Retail giants give Vietnamese exporters recommendations to drive sales
Retail giants give Vietnamese exporters recommendations to drive sales
The Vietnamese Ministry of Industry and Trade held a conference on Friday afternoon, in which global retail giants such as Uniqlo, Aeon, and Amazon put forward a host of recommendations to help Vietnamese exporters engage more deeply in global production and supply chains.
The conference is part of the upcoming Vietnam International Sourcing 2023, scheduled to take place in Ho Chi Minh City between September 13 and 15.
Speaking at the conference, Ta Hoang Linh, director of the ministry’s Europe - American Market Department, underlined the need to effectively connect local exporters with foreign corporations to support the former in finding suppliers amid an economic downturn.
Many foreign procurement firms at the event mentioned their requirements on goods imports.
Japan’s Fast Retailing Group, the parent firm of the fashion brand Uniqlo, affirmed that Vietnam had built a sound foundation in producing textile products and improving supply chains. Hence, Uniqlo prioritizes procuring products from this Southeast Asian market.
The Japanese fast-fashion retail brand said that it is no longer appropriate to focus only on final production in the textile-garment industry.
The Fast Retailing Group needs the connectivity between the input and output to have more domestic raw materials and auxiliary factories.
"We have developed many innovations for the supply chain in Vietnam, which can further strengthen our presence through cooperation programs," said the Uniqlo brand owner.
Shiotani Yuichiro, general director of Aeon TopValu Vietnam, a subsidiary of the Japanese retailer Aeon, said Aeon pays much attention to smart clothing products, such as UV protection, waterproofing clothes.
In recent years, consumers’ awareness about sustainable development goals has gradually increased in Japan.
Therefore, the Aeon TopValu Vietnam leader suggested Vietnamese exporters should make huge efforts to switch to an integrated production model to optimize their business performance and increase production effectiveness.
The TopValu Vietnam leader added that Vietnam needs to enhance its fabric production capacity in order to be on a par with global standards and take deeper participation in global supply chains.
Until now, most Vietnamese textile-garment exporters still have to import fabrics and are in charge of the CMT (cut - make - trim) process only.
The cost of fabrics accounts for some 80 percent of the finished product price, so labor cost is no longer a competitive edge of Vietnam, given the country’s limited productivity.
The TopValu representative anticipated that local businesses could face more competition if they have to import fabrics and carry out the simple steps as contract manufacturers in the upcoming period.
He suggested these businesses should take measures to become more self-sufficient in fabric production so as to enhance their competitiveness.
According to an Amazon Global Selling representative, to approach the international market through the e-commerce channel, Vietnamese businesses need to gain deeper insights about their foreign clients by making the best use of digital technologies, improving the quality of products and services as well as marketing strategies.
Also, they need to facilitate product innovation by listening to feedback from customers, in addition to building brands and learning how to promote brand storytelling skills.
The Amazon Global Selling representative added that Vietnam's e-commerce export revenue reached US$3.5 billion last year and is expected to hit $13 billion by 2027. Thousands of Vietnamese businesses have offered their products and services on the Amazon platform up to now.
Regarding the upcoming Vietnam International Sourcing 2023, it will include a series of activities, including conference, trade exchange programs and the Vietnam International Sourcing Expo 2023, which could gather 300 businesses from different areas in the global supply chain.
This year, the event is expected to welcome 8,000 visitors and 150 delegations from 30 countries and territories, according to the Vietnam News Agency.
