High expectations for Vietnam International Sourcing 2023 and the EVFTA.

Sir, as the world's largest privately owned furniture retailer, how has IKEA sourced its materials from Vietnam in recent years? What are your observations regarding furniture products originating from Vietnam?

Mr. Giafar Safaverdi - Regional Supply Manager for Southeast Asia – IKEA Group

We have been present in Vietnam through procurement and supply since 1993 and have continuously expanded our cooperation with various domestic suppliers over the years. Globally, we constantly strive to work with our suppliers to create the highest quality and safest products for consumers, regardless of where they are manufactured. Therefore, IKEA's suppliers in Vietnam share a common vision, culture, and values ​​in creating high-quality, functional, affordable, and sustainable home furnishings.

Vietnam possesses increasingly developed production capacity and policies that create favorable conditions for import and export activities. Along with many advantages in the logistics sector, this has made Vietnam an important link in our global supply chain.

What are IKEA's criteria for selecting suppliers, sir? What criteria must a Vietnamese business meet to become a partner of IKEA in particular, and furniture retailers in Sweden in general?

For IKEA, our suppliers and service providers play a crucial role in creating a better daily life for many people. Together, we explore new ways to operate and grow our business responsibly and environmentally, partnering to address challenges and collaborate to create positive change. We select suppliers who share our values ​​and aspirations to make a positive impact on humanity and the planet.

IKEA is one of the world's largest privately owned furniture retailers.

Therefore, we have developed the IWAY standard – a Code of Responsible Procurement and Supply – as a core foundation for IKEA's business operations with its suppliers. IWAY is how IKEA and its suppliers ensure responsible sourcing of products, services, materials, and components by defining clear expectations and working methods for suppliers, ensuring business practices are always environmentally friendly, socially responsible, beneficial to workers' conditions, and beneficial to animal welfare. Implementing the IWAY standards is also a prerequisite and mandatory requirement for all suppliers and service providers working with IKEA. The IWAY code aims to create meaningful employment for all workers and contribute to positive change in local communities throughout IKEA's global value chain.

Currently, Vietnam is emerging as one of the world's largest wood product export markets . What are your expectations regarding sourcing and importing goods from Vietnam when participating in Viet Nam International Sourcing 2023?

Vietnam is an important timber supplier market for IKEA's suppliers. It provides a large quantity of acacia wood – a dark-colored wood with certified origins by the Forest Stewardship Council (FSC), suitable for our outdoor furniture products.

In the near future, we will be exploring the procurement of rubberwood for various applications in furniture manufacturing. For decades, we have worked with various partners in Vietnam to improve sustainable forest management. Regardless of where our suppliers source their wood, to minimize the risk of wood not meeting supply chain requirements, including legal requirements, we require our partners to only supply and use FSC-certified wood materials.

We hope that through this series of events, we can focus on building and sharing knowledge to improve timber sourcing alongside sustainable forest management, thereby enhancing livelihoods and strengthening resilience to climate change, in order to be ready to accept any changes in supply conditions from different markets around the world.

By participating in Viet Nam International Sourcing 2023, IKEA also aims to share its process of building a sustainable supply chain in line with its sustainable development strategy, "People & Planet Positive Strategy," encompassing all activities in IKEA's global value chain. Furthermore, we seek to update information and experiences from participating businesses and contribute to promoting Vietnam's role as a highly competitive sourcing location.

The EVFTA has been creating great opportunities for Vietnamese goods in Sweden in particular and Europe in general. What advice do you have for Vietnamese businesses to effectively utilize this agreement and penetrate deeper into the Swedish and European markets?

The EVFTA agreement is a crucial tool in boosting Vietnam's production and export capabilities. Manufacturers should focus on maintaining high product standards and quality, and research global consumer trends and preferences to leverage their existing advantages. Furthermore, businesses should build strong distribution networks and focus on developing sustainable business practices to maximize the opportunities offered by the agreement.

Thank you, sir!

Starting from a souvenir shop founded in 1943, IKEA has now become a leading global furniture brand with revenues exceeding $40 billion since 2019, welcoming 1 billion customers to its stores annually and present in over 50 markets. Besides Sweden and the Nordic region – IKEA's birthplace – the company's furniture market focuses primarily on the United States, the United Kingdom, Germany, and the Netherlands.

Source link: https://congthuong.vn/ky-vong-lon-vao-viet-nam-international-sourcing-2023-va-evfta-270969.html