Vietnamese commodities enter foreign distribution networks

(VOVWORLD) - The direct exports to foreign distribution systems are considered to be an efficient and sustainable method, which many Vietnamese exporters are pursuing. This year, the Ministry of Industry and Trade has implemented a project to help Vietnamese enterprises join foreign distribution system until 2020. The project aims to promote trade, advertise Vietnamese brands, and expand market for Vietnamese goods. 

In early 2000, foreign investors began to show interest in Vietnam’s distribution market. First were European companies such as Metro supermarket of Germany and then Bourdon Group’s Big C of France. Since then, Vietnamese exporters could directly access foreign distributors in Vietnam.

In the past, Vietnamese goods were sold worldwide, mainly via mediators or importers.

Dang Hoang Hai, Director of the European Department of the Ministry of Industry and Trade, said: “Vietnamese enterprises will face many disadvantages when they have to export through intermediary agents. The first drawback is that Vietnamese exporters will not know consumers’ demands. Secondly they will not understand the management capacity of major distribution chains around the world. Third is when exporting products through the third parties, Vietnam cannot develop its brands. Vietnamese goods will be packed in the names of foreign companies. Even the “Made in Vietnam” printed on products will be lost.”

During the first Vietnam Goods Week held at the Big C supermarket chain in 2011, Vietnamese businesses received direct training from procurement personnel of the distribution system.

With the initial results, from 2012 to 2014, the Ministry continued to organize Vietnamese Goods Weeks in Metro supermarkets and BigC stores. In June 2016, the model was expanded to supermarkets of South Korea and Japan.

During the Vietnamese Goods Week in Japan’s Aeon shopping mall, seminars, forums, and training programs were held through which Vietnamese enterprises could connect with foreign distributors.

Nguyen The Tan, Director of Tâm Lan Tea Company, said: “Thanks to the introduction of the European Market Department, we have easily accessed the market there and our products have entered France through the Thanh Bình supermarket system.”

There are approximately 170 foreign retailers in Vietnam. The dominant names included Big C, Lotte Mart, and Aeon Mall, which mainly sell Vietnamese products. But it requires stronger measures to have Vietnamese goods sold in major shopping malls outside Vietnam.

The Prime Minister has approved a project entitled “Developing Direct Participation of Vietnamese Enterprises in Foreign Distribution System until 2020”. Under the project, the Ministry of Industry and Trade will organize Vietnamese goods weeks abroad and seminars involving major foreign distributors in Vietnam, who will help sell Vietnamese products in their respective distribution chains. The project aims that by 2020 Vietnamese goods will be available in big shopping malls in Europe, North America, Southeast Asia, Northeast Asia, and in the countries Vietnam has signed FTAs.