Group signs contracts with nearly 250 local enterprises to help and promote local production.
Vingroup, Vietnam’s largest property developer, signed cooperation contracts with nearly 250 local enterprises in seven industries on the first day of June under its program to support and promote domestic production. In the fields of food, cosmetics, stationery and toys, household appliances and fashion and textiles, the enterprises are from eight cities and provinces nationwide.
Deputy Chairman Le Khac Hiep said the competition not only in the retail sector but also in production has become more difficult since Vietnam became party to free trade agreements. He believes, however, that this is a chance for local enterprises to improve their product quality. “The program aims to promote domestic production, providing safe food sources and also building national brands of international standard to best serve local consumers,” he said.
Under the contracts, Vingroup and its subsidiaries Vincommerce, Vincom Retail, VinEco, and VinDS offer a solutions package to enterprises, such as incentive policies to distribute their products within the group’s network and enhance their brand presence. The group also commits to supporting these enterprises regarding technology, management, quality control, and marketing.
Over 140 enterprises signed distribution contracts with Vingroup and will be able to sell their goods at Vinmart supermarket and Vinmart + convenience store chains on preferential terms until June 1, 2017. Food suppliers, especially those involved in fresh food such as meat, fish, poultry, and fruit and vegetables, will not be required to offer a discount until June 1, 2017.
The other 100 firms signed cooperation contracts with the group to strengthen their brand presence within its chains, such as Vincom Retail, VinDS, and VinPro (part of Vincom Retail).
The incentive program is to help suppliers have more funds to reinvest in product quality and improve safety and hygiene standards. All enterprises have committed to supplying the market with high-quality products and at the same time Vingroup encourages them to cut their prices to support consumers.
Vingroup has invested in 16 laboratories in cities and provinces that have Vinmart supermarkets, which are able to check and control the hygiene and safety of products sold in its network.