VietNamNet Bridge – The US biggest importers have begun seeking goods supply sources from Vietnam, while the negotiations for the Trans Pacific Partnership Agreement (TPP) are being conducted.

The 18th round of the negotiations for TPP is taking place in Malaysia, slated for July 14-25, while it is expected to finish by the end of the year. TPP is believed to create a global added value chain, in which Vietnam would be the biggest beneficiary.

Among TPP partners, Vietnam naturally puts a high hope on the increase in the exports to the US market, the largest consumer market. However, Vietnam there would have to compete with many other countries, including the ones which have been enjoying the preferential tariffs already.

According to Fred Burke from AmCham, farm produce and garments exports would most enjoy the tariff preferences within TPP. Currently, canned seafood exports to the US bear the tax rate of 28 percent, while the rate would be zero percent if TPP takes effects.

Experts have estimated that Vietnam’s export may grow by 34 percent once it joins TPP. Especially, the US may spend 3 years to help Vietnam build up the material supply chain for the textile and garment industry.

If so, Vietnam’s problem on the material origin would be lifted. In order to be able to enjoy the preferential tariffs for garment exports, Vietnamese products must have a certain proportion of Vietnam made materials. Meanwhile, at present, 40 percent of its materials have been sourced from China, which does not join TPP.

Especially, experts say, Vietnamese enterprises would be able to, through the US partners such as Walmart, Lowes, Kroger, which have their distribution networks worldwide, bring their products to every corner of the world.

Sources have said Walmart, the No. 1 retailer in the world, has obtained the license to buy goods from Vietnam.

Walmart’s representatives, in recent days, not only had working sessions with AmCham’s enterprises, but also had meetings with the domestic enterprises’ associations, sending words intimating that it is seeking suitable partners from whom it would buy goods to distribute within its distribution network.

Statistics show that 200 million people go shopping at Walmart every week, and 93 percent of the US families buy goods from Walmart once at least every year. If Vietnamese enterprises can have goods to be sold at Walrmart, the retail network with 10,000 retail shops in 27 countries in the world, their products would be sold not only in the US, but also in other 26 countries.

Prior to that, Korger, the US second biggest retail group, and Luckys Farmers Market, also came to Vietnam to look for suppliers.

In fact, Kroger has been buying Vietnamese goods over the last many years, but it has been doing this through intermediaries. And now it wants to work out directly with Vietnamese enterprises.

Tim Kelbel, Vice President of Kroger, said the group would import $5-6 billion worth of products, of which 4-5 percent would be from Vietnam. Kroger has been buying Vietnamese coffee, worth $50 million a year.

Once becoming the supplier to Kroger, Vietnamese enterprises would have the opportunities to sell its goods in 31 states in the US.

Meanwhile, Jason Brown, a senior executive of Luckys Farmers Market, in his lately working visit to Vietnam, said the group is implementing the program on opening new supermarkets, mostly in the central region of the US. Therefore, it would need big supplies from different countries.

DNSG