Foreign retailer giants look for Vietnamese suppliers

A corner of Aeon Mall supermarket (Photo: VNA)

Hanoi – The Vietnam International Sourcing 2023, which will be hosted by the Ministry of Industry and Trade (MoIT) from September 13 – 15 in Ho Chi Minh City, is expecting to attract about 150 business delegations from 30 countries and territories worldwide.

The event aims to support domestic firms to engage more deeply in global production and supply chains.

According to the MoIT - the organiser of the event, many foreign supermarkets, distributors and retailers are making their shopping list for products from Vietnamese suppliers at the event, which is expected to connect foreign importers and domestic manufacturers and exporters.

It will offer a good chance for foreign firms to seek suppliers across fields from foods, textiles, footwear, housewares, furniture and support industrial products.

Christian Merizalde Aguilar, in charge of business strategy at Grupo Merica Foods, stated that the firm is currently shifting its business operation from Thailand to Vietnam.

The company planned to import around 110 cargo containers from Vietnam in 2023, a significant increase compared to 77 last year.

According to Aguilar, the quality of Vietnamese goods is continually improving and becoming highly competitive. In the future, Grupo Merica Foods will collaborate directly with Vietnamese producers to jointly develop production and supply plans of products that align with the demands of the international market.

Vietnam's joining in 16 free trade agreements is a significant attraction for potential buyers, he said.

Nguyen Duc Trong from Walmart Group said Vietnam will become a key outsourcing hub in Southeast Asia and Asia of the firm.

By 2027, Walmart’s purchasing market share in Vietnam is expected to increase, not only for clothing and footwear but also for various other products, and not only foreign-invested firms but also local companies, Trong said.

Vietnam is among the top five countries exporting the most goods to the Walmart system, with key products including textiles, warehouse products, electronics and processed foods.

The US retailer will focus on buying products in six groups at the Vietnam International Sourcing 2023, including clothing and accessories, footwear, textiles and accessories, electronics and furniture, foods and consumer goods.

Meanwhile, Aeon Group from Japan announced that representatives from its systems in China, Japan, Thailand and Malaysia aim to seek producers in Vietnam that can meet Aeon’s standards to become sustainable suppliers of the Japanese retailer.

The stability in Aeon’s supply chain is ensured to by various suppliers in Vietnam.

Vietnam has been undergoing a robust transformation to become a global production hub, which is capable of supplying a wide range of products with competitive pricing and continually improving quality.

To join the billion-USD value chain of Walmart in the international market, Vietnamese businesses need to pay attention to building strategies with long-term target, solutions for supply chain and logistics, and the ability to design and develop products.

Walmart also takes note of important factors when evaluating suppliers in Vietnam, including supply capacity, financial stability, sustainable development, and adherence to environmental commitments.

Retailers ramp up promotions to boost sales As consumers are tightening their budgets, retailers are initiating a broad range of promotions to boost sales.

South Korean retailers extend reach South Korean companies are showing significant interest in Vietnam’s flourishing retail sector, seeking to seize opportunities presented by the nation’s robust economic growth and sizable working-age population.