Of the total, HCM City firms purchased goods worth VND13 trillion ($621.1 million) from these regions, and supplied goods worth VND6,000 trillion to the area. — Photo nld

HCM CITY (Biz Hub)— Links between businesses in HCM City and other cities and provinces in the southern region have improved as a result of a cooperation programme begun in late 2011.

Le Hoang Quan, chairman of the HCM City People's Committee, said under the programme, 520 contracts worth more than VND19 trillion (US$894.7 million) had been signed between city businesses and companies in the southeastern and southwestern regions.

Of the total, HCM City firms purchased goods worth VND13 trillion ($621.1 million) from these regions, and supplied goods worth VND6,000 trillion to the area.

Quan was speaking yesterday at a meeting in HCM City held to review the results of the programme.

Every day, three wholesale markets in the city receive an average of 8,000 tonnes of farm produce and food products transported to localities.

Truong Quang Hoai Nam, deputy chairman of the Can Tho City People's Committee, said the programme had helped businesses gain access to the distribution channel of HCM City.

He said that farmers and animal breeders were now more willing to make investments to supply quality products at reasonable prices to HCM City firms.

Do Thang Hai, deputy minister of Industry and Trade, praised the achievements of the programme but urged HCM City and other cities and provinces to identify potential businesses to improve product quality and brand building.

Other goals include the prevention and control of fake products and trade fraud, as well as the development of hygienic brands, he said.

Nam suggested that HCM City create conditions to help businesses expand outlets for products made in Can Tho and the Mekong Delta, and build logistic centres in the region to cut transport costs.

New connections

The meeting also included linkages between producers and distributors. More than 1,100 producers, distributors, wholesale markets, restaurants, hotels, and eateries from 38 areas nationwide have participated.

Le Ngoc Dao, deputy director of the Department of Industry and Trade, said the linkages help provide outlets for companies' products.

Distributors provide businesses and co-operatives with necessary information about quality standards required by the city's distribution system, Dao said.

More and more businesses have joined in the programme, she added.

Last year, 23 provinces and 347 companies attended the second event, with 229 contracts signed. In 2012, 14 provinces and 198 businesses took part.

At the event yesterday, 347 contracts were signed between producers and supermarkets, wholesale markets, and distributors like Co-opmart, Citimart, Maximark and Big C.

Nguyen Thi Hanh, Saigon Co.op general director, said Saigon Co.op had created favourable conditions to help producers sell their products to its retail chain.

Under contracts signed with local producers, the company in the past year helped companies make better, safer, well-packaged products at reasonable prices.

Phan Thanh Binh, general director of Bich Chi Food Company, said distributors who had signed contracts with the company offered instruction in food hygiene and safety processes, and packaging of products. Beginning next year, when the ASEAN Economic Community comes into effect, local producers are expected to face fierce competition in the domestic market.

Developing closer linkages in production and trading would be vital for local companies, Quan said. — VNS