Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.
Retail giant Aeon ramping up product sourcing from VietnamWednesday, June 27, 2018 > 09:56:14
HO CHI MINH CITY
Japanese retail giant Aeon Co is expanding the sourcing of products from Vietnam, shifting procurement from China due to rising production costs there.
The retail-to-finance group recently held its first supplier meeting in the Southeast Asian country with about 120 companies participating, calling for the joint development of apparel, fishery products and processed food to be marketed in Japan.
The value of goods procured in Vietnam by Aeon for sale at home, which topped 22 billion yen ($200 million) in the year to March 2017, will further increase after witnessing double-digit growth in the past several years, Kazuhiko Yasukawa, chief officer of the Group Merchandising Division at Aeon Retail Co., told NNA.
The total sum of procurement from Vietnam is "never small" compared with other countries, said Yasukawa, adding that apparel accounted for nearly 70 percent of the total in the same business year, followed by furniture and other home products at 12 percent and food at 10 percent.
The group's core retail arm is seeking to buy more fishery products and processed food after seeing a sharp increase in apparel purchases from the country since 2013 as Chinese companies are moving their factories to the Southeast Asian nation.
The group, headquartered in Chiba Prefecture near Tokyo, established Aeon Topvalu Vietnam Co as a product development and procurement arm in 2016 to step up efforts for local sourcing for Topvalu, which represents a wide range of private brand products, while emphasizing the importance of quality management and offering guidance about trade practices to local firms.
At the supplier meeting, Do Thang Hai, Vietnam's vice industry and trade minister, expressed hope that Aeon would "cooperate in facilitating exports through the introduction of Vietnamese products." (NNA/Kyodo)