Rising production costs in China has prompted Japanese retail giant Aeon Co to shift base to Vietnam for sourcing of products. In recent times, more and more procurements of Aeon are taking place from Vietnam.
The retail chain group had recently held a conclave of 120 companies in Vietnam as a part of the supplier chain meeting. The meeting called for the joint development of apparels and other products that are sourced from Vietnam largely.
Aeon is all set to increase the value of goods procured from Vietnam over the past years to a whopping Japanese Yen 22 billion (USD 200 million). In the recent past the growth in escalation of sourcing has always been over the double digit mark.
Kazuhiko Yauskawa, the chief officer of the group merchandising division at Aeon was upbeat about the move and said in a media statement, “Never have the procurements from Vietnam been small in comparison with other countries. Apparel sourcing amounts for nearly 70% of the sourcing from Vietnam.”
Speaking at the supplier meeting, Do Thang Hai, vice industry and trade minister for Vietnam said, “We hope that Aeon would cooperate in enhancing our country’s exports through the introduction of increasing number of Vietnamese products.”