In recent years, Saigon Co.op has continuously increased the proportion of Vietnamese goods exported to many world markets through cooperation with many global distribution chains. With the export turnover of Vietnamese goods that this unit recorded, it is expected to reach 120 billion VND by 2025, which will open up many opportunities for Vietnamese goods.
Opening up many opportunities for Vietnamese goods
Since its early years of formation and development in the 90s, the Ho Chi Minh City Cooperative Union (Saigon Co.op) has participated in import-export activities. Later, to serve the increasing domestic consumption demand, the unit increased the rate of imported goods because domestic production activities could not meet the demand. When domestic production capacity developed more strongly, there were more and more quality products that were more suitable to the needs of the people, Saigon Co.op prioritized choosing Vietnamese goods to bring to consumers. This is also the reason why the rate of Vietnamese goods currently accounts for more than 90% in the entire Saigon Co.op distribution system.
In the context of Vietnam joining 17 free trade agreements, opening up a huge market share for Vietnamese goods. On the other hand, Vietnamese brands are increasingly asserting their position in many demanding markets and the demand for Vietnamese goods globally is increasing sharply. With the above factors, Saigon Co.op has put forward a strategy to develop export market share for Vietnamese goods, which is to synchronously implement two solutions, exporting Saigon Co.op’s private label products and exporting goods from Saigon Co.op’s suppliers. This retailer has gradually established safe export corridors for Vietnamese goods by establishing cooperation with many distribution chains around the world. For example, in 2023, through cooperation with NUTC Fair Price – a professional modern retail unit with over 260 supermarkets, hypermarkets, convenience stores, etc., contributing 57% of the market share in Singapore, Saigon Co.op exported Vietnamese agricultural and seafood products to the Singapore market with a total export value of nearly 90 billion VND.
Most recently, Saigon Co.op has joined hands with STC Natural Vina Company to export goods to the US market. The group of goods selected for export this time is imbued with the identity and quintessence of Vietnamese cuisine such as dipping sauce, vermicelli, pho, spices, tea, coffee… with an order value of nearly 70,000 USD. All of these Vietnamese products will be sold at the H-mart supermarket system of Hee Chang Group – a famous Korean retail group with more than 30 years of experience in the US market with more than 100 points of sale across the US. Previously, the two units also successfully exported 2 containers of Vietnamese goods to the Canadian market. It is expected that Saigon Co.op’s export turnover will reach 120 billion VND by 2025.
Reduced risk compared to self-exporting
Sharing about the difference when exporting Vietnamese goods through Saigon Co.op compared to exporting by themselves, Mr. Nguyen Anh Duc, General Director of Saigon Co.op, said that in addition to the prerequisite that the product must meet the standards of the export market, when “joining hands” with Saigon Co.op, businesses will significantly reduce risks. It can be said that businesses do not have to find orders themselves and can combine orders with other businesses in Saigon Co.op’s supply system when exporting. This is very beneficial for businesses with small and medium-sized production scale, both expanding market share at the most reasonable cost and improving competitiveness in the global market. In particular, businesses are also supported to produce goods that meet export standards right in the country, avoiding the risk of loss due to returned exported goods.
Accelerating synergy solutions in export activities through distribution systems will help businesses develop market share faster, more stably and sustainably. Saigon Co.op will continuously create and expand the network of safe export corridors for Vietnamese businesses in the coming time.