Vietnamese goods strengthen foothold in Canada through integrated supply chain

VOV.VN - From a small family-owned grocery store established in 1981, Lucky Supermarket and Dong Phuong Group have grown into a major Asian food distribution network in Western Canada.

Over the past 45 years, the enterprise has evolved beyond serving solely the Vietnamese community, emerging as a vital channel helping Vietnamese agricultural products, food, and consumer goods penetrate deeper into the Canadian market.

Currently, Lucky operates nine supermarkets in Edmonton, Calgary, Winnipeg, and Surrey, spanning 2,300 to 5,000 square meters each. Behind this retail presence stands Dong Phuong Group, which handles imports, logistics, and wholesale distribution for multiple retail chains across Canada. This closed-loop model, spanning sourcing in Vietnam, importation, distribution, and retail, enables goods to reach consumers faster, cuts intermediaries, and sharpens competitiveness.

In an interview with the  media in Canada, Vietnam Trade Counselor Tran Thu Quynh noted that Lucky and Dong Phuong Group rank among the pioneering enterprises running a combined distribution and retail system. Alongside supplying its own chain, Dong Phuong acts as a distribution partner for numerous major supermarket chains in the "Maple Leaf Country," broadening consumer access to Vietnamese goods.

A key factor is the enterprise's direct procurement network inside Vietnam, allowing goods to move straight from factories and raw material regions to Canada without transiting through third countries. Consequently, products originating from Vietnam account for roughly 30% of Lucky's product portfolio, a remarkably high proportion for a foreign-based supermarket chain.

Each year, Dong Phuong Group imports about 500 containers of Vietnamese goods. Alongside traditional staples like rice, fish sauce, coffee, and dry foods, the inventory now includes fresh fruit, beverages, processed foods, vegetarian options, household goods, ceramics, and general consumer products. With plans to open 10 additional supermarkets by 2030, the enterprise aims to further expand market space for Vietnamese goods in Canada.

Nguyen Tan Ba, founder of Lucky Supermarket, stated that processed seafood, tropical fruit, and rice maintain strong competitive advantages in Canada. However, consumer demand is shifting toward deeply processed foods, convenience items, vegetarian diets, plant-based products, and goods appealing to younger demographics-segments requiring sustained investment from Vietnamese enterprises.

According to Tran Thu Quynh, Lucky's expansion not only widens market share for Vietnamese goods but also grants domestic enterprises direct access to Canada's modern distribution network.

The Vietnam Trade Office in Canada has recently partnered with Lucky and Dong Phuong to organize B2B networking events, bringing Canadian importers to source directly from Vietnam while helping domestic producers adapt to Canadian market demands.

Additionally, the trade office has collaborated with businesses to promote Vietnamese brands through events such as Vietnamese Coffee Day in Canada, Lunar New Year showcases, and community programs, thereby lifting the profile of Vietnamese goods among Canadian consumers.

Although the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) delivers significant tariff benefits, Vietnamese enterprises still encounter barriers regarding quarantine, food safety, packaging standards, traceability, and logistics costs. Notably, high-value-added items like meat, eggs, and dairy remain locked out of Canada due to strict quarantine regulations and supply management mechanisms.

Vietnamese enterprises must continue standardizing product quality, investing in deep processing, convenience items, and plant-based foods, while updating packaging and partnering proactively with well-connected Canadian importers.

This strategy is essential for moving beyond the overseas Vietnamese consumer base to capture local shoppers and other ethnic communities.

After 45 years of development, Lucky Supermarket has transcended its origins as a community grocery store to become a critical link in Canada's supply chain for Vietnamese goods.

Drawing on trade promotion support and CPTPP advantages, the partnership model linking domestic exporters, importers, and Canadian retailers is laying a solid foundation for Vietnamese goods to expand their market share in one of the world's most demanding markets.

 

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