At the 2023 Việt Nam International Sourcing event, many global buyers found suppliers in Việt Nam. — Photo courtesy of the organiser

HCM CITY — Leading distributors and retailers in Latin America will attend Vietnam International Sourcing in HCM City in June to look for large volumes of a diverse range of products, according to the Ministry of Industry and Trade.

The ministry’s European-American Market Department said last year Chile’s Falabella, the largest retailer in Latin America with 577 stores and shopping malls across Brazil, Argentina, Chile, Uruguay, Peru, Mexico, and Colombia and 35 million regular customers, found Vietnamese suppliers for sports equipment and apparel.

It said this year Falabella is looking to expand purchases from Vietnamese suppliers in a number of categories such as textile and garment, footwear, sportswear, household appliances, and electrical equipment.

Coppel, a Mexican department store chain, has also shown interest generally in Vietnamese products like clothes, footwear, technology accessories, and household furniture to diversify supply sources for its more than 1,600 outlets in Mexico and 27 in Argentina.

Venezuela’s Latiquim C.A Group, a leading manufacturer and distributor of chemical products for the food and s industry, is seeking long-term partners in Việt Nam, especially for sulfonic acid and phosphoric acid production.

The US’s Walmart Group, which operates a chain of supermarkets in Latin America, said it is looking to source textile and garment, footwear, interior and exterior furniture, home appliances, toys, and frozen foods from Việt Nam.

Nguyễn Đức Trọng, head of Walmart’s new supplier development department in Việt Nam, said the retailer has identified Việt Nam as one of its strategic purchasing locations for its global supply chain.

Walmart imported US$7 billion worth of Vietnamese goods last year, mainly electronics, textiles, footwear, and toys, he said.

According to the MoIT's European - America Market Department, with 33 countries, a population of more than 670 million and GDP of about US$6.5 trillion, Latin America is a promising market for Việt Nam.

Trade and investment relations between Việt Nam and the continent has enjoyed robust growth, with trade going up by half in the past five years to $20.6 billion last year, it said.

Việt Nam and Latin America have complementary import and export commodity structures, creating favourable conditions for expanding business cooperation, it added.

In addition to distributors and retailers from Latin America, the event has received unprecedented participation by other leading distribution and sourcing companies from other parts of the world who expect to source more Vietnamese products.

Mirash Basheer of Lulu Group, the leading supermarket chain in the Middle East and which has stores across the region, India, Indonesia and Malaysia, said after the 2023 event his company found goods sources to export to India.

This year the company will dispatch sourcing teams from Dubai, Oman, Kuwait, and other countries to the event to source for more goods from Việt Nam such as banana and coffee, he said.

A booth at the HawaExpo 2024 held in HCM City in March. More than 75 per cent of exhibitors signed contracts or MoUs with buyers at the fair. — Photo courtesy of Hawa

In another development, the Handicraft and Wood Industry Association of HCM City (Hawa) reported that the 2024 Ho Chi Minh Export Furniture Fair (HawaExpo 2024) held in March attracted over 20,000 visitors from 110 countries and territories, including over 4,600 international buyers.

More than 75 per cent of exhibitors signed contracts or MoUs with buyers at the fair for more than $115 million, it said.

Tạ Hoàng Linh, director of the European-American Market Department, said Việt Nam International Sourcing has brought a new perspective to global wholesalers and retailers about the capacity of Vietnamese enterprises.

“Việt Nam has become a major global manufacturing hub capable of supplying a wide range of products at competitive prices and with improving quality, and ensuring sustainable supply.”

More efforts needed

According to experts, global buyers coming to Việt Nam to source goods offer a great opportunity for Vietnamese firms to entrench themselves in the global production and supply chains.

But to seize the opportunities and secure more export orders, they need to improve their supply capacity, ensure stable quality, offer competitive prices, and meet stringent requirements in terms of environmental and social responsibility.

Yuichiro Shiotani, director of Aeon TopValu Vietnam, said Aeon seeks Vietnamese producers who are able to meet its criteria and standards, especially those who embrace green production, to become regular suppliers not only to its supermarkets in Việt Nam but also globally.

Hosted by the Ministry of Industry and Trade in collaboration with the city People’s Committee, the 2024 Vietnam International Sourcing will take place at the Saigon Exhibition and Convention Center in District 7 from June 6 to 8.

It has attracted 500 businesses in the international supply chain in five major industries: food and drinks; garments, textiles, and fashion accessories; shoes, bags, luggage, and accessories; sportswear and equipment; and household goods and home décor. — VNS