Walmart deepens ties with Vietnam to strengthen supply chains

Recognising Vietnam's latent potential to amplify its supply chains and augment its global footprint, Walmart is poised to further deepen ties with the Southeast Asian nation.

This interest in Vietnam was echoed by Walmart's deputy CEO, Avineesh Gupta, who is attending the Vietnam International Sourcing Expo 2023 event in Ho Chi Minh City from September 13 to 15.

Following Gupta's keynote on the September 14, Vietnamese suppliers will be accorded a rare opportunity for direct discourse with the retail behemoth during dedicated networking sessions.

According to the National Retail Federation, Walmart stands tall as America's largest retailer, boasting a staggering turnover exceeding $600 billion globally last year – a figure that doubles that of the second-placed Amazon. Within the United States alone, it operates an impressive 5,330 outlets.

Given its stature as America's top retailer, Walmart's decision to engage so directly with Vietnam bears significant weight.

This sentiment is mirrored by Vietnam's Deputy Prime Minister Tran Hong Ha, who regards Walmart's overtures as a testament to the strengthening Vietnam-US relations, further solidified during the recent state visit by US President Joe Biden.

Walmart's engagement with Vietnam isn't a new chapter. With significant investments and an established export-driven supply chain already in place, the company's ethos aligns seamlessly with Vietnam's dynamic landscape.

As Gupta put it, "The dedication, innovation, and agility we've seen in Vietnam resonate deeply with Walmart's global vision."

In May, VIR reported that Sarah Thorn, senior director of Global Government Affairs at Walmart, divulged that Vietnam presently ranks among the top five nations that contribute to Walmart's extensive system.

“Given the mounting risk of supply chain disruptions stemming from pandemics and geopolitical conflicts, Walmart is seeking the unwavering support of the Ministry of Industry and Trade to fortify and expand the resilience of its supply chain within Vietnam,” Thorn noted.

Gupta also highlighted the favourable policies from the Vietnamese government, enabling the seamless formation and operation of supply chains catering to global markets, spanning the textile, consumer goods, and food sectors.

"There's a palpable eagerness from Walmart to assimilate Vietnamese small- and medium-sized enterprises into its e-commerce network," he said.

Beyond Walmart, giants like Japan's AEON and Uniqlo, America's Amazon, France's Carrefour and Decathlon, Thailand's Central Group, Mexico's Coppel, Sweden's IKEA, and the UAE's LuLu Group have also signalled their intent to forge deeper trade links at the event.

Bond mobilisation needed for Ho Chi Minh City infrastructure To realise its ambition of becoming Southeast Asia and Asia’s leading hub in multiple sectors, Ho Chi Minh City must bolster its infrastructure. With the city’s budget only covering 30-40 per cent of infrastructure costs, amidst an economic slump, there is an urgent need to devise strategies to entice international financing, potentially through bonds. A future financial centre could also be instrumental in this endeavour.

Compromising ESG efforts must be averted in Ho Chi Minh City Ho Chi Minh City finds itself at a defining crossroads. As the heart of Vietnam’s bustling southern region, the city faces the challenge of navigating its path, aligning industrial expansion with sustainability commitments.

Vietnam ranks among top exporters to global supply chain of Walmart Vietnam's pivotal role as one of the leading exporters to Walmart's global supply chain is poised to strengthen, as discussions with senior executives highlight the potential for enhanced collaboration and increased participation of Vietnamese suppliers.