Ministry Proposes 15-20 Local Distributors to Counterbalance Foreign Rivals

The Vietnamese Ministry of Trade will seek government’s approval to choose and support 15-20 domestic distributors in order to counterbalance foreign giants when Vietnam joins the World Trade Organization (WTO), according to State media.

 

The ministry will also ask for some policies to develop the key national distribution network and propose to provide the chosen distributors with temporary subsidies to help them develop.

 

Local experts say that, in the face of pressure of foreign distribution giants, policy makers as well as local distribution firms should have suitable development plans.  

 

Vietnamese firms should raise their competitiveness and association in production and take the initiative in distribution when the country integrates into the world economy. Low labor cost will no longer be an advantage, according to the experts.  

 

As well as remarks by other experts, doctoral Tran Du Lich, the head of the HCM City Economics Institute, say the two most important factors - model design and distribution – of production and business activities are foible of Vietnamese firms. Vietnamese enterprises now depend very much on foreign distributors such as Metro and Big C.

 

When Vietnam joins the WTO, Wal-Mart of the US, Carefour of France, Tesco of the UK, Lotte Shopping of South Korea, Diary Farm of Hong Kong and South Asia Investment Pte. of Singapore are also expected to enter Vietnam, which has a population of more than 80 million people, half of which is aged less than 30 and a consumption ratio accounts for more than 70 per cent of GDP, a high level compared to regional countries.