The Hanoitimes - As competition in retail market is becoming fiercer, domestic retailers are actively forming linkages from production to distribution, with an aim to improve competitiveness.
According to expert, it is vital to maintain a close relation among suppliers, local producers, farmers, customers, distributors and local government for sustainable development in modern retail. This kind of linkage will support related parties in the value chain to have steady stream of revenue, as retailers will have stable sources of quality products, and Vietnamese goods will have more access to customers. As such, this is the biggest advantage Vietnamese retailer have to compete with foreign companies.
Chairman of Board of the Cooperative Union of Agricultural Consumption (UCA) Pham Anh Tuan said, UCA understands that only when enterprises are in full control of the goods supply then they can improve competitiveness. Therefore, UCA has invested in the retail system UCAmart right from the beginning. UCA with this system has closely cooperated with cooperative unions in Vietnam to find the appropriate agricultural products brought to Hanoi for consumption. Farmers in areas chosen by UCA to buy agricultural products are supported in working methods, and assisted in selling products. With this being said, as of present, UCAmart has stable goods supply from 63 provinces/cities across Vietnam.
Local agricultural products are in favor of customers in super markets.
Despite having gone into operation in recent 2 years with 7 UCAmarts in Hanoi, these UCAmarts have become reliable distribution channel of safe agricultural products and being favorite products of Hanoi’s customers. At the same time, UCAmarts have become a reliable supplier of safe agricultural products for some schools in Hanoi. In parallel with opening some new distribution channels, UCA also aims to become top supplier of safe agricultural products to big super markets such as VinMart, Big C.
In particular, the Hanoi Department of Industry & Trade has organized the event promoting trade between Hanoi and provinces/cities within the Hanoi Vietnamese Goods Fair 2017, with the participation of 27 distributors and super markets in Hanoi in connection with 80 suppliers and producers in 25 provinces/cities, resulting in 80 signed Memorandum of Understandings (MoU) on product consumption. The Hanoi Promotion Agency (HPA) has organized the event promoting trade and agricultural products consumption between Hanoi and Lam Dong, thus creating opportunities for enterprises in Lam Dong to introduce its specialties to distributors in Hanoi.
Similarly, the UCA based in Ho Chi Minh city has implemented trade programs with provinces in Mekong Delta to suppy agricultural products to Ho Chi Minh city. Vice General Director of UCA in Ho Chi Minh city Nguyen Anh Duc said after a period of promoting Vietnamese goods, at present, the rate of Vietnamese goods in Saigon Co.op is 90%.
In order to continue forming linkages for Vietnamese goods, in the coming time, the Ministry of Industry & Trade will implement events connecting supply and demand for Vietnamese goods; supporting the model of Point of Sale for Vietnamese goods to assist selling goods for local farmers, building database on the distribution network of Vietnamese goods, creating favorable conditions for enterprises to take more goods into distribution channels.