VN suppliers protest Big C’s demands
The Vietnam Association of Seafood Exporters and Producers has asked the supermarket chain Big C to refrain from asking for higher discount rates from Vietnamese suppliers, and has recommended a maximum rate of 15 per cent.
Several Vietnamese suppliers have expressed concern about the Big C chain’s demand for higher discounts on their orders.
Thai food products could end up dominating the shelves of Big C Vietnam’s outlets, one of the country’s biggest supermarket chains, now owned by Thailand’s Central Group, experts have warned.
Setting up its new empire, the Thai firm has asked for higher discounts from Vietnamese food processing enterprises, forcing them to withdraw from the retail system.
Among the supermarkets in Vietnam, Big C has the highest discounts from suppliers, of 17-20 per cent, 5 percentage points higher than the rate last year, according to a director of a Vietnamese seafood processing enterprise.
Numerous products have discount rates of up to 25 per cent.
Along with unreasonably high discounts, Vietnamese enterprises have to cope with many fees, including fees for Big C’s promotions, product testing, customer festivals and Big C birthdays, as well as other minor fees.
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