Accompanying, Supporting and Promoting Vietnamese Production
VinCommerce General Commercial Services Jsc
INTRODUCTIONThe main objectives of the project are:
- Support and maximise the competitiveness of manufacturers and suppliers in Vietnam; bringing goods made in Vietnam closer to consumers; demand stimulus and promote production development; create new jobs and contribute to building the country.
- With a large number of partners over 250 domestic suppliers signing cooperation with Vincommerce, the source of goods into Vinmart stores and VinMart + stores will be ensured in terms of quantity, goods coverage and quality. Cargo; making the retail system of Vincommerce dominant in the market. In order to maintain the above two goals, the Company has implemented many measures and including 2 main solutions:
- Supporting consumption of Vietnamese goods through modern retail system VinMart & VinMart + with more than 1,800 points of sale.
- Promoting domestic production and consumption.
- Directly involved in production in some consumer goods industries.
- Develop trade discount policies with strong incentives for small and medium-sized Vietnamese enterprises.
- Support product promotion at the point of sale to more than 250 Vietnamese small and medium enterprises, increasing from 20-25% of product sales.
- Promoting the coordination of industry associations and agencies to research and implement solutions to support Vietnamese enterprises.
- Support small and medium Vietnamese enterprises by contributing capital, consulting on technology, management, quality control, marketing, product consumption ... to invest in expanding production and upgrading quality, optimise competitiveness before imported goods.
FRAMEWORK AND STRATEGYProject implementation process:
- Step 1: Cooperating businesses cooperate directly with VinCommerce Goods Supply Center (TT VCM); VCM Center will deploy expected goods and order based on the demand and sales power of the retail system.
- Step 2: Goods of suppliers are transferred to Vincommerce warehouses for storage, quality control, food safety and distribution planning at the point of sale.
- Step 3: Goods to supermarkets are performed by supermarket operation department to display goods and sales. The supplier / manufacturer will coordinate with the supermarket to organise promotions, sales promotion activities at the point of sale.
ACHIEVEMENT AND IMPACTThe project took place within 12 months, started to be implemented from June 2016 to June 2017 and continues to support until 2019. The project is divided into 3 main phases:
- Phase 1 (first 4 months): VinCommerce supports small and medium domestic enterprises with 0% discount when putting products into VinMart & VinMart +, making it easier for consumers to access.
- Phase 2 (the next 4 months): VinCommerce supports strengthening identification and display systems for domestic products at the point of sale, promoting consumers to select and purchase domestic products, helping businesses domestic revenue is 5 times higher than before, while confirming the quality of domestic products compared to imported goods.
- Phase 3 (the last 4 months): VinCommerce focuses on integrating with the Vietnam High Quality Goods Business Association, agencies of local industry and trade departments, and the Trade Promotion Department of the Ministry of Industry and Trade to build support policies to support Vietnamese enterprises, and provide strategic advice to over 250 Vietnamese enterprises to expand production, upgrade quality, and optimize competitiveness with imported goods.
FUTURE DIRECTIONComes from the urgent need of Vietnamese suppliers to have a distribution channel, VinMart & VinMart+’s network is large enough to bring products and services into the market. As the Vietnam’s largest supermarket system, by April 2019 VinCommerce had over 114 supermarkets and 1,900 minimarts, that is the basis to ensure the best support for Vietnamese Partners and Suppliers in the future.
VinCommerce General Commercial Services Joint Stock Company, a subsidiary of Vingroup, specialises in the retail of consumer goods through a system of supermarkets and conveniences stores. The Company currently has 05 retail brands including: VinMart, VinMart+, VinPro, Vien Thong A, and Adayroi.com.