Walmart plans to turn Vietnam into a goods supply center of Asia

US retail giant Walmart envisions transforming Vietnam into a central hub for goods supply in Asia, Ms. Andrea Albright, Executive Vice President of Sourcing at Walmart, said during discussions with Minister of Industry and Trade Nguyen Hong Dien in San Francisco on November 14.

She emphasized that Vietnam ranks among the top five major suppliers to Walmart’s global supply chain, extending its influence not only in the US but also in other markets such as China, Canada, and Mexico.

Walmart annually procures billions of dollars in goods from Vietnam, primarily garments and textiles, leather and footwear, and food, Ms. Albright noted. The retailer also plans to expand its purchases from the country in the near future, including household utensils, electronics, and various types of toys.

She proposed that the Ministry of Industry and Trade (MoIT) help the retail giant in expanding its operations and enhancing the stability of its supply chain in Vietnam. This is particularly crucial amid the growing risk of supply chain disruptions arising from trade conflicts and global geopolitical tensions.

For his part, Minister Dien expressed his appreciation of Walmart’s strategy of diversifying its supply sources and his gratitude for it selecting Vietnam as a focal point for its future supply chain development.

He suggested that, in the future, Walmart not only strengthen its procurement activities in Vietnam but also enhance cooperation with units under the MoIT. This should focus on training, improving business capabilities, and disseminating market information, enabling enterprises to proactively develop production and export strategies when participating in the global distribution, wholesale, and retail system.

As one of the world’s factories, Vietnam is actively and proactively participating in the global production network and value chains. Therefore, its perspective is to continue developing supporting industries, thereby actively securing raw materials and input components, making efforts to ensure a “clean and stable supply” chain. This aligns with the absolute compliance with the commitments to sustainable development Vietnam has undertaken in free trade agreements, including the protection of nature and the environment and the fight against forced labor, Minister Dien noted.

On this occasion, he extended an invitation to Walmart to take part in Vietnam International Sourcing, a series of events aimed at connecting international supply chains, scheduled for June 2024.

Accepting the invitation, Walmart agreed to send a high-level delegation to the event. The retailer also proposed intensifying guidance, training, and development for Vietnamese suppliers during the event, to enable effective exports to the Walmart Marketplace e-commerce platform, thereby gaining access to the Walmart system worldwide.