By: Kyodo News
Retail giant Aeon Co will seek to purchase US$1 billion (32 billion baht) worth of products from Vietnam in 2025, with the nation seen as having great potential as a supplier of quality food for Japanese consumers.
The company will double the value of products it procures from Vietnam from the current level to $500 million in 2020 and expand it twofold over the following five-year period, a senior Aeon official told a meeting of its suppliers in Hanoi.
The total value of Vietnamese goods imported for sale at Aeon outlets in Japan rose 7.6% in 2018 from the previous year to 26.5 billion yen (7.6 billion baht), with clothing accounting for 55% of the total.
“Food has room to grow further,” said Eiji Shibata, executive officer and chief merchandising and logistics officer of the Japanese retailer, noting that the Aeon group’s food sales make up about 70% of the total in Japan.
“For example, we could ship organic vegetables from Vietnam with the help of cutting-edge refrigeration technology,” he said.
About 240 suppliers to Aeon Vietnam Co, its local store operator, and Aeon Topvalu Vietnam Co, a product development and procurement arm established in 2016, gathered for the Hanoi meeting.
Amid the escalating US-China trade dispute, the Aeon group understands the value of Vietnam as a strategic base, Shibata said.
The article is first published HERE on June 14, 2019.