Leading global buyers share a common perspective: Vietnam is making significant strides towards becoming a “strategic destination” and a global manufacturing powerhouse in the ongoing process of international supply chain restructuring. Suppliers in Vietnam are steadily reinforcing their resilience and their ability to provide a wide range of diverse, competitively-priced products with continuously improving quality to the global market.
Exploring New Export Opportunities, Strategic Partnerships
During the “International Supply Chain Connection” forum held on September 13th as part of the Vietnam International Sourcing Expo 2023 in Ho Chi Minh City, Mr. Avaneesh Gupta, Deputy CEO of Walmart Group (USA), expressed that Vietnam is one of Walmart’s most crucial supply sources globally, serving as a supply hub across Southeast Asia. Walmart’s sourcing team is facilitating the export of Vietnamese products worldwide, including to the United States, Canada, Mexico, Chile, and China. Vietnam’s top exports to Walmart include textiles, seafood, cashews, soy milk, coffee, and fresh fruits, with significant potential for growth in categories such as footwear, household goods, toys, mangoes, rambutans, and coconuts.
Mr. Gupta emphasized Walmart’s commitment to maintaining strategic relationships with Vietnamese suppliers in the coming years. He stressed the importance of Vietnamese businesses maximizing opportunities, minimizing supply chain risks, and offering products at competitive prices to meet customer demands. To become reliable suppliers, flexibility within the supply chain is essential.
Vietnam’s Response to Challenges
Mr. Lionel Adenot, CEO of Decathlon Vietnam, acknowledged that despite the challenges faced in 2023 due to extreme instability and uncertainty, these circumstances have created significant opportunities for Vietnam to establish itself as a new hub in the global supply chain, particularly for international sports products. He encouraged Vietnamese suppliers to adopt flexible, long-term strategies that can adapt to changing environments and continue to transform positively.
According to Mr. Adenot, Vietnamese suppliers should prioritize autonomy and leverage digital data to enhance efficiency, flexibility, and reliability within the supply chain. Examples include the adoption of automated warehouses and RFID systems for improved source tracking and energy monitoring.
Diversifying Supply Chain Strategies for a Changing World
Mr. Yuichiro Shiotani, CEO of Aeon Topvalu Vietnam, representing a leading Japanese retailer and buyer, emphasized that suppliers who remain stagnant and resist adapting to the changing world will struggle to keep up with global trends. Therefore, Vietnamese suppliers that embrace the times will find significant opportunities.
Aeon has plans in place for Vietnamese products, and there is an expectation that Vietnamese supplier products will reach Aeon customers across various countries and become essential products for consumers.
Vietnam: At the Heart of Global Supply Chain Restructuring
Representatives from leading global buyers unanimously agree that Vietnam is rapidly transforming into a significant global manufacturing hub with strengthened resilience and the capacity to supply a wide variety of products at competitive prices and improving quality.
Buyers are also embracing the trend of diversifying their international trade supply chains, particularly after recent political and economic uncertainties. Many corporations, retailers, and wholesalers are actively pursuing diversification strategies, ensuring sustainable supply sources, and have chosen Vietnam as a strategic location in their global supply chains.
According to Mr. Suresh Prabhu, former Minister of Commerce and Industry of India, Vietnam is now in a central position, serving as a vital link in global supply chains. Like India, Vietnam plays a substantial role in the global supply chain restructuring by providing products that meet international consumer criteria.
“Vietnam’s manufacturing industry is like a precious gemstone within a rock, now polished and refined. Therefore, I believe that retailers and major global buyers will continue to flock to Vietnam to seek product suppliers as part of their ongoing efforts to restructure international supply chains,” emphasized Mr. Suresh Prabhu.
Furthermore, some domestic businesses at the forum highlighted the importance of transitioning their production processes towards green, sustainable, and circular practices. This strategy not only boosts exports but also provides deeper participation in international supply chains during a period of rapid transformation in manufacturing.