25 C
Ho Chi Minh City
Friday, July 30, 2021

Walmart buys Vietnamese goods from FDI firms rather than Vietnamese suppliers

Must read

HCMC – Despite expecting to buy goods directly from Vietnamese firms, Walmart, an American multinational retailer, has encountered difficulties in finding Vietnamese suppliers. Over 95% of exporters from Vietnam joining the Walmart retail chain are foreign direct investment (FDI) firms.

Vince Tran, senior manager II of the development division at WMGS Vietnam Services Company, a representative of Walmart in Vietnam, told a review conference on December 17 that Walmart has made inquiries about thousands of types of Vietnamese goods, but has only bought hundreds of them, mainly from FDI firms.

The retailer is planning to increase the amount of Vietnamese goods at its Walmart supermarket chains, Vince Tran said. However, there has been some difficulty in placing Vietnamese products on Walmart’s shelves as many Vietnamese firms do not have the relevant strength required.

Vietnamese firms have failed to understand the United States’ demand and have yet to develop suitable products for the American market, Vince Tran told the conference reviewing the launch of a project encouraging Vietnamese firms to join foreign retail chains in five years.

Walmart requires firms to introduce their own products and assess the potential of these items, Tran said, adding that the retailer needs more proactive connection channels to be able to work with Vietnamese firms directly.

Speaking at the conference held by the Ministry of Industry and Trade, Ta Hoang Linh, head of the European- American Markets Department at the ministry, said that Vietnamese firms must make a big change and showcase their determination to join the foreign supermarket chain.

Addressing the conference, Deputy Minister of Industry and Trade Do Thang Hai said that the ministry will continue to issue effective policies to support and encourage Vietnamese enterprises to join direct export channels, Tuoi Tre Online reported.

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest articles