Project helps expand sales on transnational e-commerce channels

There is ample room for Vietnam to boost export and direct distribution of goods in foreign retail systems, heard a conference recently held by the Vietnamese Ministry of Industry and Trade (MoIT).

At the event, which discussed the implementation of the Government’s project on promoting Vietnamese enterprises' direct participation in foreign distribution networks by 2030, representatives of foreign distribution giants said Vietnamese exporters need to ensure stability in output, quality, and price of goods; and meet requirements of environmental protection for their products.

Shiotani, General Director of Japan’s Aeon Topvalu Vietnam said his firm annually imports tens of thousands of tonnes of bananas with a total value of US$100 million, with up to 70% of the volume used to be from the Philippines because banana supplies there are stable in terms of price and quality.

However, in 2018, Aeon signed a memorandum of understanding with the Vietnamese Ministry of Industry and Trade (MoIT) and began to import fresh bananas from Vietnam.

With positive feedback from customers, the volume of Vietnamese products exported to Japan increased significantly last year, accounting for more than 50% of the company’s total banana imports.

Shiotani said his company chooses banana suppliers based on their circular production model, adding that the model of this kind should be expanded.

To be accepted at foreign distribution systems, suppliers must meet the requirements of sustainable development and environmental protection besides product quality and price factors, he noted.

Aly Ansari, senior director in charge of supply at Walmart Group of the US, also said the firm is interested in suppliers who focus on sustainability factors.

He said Walmart places great emphasis on products made by ethical suppliers, who pay their workers fairly and attach special importance to ensuring food safety.

Vietnam’s agro-aquaculture products will be prioritised if Vietnamese producers apply climate change adaptation solutions to farming, he said.

According to Do Hong Hanh, strategic partner director of Amazon Global Selling Vietnam, in 2022, Vietnam’s exports through Amazon sharply soared by 80%. Nearly 10 million Vietnamese goods items, mainly kitchen products, textiles, health care products, and consumer goods, were exported through e-commerce platforms, with export value rising by 45% from the previous year.

Do Thang Hai, Deputy Minister of Industry and Trade said by implementing the project, Vietnam's high-quality products have reached millions of consumers through distribution channels worldwide.

Exporting to distribution systems of foreign retail groups has become an effective and sustainable solution to further expand the country’s export, Hai noted.

In the coming time, the MoIT will focus on developing a network of strategic partners for the project, especially retail distribution companies that have a presence in Vietnam or those that are interested in shifting their supply chain to the Vietnamese market, Hai said.

The ministry will also pay heed to studying and proposing suitable policies to encourage Vietnamese enterprises to engage in direct export, he said.

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