Central Group orders Big C to suspend purchasing soft-line products of Vietnam

10:57 | 04/07/2019
Big C Vietnam has just announced to suspend all purchasing of soft-line products from local suppliers from July.
central group orders big c to suspend purchasing soft line products of vietnam
Central Group directs Big C to suspend purchasing soft-line products of Vietnam

On July 2, 2019, Central Group Vietnam, the owner of Big C Vietnam, informed "suspending all purchasing activities regarding soft-line products from all Vietnamese soft-line suppliers, effective from July 2019, in order to prepare for our project of restructuring ur soft-line department in Vietnam."

The retailer confirmed the temporary suspension of orders of soft-line products in accordance with the Commercial Co-operation Agreement between suppliers and Central Group Vietnam, effective from July 2019 until further notice.

"All outstanding issues that occurred before July 2, 2019 shall be settled in accordance with Commercial Co-operation Agreement," Big C Vietnam messaged the partners.

The supermarket chain explained that the temporary suspension of orders is part of its development strategy following the directions of Central Group in Thailand.

"We hope that our announcement in advance may help you in arranging new plans for your business. We would be happy to address all your concerns during the transition," Big C Vietnam told suppliers.

This announcement was made in the evening of July 2 and all soft-line products have already been returned to the Vietnamese suppliers.

central group orders big c to suspend purchasing soft line products of vietnam
Hundreds of suppliers arrived to protest in front of Central Group's office on July 3

Right after the announcement was made, netizens took to social media to express their anger at the Thai retailer and call for a boycott of the Big C chain and its Thai products. Some said this is a golden opportunity for local retailers like Vinmart to extend the reach.

In the afternoon of July 3, numerous businesses and employees gathered at Central Group's office on Phan Dang Luu Street, Ho Chi Minh City, protesting the retailer's decision with banners.

Some business experts were concerned that if Big C's decision passes without any sort of backlash, a lot of Vietnamese goods in foreign supermarkets would be gradually replaced by foreign ones.

Earlier, Central Group and Big C have received complaints about the shrinking presence of local goods on their shelves, a case caused by the Thai retailer's demands for very high discounts and fees.

central group orders big c to suspend purchasing soft line products of vietnam
Local suppliers gathering at Central Group's office on Phan Dang Luu street, Ho Chi Minh City with banners decrying unethical business practices

By Nguyen Huong

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