In the context of the strong transformation of the Vietnamese retail industry, the Ministry of Industry and Trade has oriented the development strategy of the Vietnamese retail market to 2030 and vision to 2050, with the goal of building a modern, transparent and sustainable distribution system, while forming retail corporations that are competitive in the region and raising the standards of domestic logistics and trade.
In that context, CEO Johnathan Hanh Nguyen - Chairman of IPPG Group, who has spent nearly 40 years leading the introduction of more than 138 international brands into Vietnam and building a retail - airport - duty free - logistics ecosystem according to global standards, has always been concerned with realizing the orientation of "Bringing the world's best to Vietnam and bringing Vietnamese best to the world".
CEO Johnathan Hanh Nguyen - Chairman of IPPG Group. Photo: NVCC.
Industry and Trade Newspaper reporter had a conversation with CEO Johnathan Hanh Nguyen - Chairman of IPPG Group.
Exporting Vietnamese brands internationally is feasible.
- Sir, as a business with a large market share in distributing high-end goods in Vietnam, how do you perceive the potential of exporting Vietnamese brands to international markets?
CEO Hanh Nguyen: The potential for exporting Vietnamese brands internationally is completely feasible and is expanding rapidly. Over the past 40 years, with the spirit of "bringing the world's best to Vietnam", IPPG has brought more than 138 international brands into distribution in the domestic market, contributing to putting Vietnam on the region's high-end retail map.
But the new stage has many conditions for Vietnamese brands to reach out globally. There are many factors to believe that this is completely feasible.
Firstly, Vietnam has achieved production and design capacity on par with the world. We are currently in the Top 3 in global fashion and footwear production. Skills, techniques, quality processes and raw materials have all met the standards of major fashion houses; helping Vietnam to move from “Made for the world” to “Vietnamese brand for the world.”
Second, regional lessons - domestic brands reaching international level. Many Asian countries have succeeded with their own domestic brands such as: Korea: Gentle Monster, Innisfree, Sulwhasoo are all present in dozens of countries. Thailand: Jim Thompson, Greyhound Original are distributed in the US, Japan, Singapore.
Singapore is famous for its creative brands with distinct identities: Charles & Keith (shoes and bags), Risis (gold-plated orchid jewelry) and TWG Tea - a high-end tea brand present in Paris, Dubai, Tokyo, London; becoming a symbol of "Asian luxury tea".
These brands are successful because they have developed good domestic distribution systems and cultural stories, built international quality standards, and chosen the right export channels.
Third , Vietnam has a population of 120 million, the fastest growing tourism - aviation - duty free industry in the region, and a generation of very strong creative businesses. Therefore, if other countries in the region can do it, Vietnam can completely build high-end brands with Vietnamese identity. From silk, handicrafts, tea - medicinal herbs, natural cosmetics to fashion.
“When we confidently bring Vietnamese quintessence to the world, that is when the world recognizes Vietnam's position.” IPPG is always ready to accompany Vietnamese businesses to turn potential into reality.
Vietnam's retail market has great growth potential.
- So what are the biggest barriers that businesses like IPPG are facing, sir? What should management agencies improve to ensure the sustainable development of the luxury retail market?
CEO Hanh Nguyen: From the perspective of a business that has cooperated with more than 138 international brands, I highly appreciate the reforms of ministries and branches in recent times in creating conditions for import businesses.
However, in reality, there are still some technical barriers, such as the application of customs valuation, HS code classification, or special consumption tax and import tax policies on luxury goods that are sometimes inconsistent between localities, increasing compliance costs and prolonging processing time.
In the context of Vietnam participating in many new generation FTAs, IPPG always takes advantage of tariff incentives from these agreements to optimize import prices, helping retail prices become more competitive for domestic consumers.
In terms of policy, we propose to continue moving towards a stable, consistent, and highly predictable legal framework for taxes and customs; having a mechanism for early guidance for new items, high-end products, or new business models; referring to international experience to ensure effective management, and encouraging businesses to invest long-term.
Taking advantage of the IPPG ecosystem to bring Vietnamese quintessence to the world
- IPPG owns a multi-industry ecosystem: luxury goods, airports, F&B... Could you tell us how the Group will use this advantage to connect the luxury goods import chain, promote selective exports, and increase added value for Vietnamese brands?
CEO Hanh Nguyen: IPPG owns a rare ecosystem in the region - from fashion retail, duty-free, airport retail to F&B and logistics - forming an international connection network that helps us implement the strategy "Import premium - Export selective".
In addition to bringing the world’s biggest brands to Vietnam, IPPG is also selecting and bringing a number of Vietnamese brands to the airport retail channel, which welcomes tens of millions of international tourists each year. This is a natural launching pad for Vietnamese brands to test the global market.
With experience working with more than 138 international brands, we understand the global standards for products, packaging, traceability and brand management. IPPG is supporting Vietnamese brands to upgrade to these standards to enter the international market systematically.
Currently, we have been selecting a number of typical Vietnamese brands, raising them to international standards and gradually bringing them into IPPG's regional and global retail network.
“Bringing the world’s best to Vietnam and bringing the Vietnamese best to the world” is IPPG’s consistent orientation. We believe that Vietnamese brands will conquer the world by value and class, not by quantity.
CEO Johnathan Hanh Nguyen: IPPG's development strategy is based on the principle of meeting international standards. Photo: NVCC.
- What is IPPG's strategy in building a high-end store brand in Vietnam to attract international brands? What policies do you propose to optimize high-end retail investment?
CEO Hanh Nguyen: IPPG's strategy when developing high-end retail spaces such as Rex Arcade or Trang Tien Plaza shopping spaces is always based on the principles of international standards: synchronous infrastructure and design, luxurious architecture, professional operation and management according to global standards.
These centers are connected to IPPG's retail - airport - duty-free ecosystem to create a synergistic effect, helping international brands confidently open flagship stores in Vietnam.
To optimize high-end retail investment, I recommend considering three policy groups: First, planning high-end retail areas in the city center, inviting professional shopping mall developers and operators to participate from the planning stage and transparent bidding based on criteria of financial capacity and ability to attract top international brands.
Second, perfecting the tax policy to approach international standards, reducing the gap with countries in the region to increase attractiveness for big brands. Third, creating a specific legal corridor for high-end retail and outlet malls, simplifying licensing and promotion procedures according to the characteristics of the fashion industry; ensuring a more transparent and stable environment for businesses to invest long-term.
Thank you!
Recently, the Government issued Decision 2326/QD-TTg approving the Strategy for developing the Vietnamese retail market to 2030, with a vision to 2050, with the goal of transforming the domestic retail network into a civilized, modern, and sustainable system closely linked to domestic trade orientation and international commitments. Accordingly, by 2030, the retail market must achieve an annual growth rate of 11% to 11.5% of total retail sales of consumer goods and services.
Source: https://congthuong.vn/ceo-johnathan-hanh-nguyen-chia-se-chien-luoc-dua-tinh-hoa-viet-ra-the-gioi-432542.html
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