Central Group Vietnam, the owner of retail chain Big C Vietnam, has promised to resume the purchase of soft-line products from 50 out of its 200 local suppliers, starting July 4, according to Do Thang Hai, deputy minister of Industry and Trade.
Illustrative photo.
|
In the next two weeks, Central Group Vietnam would continue to expand its purchasing activities to an additional of 100 suppliers, while the remaining 50 are subject to further consideration as the product quality is not up to standards, Hai informed.
On July 2, Central Group Vietnam released an announcement on the suspension of buying soft-line products from all soft-line suppliers in Vietnam, effective from July 2019.
According to Hai, Central Group’s decision was part of the group’s preparation for its project of restructuring soft-line department in Vietnam, which could last 15 days.
As of present, Central Group has 4,000 suppliers, including 200 soft-line partners.
The group had sent letters to its suppliers, explaining the decision was temporary and existing orders would still be carried out, Hai continued.
Le Viet Nga, deputy director of the Domestic Market Department under the MoIT, said the first 50 suppliers subject to resumption of purchasing activities are the largest ones.
Nga said Central Group did not complain about the quality of Vietnamese products, but the suspension of the ordering is owing to a change in the strategy of development of its softline concept with a shift towards products for higher customer segments.
The decision, therefore, should be respected, but Vietnam's government agencies would continue to supervise the group’s compliance with Vietnamese laws, including the Competition Law and the Law on Protection of Consumers’ Rights, Nga added.
Deputy Minister Hai said Vietnam welcomes foreign investors but stands firm on protecting the lawful rights of Vietnamese enterprises and customers.
Central Group Vietnam is a member of Central Group, which has been present in Vietnam since July 2011. Its business activities in Vietnam range from electronics, sports, fashion, shopping centers and hotels to e-commerce and supermarkets.
The group made the headline in Vietnam following its acquisition of a chain of 33 supermarkets and hypermarkets owned by Big C for US$1.05 billion in April 2016.
Last August, CEO of Central Group Vietnam Philippe Broianigo revealed a plan to invest an additional US$500 million in Vietnam’s retail market in the next five years, taking the total investment capital of Central Group in Vietnam since 2012 to US$2 billion.
