Will a minimum proportion of Vietnamese goods be required at foreign supermarkets?

Some experts, warning that foreign retailers will give priority to distribute goods from their home countries, have suggested taking serious measures to ensure the availability of Vietnamese goods at foreign supermarkets.

Some days ago, Big C stated that it would stop collecting textile and garment products from 200 Vietnamese suppliers. This raised fears that the Thai owned supermarket is trying to dislodge Vietnamese goods to make room for goods from Thailand.

Will a minimum proportion of Vietnamese goods be required at foreign supermarkets?



Analysts have voiced their concern about the expansion of foreign retailers in Vietnam, which will affect the retail market and cause domestic production to stagnate.

They believe that Vietnam needs to set requirements on the minimum proportions of Vietnamese goods available at supermarkets to be sure that local products can access customers.

In India, for example, at least 30 percent of products available at supermarkets must be made in India.

In Indonesia, in order to support domestic enterprises in competing with imports, the government stipulates that modern shopping malls and retail shops must ensure that domestically made products account for 80 percent of total goods in transactions.

Analysts have voiced their concern about the expansion of foreign retailers in Vietnam, which will affect the retail market and cause domestic production to stagnate.

 

In some special cases, retailers can distribute a lower proportion of domestically made goods. However, the retailers must obtain license from the ministry of trade to do this.

Meanwhile, in Vietnam, according to the Ministry of Industry and Trade (MOIT), there is no similar regulation on the proportion of Vietnam-made goods available at supermarkets.

The analysts said if there is no regulation on a certain rate of Vietnamese goods they have to sell, foreign retailers would have the right to refuse Vietnamese goods at any time.

However, Nguyen Duc Thanh from VEPR thinks there is no need to set such a regulation. The quality of products will determine if supermarkets distribute the products.

The Ministry of Industry and Trade said the proportion of Vietnamese goods at supermarkets is relatively high. According to VCCI, the figure is up to 80-90 percent at some supermarkets.

Dinh Thi My Loan, chair of the Vietnam Retailers’ Association, confirmed that at foreign owned retail chains, the proportion of Vietnam made goods is higher than that of foreign goods.

“The goods provided to retailers are mostly Vietnamese, which account for 60-90 percent,” Loan said.

She said foreign retail chains sell both domestically made products and imports from their home country. At many supermarkets, there are more Vietnam made goods than foreign ones.

Lien Hoan

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Big C ends the stocking of Vietnamese garments

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