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Gia Lai producers raise standards to expand presence in modern retail chains

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Agricultural producers in Gia Lai are strengthening quality, traceability and supply chain management as they seek greater access to Vietnam’s modern retail networks, where requirements on consistency  and long-term supply remain major barriers despite the province’s strong agricultural base.

The Central Highlands province has 852 OCOP products rated between three and five stars, alongside a wide range of agricultural products certified under standards such as VietGAP, HACCP and ISO. However, officials say quality alone is no longer sufficient for entry into modern supermarket chains, with suppliers also expected to demonstrate stable production capacity, competitive pricing and reliable delivery.

Huong Dat An Phu One Member Limited Liability Company has gradually expanded from supplying traditional markets to developing VietGAP-certified production areas and supplying major supermarket chains.

Vegetables from Huong Dat An Phu One Member Limited Liability Company (An Phu Ward) are distributed through the Co.opmart supermarket system. Photo: V.T

According to Deputy Director Nguyen Nam Phong, the company delivers around 100 tonnes of vegetables and tubers each month to retailers including Co.opmart, WinMart and AEON. He said each retail chain applies its own standards, with long-term supply stability among the most important requirements.

The company is also receiving support to connect with the GO! supermarket system to further expand its market. Phong said stable market access gives producers greater confidence to enlarge cultivation areas and invest in modern processing and packaging equipment to improve production capacity and competitiveness.

BaKa Company Limited has taken a similar approach. Director Phan Ba Kien said the company’s three five-star OCOP products have created opportunities to enter more demanding markets.

Coffee products from BaKa Company Limited (Ia Hrung Commune) are gradually reaching more demanding markets. Photo: V.T

During its cooperation with the GO! retail system, the company received guidance on completing documentation and supplier procedures. Kien said BaKa has been able to satisfy retailers’ requirements by developing and linking approximately 200 hectares of raw material areas while investing comprehensively in modern machinery and equipment.

Nguyen Dinh Kha, Deputy Director of the provincial Department of Industry and Trade, said Gia Lai’s large number of certified agricultural products and 852 OCOP products provide a solid foundation for entering modern retail systems. However, he noted that suppliers must also maintain stable supply, competitive prices and dependable delivery capacity to remain competitive.

Retailers have also introduced comprehensive supplier requirements.

Nguyen Van Minh, Head of Marketing at Co.opmart Quy Nhon Supermarket, said the supermarket currently sells more than 200 products originating from Gia Lai, including vegetables, fruits, livestock and poultry meat, seafood and fresh bakery products.

Many types of fruit from Gia Lai meet quality standards and are gradually appearing in modern retail systems. Photo: V.T

Before products can be sold through the chain, suppliers receive guidance to complete legal documentation, product declarations and testing requirements before Saigon Co.op, the parent company of Co.opmart, approves supplier registration.

Gia Lai products already available in major retail systems include vegetables, coffee, dried beef, cashew nuts, macadamia nuts, wild bamboo shoots, dried noodles, rice paper and processed seafood.

Co.opmart currently stocks around 200 products from Gia Lai, while WinMart sources approximately 50 products from five suppliers. GO! is supporting around 40 businesses, cooperatives and production facilities in the province to complete documentation and procedures aimed at expanding product availability within its retail network.

Despite these gains, local participation in major retail chains remains below the province’s production potential.

Most businesses, cooperatives and production facilities continue to operate on a relatively small scale, with many products still limited to preliminary processing. Meanwhile, modern retailers impose strict standards covering traceability, quality control, packaging, logistics, management capability and long-term supply consistency.

As a result, many products recognised for their quality have yet to secure a place on supermarket shelves.

Nguyen Thi Bich Van, Communications Director of Central Retail Vietnam, said the company is working with businesses, cooperatives and OCOP producers in Gia Lai to complete the documentation required for wider distribution through the GO! and Tops Market retail systems nationwide.

She said the process has helped local producers adopt more systematic production methods and develop a more professional approach to the market. However, becoming an official supplier still requires full compliance with retail procedures, including demonstrating long-term supply capability, meeting packaging standards and satisfying logistics requirements.

Central Retail plans to expand cooperation with Gia Lai suppliers in categories including seafood, bakery products, processed noodles, coffee and fruit to increase the presence of local products across its nationwide retail network.

According to Kha, participation in modern retail chains not only increases sales volumes and enhances the value of local agricultural products but also strengthens long-term links between production and distribution, encouraging producers to shift from producing according to available capacity to producing in response to market demand.

Alongside trade promotion activities, the provincial industry and trade sector will continue implementing industrial promotion programmes that support businesses and cooperatives in investing in machinery, upgrading technology and improving production processes, with the aim of strengthening competitiveness and expanding market access for Gia Lai agricultural products.

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