Foreign enterprises used to dominate the sector of procurement for other companies, even machine accessories, in Vietnam. However, a local firm based in Ho Chi Minh City has ventured into the field and surpassed foreign rivals.

Deputy director of Real Value Trading and Service Co. Ltd. Tran Ngoc An said that the company’s capacity was proved as it could ensure the supply of many items, such as tents, bedding, and others serving the operation of enterprises, at the height of the COVID-19 pandemic. 

By applying technology, the company has secured more orders from other firms.

This company provides industrial dusters for cleaning expensive machine parts. The dusters are made of rag from factories producing apparel exports. 

However, these factories have faced a decline in orders this year, so the volume of rag is modest.

Dusters are one of the 30,000 locally-made and imported products supplied by Real Value to factories. 

It also helps other companies to buy brooms, tablecloths, calculators, uniforms, protective suits, and even machine accessories.

According to An, his partners are mainly large foreign direct investment (FDI) enterprises, such as P&G, Uni-President, and Mitsubishi, as well as giants in Vietnam’s consumer goods sector.

“With a portfolio of tens of thousands of products, we must apply technology, specifically administration and purchase management software, to operate effectively as foreign partners set out strict requirements in products, delivery, and management.” 

According to Do Hong Anh, director of the company, factories are in need of many sundries, while a manufacturer can supply certain products and their services fail to meet FDI firms’ requirements.

However, the local sector was dominated by foreign enterprises.

Therefore, after joining hands with international firms for two years, Real Value has been able to directly work with large customers without cooperating with international purchasing companies.

The company initially had two members and earned an annual revenue of several billion Vietnamese dong. (VND1 billion = US$42,010)

At present, it has 12 executives and employees and generates revenue of millions of U.S. dollars per year.

“The work does not take much time thanks to the application of technology. Executives of the company still have time to do business in other sectors,” Anh said.

“Having operated in the sector for more than ten years, many purchasing companies like us have yet to work face to face with many customers. All transactions are done online."

According to the chairman of a fast-moving consumer goods group in Vietnam, as Real Value operates online, the group’s products used for machinery maintenance and repair are supplied quickly, thus ensuring the continuous operation of its factory. 

At present, many companies have applied technology to contacting factories to keep track of orders thoroughly. 

An said that all stages, such as transport and delivery, at his company are managed and monitored. 

During the COVID-19 pandemic, many plants applied the stay-at-work mode, so they needed a lot of products. Thanks to software-based management, the company could manage its inventory. 

An said technology helps the firm circulate goods continuously. It just needs a small warehouse, thus reducing costs.

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