AEON targets US$1 billion in Vietnamese goods sales

09:06 | 19/07/2019 Trade

(VEN) - Under a memorandum of understanding (MoU) signed in 2018 between the Ministry of Industry and Trade (MoIT) and the AEON Group, the Japanese retail giant pledged to support the export of Vietnamese goods via its distribution system, targeting US$500 million by 2020 and US$1 billion by 2025.

aeon targets us 1 billion in vietnamese goods sales

Shibata Eiji, Vice President of the AEON Group, described the MoU at the AEON suppliers’ conference 2019 that took place for the first time in Hanoi recently.

According to Shibata Eiji, Japan began importing Vietnamese Tra fish in 2013 with a modest volume of five tonnes. In 2018, the import volume increased twenty-fold to 100 tonnes. The export of other kinds of Vietnamese goods to Japan, such as suitcases, fashion products and food, has also grown strongly. In 2018, US$250 million worth of Vietnamese goods were exported to Japan via AEON’s distribution system.

Unlike many other businesses focusing on one specific area, the AEON Group is determined to maintain its operations in various fields by developing specialized shops and splitting food stores in order to generate profits for partners in Vietnam and other Asian countries. AEON is promoting specialized trade in food, clothing and home appliances, and Vietnamese businesses can boost the export of these products to Japan via AEON.

“Japan in general and the AEON Group in particular have very high demand for various kinds of goods. However, Vietnamese exporters have to meet strict requirements of Japanese importers. For example, food companies are required to ensure product safety for consumer health and do business in a sustainable and moral manner,” Shibata Eiji said. He told conference participants that the Japanese agricultural sector has faced numerous difficulties because organic farming did not yield desired results, requiring the import of frozen food from the US and Australia. Vietnamese organic products can be frozen with advanced technology for export to Japan through AEON.

Deputy Minister of Industry and Trade Do Thang Hai said that the AEON Group had organized a number of events to help Japanese consumers learn about Vietnamese products and culture.

“The MoIT is committed to creating favorable conditions for major foreign groups, including AEON, to develop strongly in Vietnam. The ministry encourages domestic businesses to bring into play their creativity and enhance their capacity to meet the requirements of foreign partners and join supply chains to take Vietnamese goods into foreign distribution networks,” Deputy Minister Do Thang Hai said.

The AEON Group had organized a number of events to help Japanese consumers learn about Vietnamese products

and culture.

Ngoc Lan