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Connecting domestic businesses with world giants
Immediately after the opening ceremony of the exhibition, a direct one-to-one connection session between domestic enterprises and representatives of foreign corporations continuously took place.
Representatives of Vietnamese enterprises discuss directly with representatives of foreign corporations
As one of the units that discussed with Walmart representatives, Ms. Duong Thi Kim Cuc, Head of Business Development Department of Nha Be Garment Corporation, shared that in the past the company also made a number of orders for the group. this retail but through intermediary distributors. Therefore, this opportunity to directly contact Vietnam is to seek more opportunities to provide direct orders for Walmart – a large distributor in the US. The opportunity for one-to-one exchange makes many domestic businesses hope to have more new partnerships.
Similarly, Mr. Phan Quoc Nam, Business Director of Blue Ocean Trading Import-Export Joint Stock Company, said that one of the company’s strengths is exporting fresh fruits such as longan, mango, grapefruit, star apple… to the market. US and Australian markets with an output of about 50 tons/month. In addition, the company is also building a frozen fruit and vegetable processing factory with a capacity of 300 tons of finished products/month. The factory is expected to go into operation at the end of the first quarter of 2024, focusing on processing products such as durian, avocado, passion fruit, vegetables, sweet potatoes… for export.
Currently, the world market demand for tropical fruits and vegetables is very high. Vietnam is a country with strengths in this field. In terms of quality, Vietnam’s tropical fruits are excellent, not inferior to anywhere else. More importantly, in recent years, Vietnamese farmers have made great improvements in the production process to ensure safety and no chemical residue.
The exhibition connecting the supply chain of goods “Viet Nam International Sourcing Expo” 2023 takes place in Ho Chi Minh City and lasts from September 13 – 15. This year, the event recorded unprecedented interest in participation from major corporations in the world with the participation of Aeon, Uniqlo (Japan); Walmart, Amazon, Boeing, AES (USA); Carrefour, Decathlon (France); Central Group (Thailand); Coppel (Mexico); IKEA (Sweden); LuLu (UAE)… along with hundreds of businesses and international buyers from more than 25 countries and territories.
“We came to this forum to exchange, find more customers and hope to continue to develop the market to become one of the major suppliers for international distribution chains,” Mr. Phan Quoc Nam said.
On the other hand, Mr. Avaneesh Gupta, Senior Vice President of Walmart, informed that since 2013, Walmart established an office in Ho Chi Minh City. The Group views Vietnam as a supply center in Southeast Asia and also one of the most important supply markets globally.
“We create favorable conditions for the export of Vietnamese products not only to the US market but globally. Vietnam’s top export items include garments, electronics, fruits and vegetables, and food. products. Besides, Vietnam has the potential to grow exports of many types of goods such as: shoes, household appliances, toys, mangoes, durian and coconuts. We look forward to talking with many of you. suppliers and explore opportunities to source more products from Vietnam. The Covid-19 pandemic and geopolitical issues have greatly affected global supply chain connectivity. Therefore, This is an important stage to connect, build and redevelop the supply chain,” Mr. Avaneesh Gupta added.
Opportunity to join Boeing’s global supply chain
Among hundreds of units participating in the exhibition of supply chains, mainly consumer goods, the booth of the Ho Chi Minh City Mechanical and Electrical Association is modest but attracts the attention of visitors.
Mr. Do Phuoc Tong, Chairman of the Ho Chi Minh City Mechanical and Electrical Association, said that this time, businesses in the association participated in one booth because they wanted to have the opportunity to introduce and interact with Boeing. Although it is not known whether businesses can meet the requirements of this group or not, first of all, it is necessary to lay the basis for direct relationships and introduce the capabilities of businesses.
At the seminar “Strengthening connections with American technology and energy corporations” taking place on the same day within the framework of the exhibition, Ms. Truong Thi Chi Binh, Vice President of the Supporting Industry Association, said that many businesses in The country has participated in supplying with many foreign enterprises such as Samsung or Panasonic… Or some companies have made components in turbines for wind power blades. Although the new quantity is small, the profit margin is much higher than the products that mechanical enterprises previously produced. Therefore, she believes that all manufacturing and processing enterprises expect to have more opportunities to participate more in the supply chain for world corporations, including small and medium-sized enterprises in fields such as mechanical engineering. plastic, rubber…
Sharing at the conference, Mr. Maximie Dourdan, Director of Supply Chain Development for Southeast Asia, Japan, and Korea of the Boeing Group, said that since July 2021, the group has had a representative office in Hanoi. , focusing on developing more supply chains in Vietnam. In 2022, this group organized a supply chain forum with many domestic enterprises and evaluated its success. Vietnam is an important market for the group and right at the group’s headquarters, there are specialized departments and positions to support partners in Vietnam. According to him, the aviation industry predicts that in the next 20 years, the number of passengers will continue to increase and airlines will need more than 42,000 new aircraft.
Great opportunity for Vietnam
Vietnam has a great opportunity to become a new destination in the international sports goods supply chain. However, to do this requires a long-term vision. In the immediate future, businesses must be ready to adjust, modify, accelerate… according to changing market consumption trends.
Currently, Decathlon is looking for suppliers with autonomy, especially in raw materials. Besides, we must use data and digitalization to improve efficiency, flexibility and reliability. Digital transformation is an urgent issue for Vietnamese suppliers. Another important thing is that in the current context, there are many things that are uncertain, so short production time and fast delivery will be a big competitive advantage.
Accompanying the purchase of a new aircraft is the need to maintain, repair, replace some components… which will create a market with huge value. To completely assemble an airplane, Boeing will need to purchase 300 components and raw materials. Boeing’s global supply chain has 11,000 suppliers. Of which more than 200 suppliers are in Asia and growing; 9,500 from the US.
After the Covid-19 pandemic, the group realized that many suppliers were seriously affected, with reduced financial capacity or operational management. So while still maintaining partnerships with existing suppliers, Boeing also wants to diversify and further expand the number of suppliers outside the US. The areas that they look for units that can provide include the main components of the fuselage, wings, doors, and aircraft controls; providing materials, systems, and technical management services; hydraulic, rudder and brake systems; auxiliary materials, metals, turbine systems; providing aircraft interiors such as cabin systems, passenger seats…
“We want to develop new, direct suppliers for Boeing. We have been looking for new suppliers in Vietnam for the past 2 years and are still continuing,” Mr. Maximie Dourdan added.
It’s very difficult but still ready to respond
Not only in the manufacturing and aviation sectors, the renewable energy sector is a trend that the world is interested in and promoting development and application. This is a market that can create huge value because it involves all fields.
The quality of Vietnamese products is getting better and better
Over the past three decades, Vietnam has made significant progress in developing production from raw materials into high-quality, deeply processed products. Products made in Vietnam with increasingly better quality can meet the increasing needs of customers around the world. Agricultural products and food will be the focus areas that Central Retail is actively looking for sustainable partners in Vietnam. Vietnam’s typical and strong products that are grown according to safe and sustainable standards that can be traced to their origin will be the products that are especially sought after. In recent years, the amount of goods purchased from Vietnam has reached a value of over 100 million USD/year.
Mr. John Rockhold, Chairman of the American Chamber of Commerce in Vietnam (AmCham) in Hanoi, said there are many American energy corporations operating in Vietnam. The Association really wants to build a world-leading and reliable supply chain from raw materials and human resources in the field of renewable energy. There are many American corporations that want to invest and develop in Vietnam and they need to be given favorable legal conditions and a friendly environment. There needs to be regular dialogue between the Government and private enterprises because of the common desire to further develop the renewable energy sector. If favorable, from now to 2030 there could be tens of billions of dollars invested in Vietnam. It is important that Vietnam must have faster policy improvements.
According to Ms. Truong Thi Chi Binh, businesses know that in order to participate in the supply chains of world corporations, they must meet regulations and standards on quality, finance, human resources… because over the years there have been Participates in the supply chain for many large manufacturing companies in Vietnam. For example, with the aviation sector like the Boeing Group, higher quality standards and regulations may be more difficult for many Vietnamese businesses. However, if Boeing really wants to find suppliers in Vietnam, domestic enterprises are always ready.
In fact, there are still some points where Vietnamese enterprises cannot compete with units from China and India, but still have some advantages. For example, products manufactured requiring the combination of humans and machines are currently an advantage for Vietnamese companies; especially in terms of cost. Therefore, Ms. Binh believes that businesses need more connection support from the Government as well as major partners such as Boeing because domestic businesses are also customers of these corporations.
Source: Vietnam Posts English