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May 10, 2018 / 11:50

Vietnamese firms developing links to global distributors

More Vietnamese firms are pursuing targets of having their goods to be sold directly through foreign distribution systems as it is considered an effective and sustained export channel.

The Ministry of Industry and Trade (MoIT) has so far worked with large foreign distributors to help the firms develop the new export channel.
 
Vietnamese mangos are sold at a Japanese supermarket
Vietnamese mangos are sold at a Japanese supermarket
Accordingly, MoIT, in conjunction with Central Group of Thailand, Japan-based Aeon Group and Rungis International Market – the world’s largest wholesale food market – from France, held a training workshop “Assisting Vietnamese Enterprises’ Participation in Foreign Distribution Networks” on May 8 to enhance the export capacity for exporters in northern provinces, which gathered 180 exporters from northern provinces. 
It is part of the governmental project, namely “Developing Direct Participation of Vietnamese Enterprises in Foreign Distribution System up to 2020”, that seeks to help local firms develop new export channels to directly take their products to consumers in foreign countries. The goal will be achieved via the provision of a series of training workshops for enterprises on management on goods standard and quality, import-export procedures of different overseas markets. 
At the workshop, representatives from Central Group and Aeon updated participating firms on activities which will take place as part of the project in the time ahead to connect Vietnamese firms and foreign distributors. 
Yuichiro Shiotani, director general of Aeon Topvalue Vietnam advises local companies to add more values to their products before selling them to foreign distribution channels and that the firms should not focus too much on cheap prices or low labor cost which does not generate real values for the products. 
He noted that Aeon Topvalu has been working to put a number of made-in-Vietnam products, which are available in Aeon Vietnam retail stores, on the shelves of its stores in Japan. 
Shortly after the training sessions, the businesses were provided opportunity to meet with purchasing units of Central Group, Aeon Group and Rungis International Market to seek partnership. 
To effective implement the project, MoIT called for the close cooperation between State management bodies, trade promotion agencies, local governments, enterprises and distributors.
MoIT has partnered with several foreign distributors such as Casino (France), Metro Cash & Carry (Germany), Makro (Czech Republic), Coop Italia and Conad (Italy)  to hold Vietnamese Products Week in European Union since 2011, which have helped Vietnamese firms export through foreign distribution channels to cut intermediary costs and get higher value.
Last year, the ministry shook hands with Central Group Vietnam and Big C organize the second Vietnamese Products Week in Thailand in July that showcased a variety of Vietnamese products like handicrafts, garment and textile, and farm produce like litchi, dragon fruits and sweet potatoes to be exported to Thailand and other ASEAN countries. The event saw the presence of Prime Minister Nguyen Xuan Phuc.
In 2015 the Government approved a plan to help Vietnamese businesses directly participate in foreign distribution networks.
It hopes to ensure Vietnamese products are directly sold through major distribution systems in countries in Europe, North America, Southeast Asia and Northeast Asia with which Vietnam has signed free trade agreements.
According to experts, Vietnamese firms, however, have encountered difficulties in accessing foreign distribution systems as they need to ensure consistent quality to sell through modern trade channels.
Vu Kim Hanh, the chairwoman of the Vietnamese High Quality Product Business Association, said the key factors for Vietnamese products to enter modern trade channels were quality and origin traceability.
Besides focusing on quality assurance and origin traceability, Vietnamese producers need research trends in potential markets to identify the right strategy for each market, they suggested.