

The four stages include dossier approval, negotiation and signing contracts, adding the supplier data to the system, and order and delivery.

VNA

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