As someone with experience in participating in connections between Vietnamese enterprises and international distribution channels, Mr. Nguyen Duc Trong, Head of New Supplier Development of Walmart Group (USA) in Vietnam, expressed his concern when meeting with many domestic enterprises wanting to bring goods to Walmart because they do not understand anything about this leading American retailer.

Know yourself and know others

According to Mr. Trong, businesses see Walmart as a major global distributor and want to connect, but there is a general feeling that these businesses are not ready to discuss related issues. Because they do not know in advance what Walmart is like, and do not understand how a major retailer in the world operates.

Vietnamese enterprises  need to overcome their weaknesses to make it easier to connect with international distributors.

As noted by the head of the department in charge of developing new suppliers, once Vietnamese enterprises want to work directly with international retailers, they are required to be proactive in everything. Meanwhile, there are some enterprises, partly influenced by the mindset of the business owners, that do not want to expand their production and distribution channels directly with retailers. 

“This also depends on the strategic orientation of each enterprise, but it is a pity for them. Because if Vietnamese enterprises work directly with retailers, it will be very different, especially learning a lot of working experience,” Mr. Trong confided.

Meanwhile, according to Mr. Do Ngoc Hung, Vietnam Trade Counselor in the US, in a recent bilateral meeting between Deputy Prime Minister Le Minh Khai and Walmart Group leaders, the group announced plans to expand its purchasing activities in the Vietnamese market. This is also evidence of the trend of major distributors towards the Vietnamese market in the coming time.

“Major US distributors are always looking to find and develop a base of reliable and flexible suppliers. And at the same time, they want to maintain a sustainable approach to ensure a stable supply of products that meet the needs of customers in the US market,” said Mr. Hung.

Therefore, with the opportunities opening up from major US distributors, it would be a great pity if Vietnamese enterprises cannot take advantage of them without overcoming their inherent weaknesses.

Therefore, the advice given by Mr. Nguyen Duc Trong to domestic enterprises who want to seize the opportunity to sell to major distribution channels in the US is to change their thinking and working style in the current context of globalization and rapid changes in the world market. If enterprises remain passive and just wait for distributors to "knock on the door", it will continue to be a step backward. 

Open new directions

In addition, in order for Vietnamese enterprises' goods to penetrate not only the US retail chain but also other international distribution channels, they must reach a certain brand level and adapt to certain standards to be able to enter. 

As for the issue of branding to help Vietnamese enterprises reach out to the “big sea” through international distribution channels, Dr. Dang Thao Quyen (RMIT University) believes that enterprises need to upgrade their brands based on quality, innovation and sustainability. Looking ahead, the value of a brand depends first and foremost on the quality of products and services.

“One thing I have noticed is that the products and services of Vietnamese enterprises still have a lot of room for improvement. I really hope that enterprises will make the right investments, innovate continuously and make a long-term commitment to what they want to sell in the market,” Dr. Quyen shared.

To do that, according to the RMIT expert, businesses need to really listen to customers, understand the market and constantly seek ways to innovate. Not only following trends, Vietnamese businesses should find new directions, such as green products, sustainable development, transparent and fair governance, contributing to equality issues. Next, Vietnamese businesses should be encouraged to find ways to tell their stories with Vietnamese identity to international friends.

Or as with green product standards when bringing Vietnamese goods into overseas distribution channels. If Vietnamese enterprises make efforts to export green products to overseas supermarket chains, it will certainly give them a proactive approach in addressing green pressure from global retailers and pave the way for better sustainability measures. This also highlights the fact that local enterprises following the green production path will have the opportunity to access large distributors in more demanding markets and learn new standards, processes and models.

Regarding this issue, speaking with VnBusiness , Mr. Yuichiro Shiotani, Director of Aeon Topvalu Vietnam, said that currently, the Japanese retailer Aeon is paying great attention to selecting businesses that have a green production development direction. 

For example, for bananas, according to Mr. Shiotani, the selection of companies that emit a lot of emissions into the environment will be reduced. Or for coffee products, priority will be given to choosing coffee products that are certified by fair trade organizations as having been produced according to Fair Trade standards, which means ensuring fair trade for the place where the product is purchased.

At the same time, to help Vietnamese suppliers overcome their weaknesses, Mr. Shiotani said that he regularly organized training sessions on regulations, standards or requirements for businesses. From there, Vietnamese businesses can bring their products to sell in Aeon stores around the world.

In short, in order for Vietnamese goods to enter international distribution channels, domestic enterprises that want to sell their goods here will need to examine their inherent weaknesses to both overcome and open up new directions. In particular, they need to proactively learn about distributors, achieve the highest level of brand and standards, meet green production trends... From there, the path to bring Vietnamese goods into international distribution channels will become open and straight.

Thuy Linh