Vietnamese products are increasingly gaining popularity among consumers worldwide.- Illustrative image (Photo: sggp.org.vn)

Unlimit ed demand for goods

According to Avaneesh Gupta, Senior Vice President of General Merchandise & Apparel Sourcing at Walmart – the world's number one retailer, Vietnam is among the top five countries for exports of wood and agricultural products and ranks 10th globally for textiles and footwear exports.

Notably, Vietnamese products are increasingly gaining popularity among consumers worldwide, Gupta said.

As part of the 2024 supplemental sourcing strategy for the Walmart network, the firm has deployed procurement teams to Vietnam to explore sourcing opportunities in the country, with the product categories including seafood, cashew nuts, soy milk, coffee, fresh fruits, and fruit-based snacks, he said.

Lionel Adenot, Director of Decathlon Vietnam Group, has mentioned that his company is expanding its textile product supply with unlimit ed volume.

However, to become suppliers of the firm, Vietnamese businesses need to meet specific conditions, including ensuring that factories do not use coal and have a roadmap to eliminate the use of fossil fuels by 2025, achieving self-sufficiency in raw material supply, favoring environmentally friendly, on-site material usage, and implementing digital transformation in their production processes, he said.

Decathlon Vietnam Group will prioritize businesses that meet criteria related to responsibilities towards workers and the community, he added.

Agriculture also represents an enticing industry for foreign investors.

Central Retail Group has offered technical assistance and methodologies for cultivating organic honeydew melons to Danny Green Corporation, which has successfully established and currently operates a 120-ha organic honeydew melon farm in the south-central province of Binh Thuan.

Insiders said that foreign companies are willing to collaborate with Vietnamese businesses to standardize farming and production processes in order to improve the supply capacity of these businesses, thus stabilizing the supply of goods for their supply chains.

Abundant opportunities for direct investment

Besides seeking reliable supply sources, numerous businesses from the RoK, the US, and Europe are keen on directly investing in Vietnam.

Jean Jacques Bouflet, Vice-Chairman of the European Chamber of Commerce in Vietnam (EuroCham), said with its strategic geographical location, stable economy, young workforce, and favorable policies, Vietnam is emerging as an increasingly important destination in the global supply chain.

Since the signing of the EU-Vietnam Free Trade Agreement (EVFTA) in 2019, European enterprises have invested in 2,250 projects worth US$26 billion in Vietnam.

In addition, the race for investment in Vietnam has attracted numerous leading US corporations such as Apple, Qualcomm, Nike, Morgan Stanley, Intel, GE, ACORN International, General Dynamics, and Google. Recently, Boeing also explored opportunities to expand its investment in Ho Chi Minh City, especially in material supply facilities and establishing technical centers, Sai Gon Giai Phong Newspaper reported.

According to Maxime Dourdan, Director of Supply Chain Development for Boeing in Southeast Asia, Japan, and the RoK, compared to Japan and the RoK, Vietnam holds a significant advantage when it comes to production costs.

Additionally, the capacity of the Vietnamese supporting industry has significantly improved in recent years, with many Vietnamese businesses becoming part of the global supply chains of large corporations like Samsung, Sanyo, Intel, and others. This serves as a foundation for Boeing to explore cooperation and expand its supply chain investments in Vietnam, Dourdan said.

Statistics from the Ministry of Planning and Investment show that foreign firms invested US$18.15 billion in Vietnam in the first eight months of 2023, representing an increase of 8.2 percent compared to the same period last year.

To attract more sustainable investment inflows, there should be consistency in investment incentive policies to reassure investors about long-term business operations in the Southeast Asian nation, said Hong Sun, Chairman of the Korean Chamber of Business in Vietnam.