Vietnam eyes selling goods to Walmart, after MoU with Kroger
Vietnam eyes selling goods to Walmart, after MoU with Kroger
The Vietnam Trade Office in the US will seek to persuade leading US retailer Walmart to source goods from Vietnam in 2014, following this year’s initial success with Kroger, the North American country’s second-largest supermarket chain by revenue.
Last May, thanks to effort from the Vietnam Trade Office, Kroger representatives met with the Vietnam Cashew Association to discuss the possibility of purchasing several cashew nut products from 20 largest cashew processors and exporters of the country to sell in supermarkets under its chain.
As of February 2013, Kroger operated, either directly or through its subsidiaries, 2,424 stores while its 2012 revenues are US$96.75 billion.
Kroger also worked with 128 businesses in Ho Chi Minh City, some of which ended up inking a memorandum of understanding with the US second-largest retailer, Minister Counselor Dao Tran Nhan, chief of the trade office, told Tuoi Tre.
“We are planning to approach Walmart and invite them to take a Vietnam tour in 2014 as we did with Kroger,” Nhan said, adding that the Vietnam Trade Office branch in San Francisco intended to invite Walmart deputy president to meet with local officials in Vietnam.
The trade office also plans to directly visit the Walmart headquarters to invite its merchandise manager to attend a trade conference in Vietnam, according to the Minister Counselor.
Chances and challenges
Nhan acknowledged that it is not easy for Vietnamese manufacturers to have their products on shelves at Walmart stores. By the end of November, there were 4,800 Walmart stores across the US, according to its website.
“Vietnamese businesses have to carefully study the strict requirements set by US major retailers in order to be able to make qualified products,” he said.
These requirements are about the products’ quality, origin, label, barcode, and safety and environmental-friendliness standards.
Nhan said products like seafood, apparel, and cashew nuts are most likely to be able to enter Walmart chain.
“But chances are also there for manufacturers of interior furniture, bamboo handicraft, coffee, and even cat and dog food and pet toys,” he added.
“What’s most important is the businesses should try to meet all standards and requirements of the US retailer.”
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