HO CHI MINH UNION OF TRADING AND CONSUMER COOPERATIVES
(SAIGONCO-OP)
“ A STEP FORWARD”
New starting…
In May 1989, SAIGONCO-OP was re-established on the basis of restructuring the personnel of
the management boards of consumer cooperatives and business affiliated units and promoters in Ho
Chi Minh city. This could happen after seven long years of consolidation and renovation while
overcoming the prejudices and weaknesses in the transition period from centrally planned subsidized
economic system to the market economy. However, the cooperative imbibed the true spirit of
continuously learning from the various experiences, like its joint ventures and import-export activities
with the well known companies such as Pepsi Cola, Gilletle (USA), Japanese companies, Singaporean
companies, etc. SAIGONCO-OP gradually built up its own image and won the trust of the people. It
slowly emerged as a reliable import-export cooperative which established bonds of cooperation with
100 companies which were its customers. The exports in 1990 was 4 million USD which went up to
51 million USD in 1995. Such business activities of the cooperative helped it to adopt
the modern
management techniques. It also equipped the managers to understand the new business requirements
in the market economy. Since 1995 after 9 years of “Doi moi” cause and the open door policies of
Vietnam which had strongly pushed up the economic growth, there was improvement in the life of
the common people. Beginning from retailing sales as a strong point, with the support and experiences
of ICA, KFPC, Japan, Singapore etc, SAIGONCO-OP in a
change of strategy set up self service
supermarkets. However, this form was completely new with the enterprises in Vietnam ,more
particularly the cooperative sector . In 1996, SAIGONCO-OP
set up the first supermarket with the
name of Co.opMart Cống Quỳnh which is the first supermarket in the cooperative sector in Ho Chi
Minh city with the modern and new retailing ways in conformity with the development trends of the
society. This not only provides best services to the customers, but CoopMart Cống Quỳnh is also well
supported by the consumers.
In the process of confirmation and development…
Since the start of successful operation of the first Co.opMart supermarket, this has generated trust
which has led to the establishment of chains of supermarkets such as Co.opMart Hâ ̣u Giang , Nguyễn
Đình Chiể u , Đinh Tiên Hoàng , Phú Lâm , Thắ ng Lơ ̣i ... It has further affirmed that the cooperative
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sector has full capabilities to compete with other sectors in the market economy if the right models are
chosen. After 20 years of construction and development, SAIGONCO-OP has established its prestige
in the competitive market. At present, the total asset values of SAIGONCO-OP is over 3,300 billion
VND without other invisible asset values such as trademarks, brand name, intellectual property rights,
etc. The operations of
SAIGONCO-OP have spread in other sectors such as wholesales, import-
export, production and investment, etc. All this is focused on retail business including 51 supermarkets
with the logo “Co.opMart” in the country. 92 Co.op stores, 23 Co.op Food stores and Bến Thành store
have been supported by the consumers in a big way.200,000 customers visit these stores daily. The
average turnover growth of SAIGONCO-OP is over 37%/year and taxes payment is over 35%, creating
jobs for 10,000 labourers in the country. The total turnover of Saigon Co.op including Co.opMart
supermarkets in 1996 was 27 billion VND with the ratio of 3,125%.But,this reached to the level of
96,6%% in 2010. It is once again affirmed that changing the direction to retail supermarkets operation
is correct and in conformity with the needs of the society’s development. The development space of
SAIGONCO-OP and
CoopMart
have increased. Particularly in the past 5 years, SAIGONCO-OP
achieved stability and confirmed its trademarks with the partners and consumers.
When mentioning the name of SAIGONCO-OP, the devotion of the suppliers to the local
products becomes important. Since the launch of the campaign of “the Vietnamese people use the
Vietnamese products”, SAIGONCO-OP has carried out many promotion programmes. Co.opMart is a
place to advertise and promote the Vietnamese brand names. This has
encouraged the producers to
lay emphasis on technology, and experiment with varied designs and models. This has also helped
the customers to know about the Vietnamese brand names. It has definitely encouraged the habits of
using local products and discouraging the practice of consuming imported products. The turnover of
high quality products of Vietnam increased 140 -150% on an yearly basis. SAIGONCO-OP is a first
partner to take in the safe food items
so as to sell them in the supermarkets under the inspection of
authorized organizations. This has created comfort for the customers regarding the new products. With
the profitable business operations, SAIGONCO-OP has implemented series of projects such as
construction of Trading Plaza, Co.opMart supermarkets in Hồ Chí Minh city and in other provinces of
Vietnam. SAIGONCO-OP and Co.opMart
nationally. In the past few years,
have gradually become the chain of supermarkets
SAIGONCO-OP Co.opMart supermarkets
have become the
effective tool of the city to regulate the market, stabilise the prices of the necessity items and
implement safe and secure policies.
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From the beginning, SAIGONCO-OP had identified that personnel and modern technology are
decisive elements for its success. It applied for ISO 9001:2008 in business and managing supermarkets.
While investing in logistics supplying system, it
modernized three supplying centres in order to
supply the good quality products and in time for the Co.opMart supermarkets in the cities of different
regions of Vietnam. SAIGONCO-OP continues to improve the new programmes of reporting so as to
not only help the management but also facilitate effective business. Especially, SAIGONCO-OP has
also shown due concern to HRD programmes both in quantity and quality. At present, Saigon Co.op
has over 45% of the total officers who graduated from the colleges, universities and have also obtained
masters degree. SAIGONCO-OP always gives primacy to HRD policy, creates friendly working
environment and also implements the attractive compensation policies to recruit the deserving talents
which can contribute to the success of SAIGONCO-OP.
After a point of time,
international
economic
when Vietnam became a 150th member of WTO, pushing up the
integration,
implementing
the
commitments
and
agreements,
etc,
SAIGONCO-OP slowly started renovating the organizational structure, consolidating the managerial
units and also increasing the business effectiveness in order to become a powerful retailing group in
Vietnam. The establishment of SAIGON CO-OP Development and Investment Joint Stock Company
(SCID) is aimed to develop the trading infrastructure of SAIGONCO-OP and other businesses.
Besides, SAIGONCO-OP has joint ventures with the local and foreign companies to implement the big
scale projects. With such achievements, SAIGONCO-OP has created the Vietnamese trademark of the
cooperative sector as far as renovation, integrated development and growth of cooperative sector are
concerned. It has indeed become a good example of the cooperative sector in the first years of
renovation.
In the coming years, SAIGONCO-OP will strive to establish an average of 10 new Co.opMart
supermarkets every year. This number will reach to 50 supermarkets in 2010 and 100 supermarkets in
2015 with the size of 500m2 to 10.000m2. 200 Co.op Food stores in the whole country will be opened
which will attract 1,700 labourers every year. SAIGONCO-OP will also continue to train
the
labourers, officers, managers, etc.
Bringing in to full play of strength and cooperative spirits…
To be proud of a cooperative and become the foundation of the collective economy, the members
have to always affirm their faith in the cooperative. A strong cooperative is now built which is able to
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to compete with other economic groups in different sectors. The officers of SAIGONCO-OP strive to
work for common benefits in the motto of “one for all and all for one”.
Always concern for the community and the society
All the business activities of SAIGONCO-OP are geared towards
serving the communities and
developing the economy. All this will ensure quality, promote health safety of the products and also
protect the health of the consumers. Saigon Co.op has
always been concerned
to protect the
environment and in 2009, SAIGONCOOP started using the multi used bags so as to reduce the use of
nylon bags and in 2010, Saigon Cop.op started using the self-destructive bags which are supported by
the consumers. 10,000 labourers of SAIGONCO-OP are the main force to launch a campaign to
protect the environment without using the plastic bags. Every year SAIGON CO-OP donates 3 billion
VND for charity activities such as constructing houses for the poor, poor patients and children,
carrying out blood donation; and also organising mobile trucks in large numbers to sell the products in
the remote and mountainous regions.
Very proud achievements
With many achievements in the past years, SAIGONCO-OP has been awarded by the Government
and authorities at the different levels (Labour Hero medal in the renovation period in 2000, First grade
Labor Medal in 2002, Third Grade Independence Medal in 2010, Governmental Emulation Awards in
consecutive years, Awards, Emulation Certificates of Vietnam Cooperative Alliance. Ho Chi Minh
People’s Committee and more... SAIGON CO-OP is one of top 200 enterprises in Vietnam selected by
the UNDP project. In the international arena, SAIGON CO-Op is amongst the top ten of the best 300
cooperatives selected by ICA; and it has also become the leading retailer in Vietnam selected by AsiaPacific Retailing Newspapers. It is at the top of 500 retailer groups in Asia and the Pacific in 7
consecutive years (2004-2010). All the achievements have once again emphasised the vital importance
of the cooperative sector in the socialist oriented market economy. This has also created its own
Vietnamese trademark that has demonstrated the success of the renovation methods in Vietnam.
However, SAIGON CO-OP always strives for best so as to become a shining example for other
Co.opMart supermarkets in not only Vietnam but also other countries of the world.
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