VN suppliers struggle for places in supermarkets

It is becoming more and more difficult for manufacturers and suppliers to distribute their products via supermarkets.

Pham Thi Huan, owner of Ba Huan Enterprise, had to delay a plan to go to Australia because she had to attend a meeting between a retailer and suppliers days ago.

VN suppliers struggle for places in supermarkets



Huan attended the meeting in person because she wanted to meet the leaders of Vincommerce directly to learn about the opportunity to bring Ba Huan’s products to VinMart/VinMart+ networks, run by Vincommerce.

Vincommerce’s network of supermarkets and convenience stores has more than 2,600 sale points and strives to have 10,000 points by 2025. This explains why Ba Huân and enterprises such as Vinamilk, Thuan Phat Paper and Vissan all want to promote sales through the network.

However, according to Huan, except poultry eggs, Ba Huan still cannot bring other products to VinMart/VinMart+, though Ba Huan has spent VND1 trillion to build up a farm-to-table safe food chain.

All the works, from inventory management, stocktaking to data building and advertisement planning, will all apply technology. If suppliers don’t have compatible technology, they won’t be able to connect with the retailer.

Huan was one of 200 suppliers attending the meeting of suppliers organized by Vincommerce. Enterprises all want to learn about the retailer’s new strategy and bring their products to the supermarket and convenience store chains. 

 


According to Vu Vinh Phu, a respected retail expert, only one of every 10 Vietnamese enterprises can distribute products via foreign supermarkets, due to high costs and the high required discount rate of 30 percent.

Do Thi Thu Hang from Savills Hanoi commented that the competition in the retail market is stiff. The departure of the French Auchan from the Vietnamese market and the rapid expansion of Vingroup and Saigon Co-op in recent years shows the trend.

The fierce competition among distributors has forced suppliers to upgrade the quality of products. According to CEO of Vincommerce Thai Thi Thanh Hai, the company prioritizes long-term cooperation and applies different plans for every supplier.

One of the requirements the retailer set is synchronization in technology. It is expected that after the 2020 Tet, Vincommerce will boost sales via mobile phones, promote online sales and put into use the app reserved for the transactions between the retailer and suppliers.

All the works, from inventory management, stocktaking to data building and advertisement planning, will all apply technology. If suppliers don’t have compatible technology, they won’t be able to connect with the retailer.

Other supermarket chains including Aeon, Lotte, Big C, Bach Hoa Xanh and Saigon Co-op also have made changes in cooperation strategies with suppliers. Aeon and Big C have only accept suppliers who can compete in quality and price and meet requirements to export products to Aeon and Big C networks in other countries.

Mai Lan 

Vingroup’s retail, agriculture units merge with Masan

Vingroup’s retail, agriculture units merge with Masan

Vietnamese conglomerate Vingroup said on December 3 it has entered into a share swap agreement to merge its retail and agriculture arms with Masan Consumer Holdings, to create the country’s biggest retail company.

VN retail businesses need to develop their own brands

VN retail businesses need to develop their own brands

Local retail businesses should focus on developing their own brands, improving the product quality and diversifying products in order to enhance their competitiveness in the domestic market.

 
 

Other News

.
Moving from former adversaries to trusting and valued partners
Moving from former adversaries to trusting and valued partners
BUSINESSicon  07/07/2020 

Through candid dialogue, mutual respect, and a strong commitment to succeed by the leadership of both countries, Vietnam and the United States created a comprehensive partnership that identifies areas for both countries to work together.

EVFTA expected to give a lift to real estate sector
EVFTA expected to give a lift to real estate sector
BUSINESSicon  06/07/2020 

Many segments of the real estate market are soon expected to benefit from the EU-Vietnam Free Trade Agreement, which takes effect in August.

Whether Apple to build nest in Vietnam?
Whether Apple to build nest in Vietnam?
BUSINESSicon  07/07/2020 

Foxconn’s rush expansion in Vietnam raise nosy that whether Apple will choose the country as the place to build nest.

American groups make progress across Vietnam
American groups make progress across Vietnam
BUSINESSicon  06/07/2020 

Vietnam, as one of the fastest-growing economies in the ASEAN bloc, is becoming more appealing to American investors.

A dynamic and powerful ASEAN from the German perspective
A dynamic and powerful ASEAN from the German perspective
BUSINESSicon  06/07/2020 

Possessing key features that represent a snapshot of one of the most diverse, fastest-growing, and competitive regions, the ASEAN is an attractive economic region for not only German enterprises but also other European ones to invest in. 

Delving into specifics of amended business laws
Delving into specifics of amended business laws
BUSINESSicon  06/07/2020 

Businesses and investors are expected to access new positive changes when the amended Law on Investment and the amended Law on Enterprises take effect from January 1 next year.

Rays of sunshine in aviation clouds
Rays of sunshine in aviation clouds
BUSINESSicon  06/07/2020 

Amid serious impacts of COVID-19, there are hopeful points for the aviation sector on the back of the EU-Vietnam Free Trade Agreement.

Trade kickstart with distinctive solutions
Trade kickstart with distinctive solutions
BUSINESSicon  06/07/2020 

Vietnam is boosting its diplomatic activities in hope of attracting more investment and expanding its trade in the global market, with many of the country’s major partners about to open their doors to the world again.

EuroCham proposes Gov’t to cut 50 per cent of registration fee for imported cars
EuroCham proposes Gov’t to cut 50 per cent of registration fee for imported cars
BUSINESSicon  06/07/2020 

The European Chamber of Commerce in Vietnam (EuroCham) proposed the Government to apply the 50 percent registration fee reduction to all automotive assembly firms, importers and dealers of new vehicles.

Shares to correct amid lack of positive news
Shares to correct amid lack of positive news
BUSINESSicon  06/07/2020 

The benchmark VN-Index on the Ho Ch Minh Stock Exchange (HoSE) gained 0.62 per cent to close Friday at 847.61 points.

P2P firms in Vietnam waiting for a sandbox
P2P firms in Vietnam waiting for a sandbox
BUSINESSicon  06/07/2020 

Peer-to-peer (P2P) lending companies expect that the sandbox for fintech would eliminate unscrupulous businesses and help the market grow significantly.

Business outlook gloomy for firms based in Old Quarter of Hanoi
Business outlook gloomy for firms based in Old Quarter of Hanoi
BUSINESSicon  06/07/2020 

Many business owners in Hanoi’s famous Old Quarter are becoming increasingly concerned about the decline in customers, causing their revenue to sharply decrease, and resulting in many stores closing their doors following COVID-19 epidemic.

Auto dealers deemed main beneficiaries of registration fee cut
Auto dealers deemed main beneficiaries of registration fee cut
BUSINESSicon  05/07/2020 

Auto dealers have proved to be the biggest beneficiaries of the Government's move to introduce a 50% cut in car registration fees, and not car buyers, as expected, 

Nine more expressway contractors suspected of construction violations
Nine more expressway contractors suspected of construction violations
BUSINESSicon  05/07/2020 

Nine more former contractors have been accused of irregularities in the construction of a 139-kilometer-long expressway whose severe deteriotion was reported shortly after its opening in central Vietnam.

VASEP decries taxes on semi-processed and processed seafood
VASEP decries taxes on semi-processed and processed seafood
BUSINESSicon  05/07/2020 

Tax agencies have slapped many firms with a corporate income tax on semi-processed seafood products at 20%, while their products for exports or domestic consumption that are mainly processed, 

Domestic property market faces uncertainty
Domestic property market faces uncertainty
BUSINESSicon  05/07/2020 

The domestic real estate market is hoped to have growth in the fourth quarter of this year and before the Lunar New Year 2021 if, by this year-end, the domestic economy is restored to levels from before the COVID-19 pandemic.

Hanoi moves towards approving construction of third Aeon Mall
Hanoi moves towards approving construction of third Aeon Mall
BUSINESSicon  05/07/2020 

The proposed construction of a parking lot and the Aeon Mall Hoang Mai Trade centre will soon be decided upon by the Hanoi People's Committee as Prime Minister Nguyen Xuan Phuc has approved the adjustment of the city's construction planning.

Pork and oil prices key to keeping inflation in VN under control: experts
Pork and oil prices key to keeping inflation in VN under control: experts
BUSINESSicon  05/07/2020 

With huge inflation pressure on the way in the remaining months of this year, a close watch must be kept on the prices of key products like oil and pork to hit the goal of keeping inflation below 4 per cent, experts have said.

Market stagnant, real estate firms struggle
Market stagnant, real estate firms struggle
BUSINESSicon  07/07/2020 

Real estate firms have had to struggle to survive during the COVID-19 pandemic, which has caused the loss of trillions of dong and job losses to 75-80 percent of workers in the field.

Vietnam’s outward investment rebounds
Vietnam’s outward investment rebounds
BUSINESSicon  07/07/2020 

Outward investments, which fell for a short time because of Covid-19, resumed again after the social distancing policy ended.

 
 
 
Leave your comment on an article

OR QUICK LOGIN