Vietnamese retailer helps expand market access in Canada

Established in 1981 as a family-run grocery store, Lucky Supermarket and Dong Phuong Group have grown into one of the largest Asian food retail and distribution networks in Western Canada. Over the past 45 years, the business has evolved beyond serving the Vietnamese community to become an important distribution channel for Vietnamese agricultural products, food and consumer goods.

Canadian importers view Vietnamese coffee and cocoa products at a trade promotion event in Canada. (Photo: VNA)
Canadian importers view Vietnamese coffee and cocoa products at a trade promotion event in Canada. (Photo: VNA)

Ottawa (VNA) – An integrated retail and distribution network built over more than four decades is helping expand the presence of Vietnamese products in Canada, providing domestic exporters with greater access to one of the world's most demanding consumer markets.

Established in 1981 as a family-run grocery store, Lucky Supermarket and Dong Phuong Group have grown into one of the largest Asian food retail and distribution networks in Western Canada. Over the past 45 years, the business has evolved beyond serving the Vietnamese community to become an important distribution channel for Vietnamese agricultural products, food and consumer goods.

Lucky currently operates nine supermarkets in Edmonton, Calgary, Winnipeg and Surrey, with each outlet covering between 2,300 sqm and 5,000 sqm. Supporting the retail chain is Dong Phuong Group, which manages import, logistics and wholesale distribution for Lucky as well as other retail networks across Canada.

According to Tran Thu Quynh, Trade Counsellor at the Vietnamese Embassy in Canada, Lucky and Dong Phuong Group are among the pioneering enterprises operating both wholesale and retail systems. Besides supplying Lucky's own stores, Dong Phuong also distributes products to several major supermarket chains in Canada, enabling Vietnamese goods to reach a broader range of consumers.

A notable feature of the company's business model is its direct sourcing network in Vietnam, allowing products to be shipped directly from factories and production areas to Canada rather than being routed through third countries. As a result, products of Vietnamese origin now account for around 30% of the merchandise sold by Lucky, a relatively high proportion for an overseas supermarket chain.

Each year, Dong Phuong Group imports approximately 500 containers of Vietnamese goods. While traditional products such as rice, fish sauce, coffee and dried foods continue to account for a significant share, the product range has expanded to include fresh fruit, beverages, processed foods, vegetarian products, household goods, ceramics and other consumer items.

The company plans to open an additional 10 supermarkets by 2030, a move expected to create further opportunities for Vietnamese products in the Canadian market.

According to Nguyen Tan Ba, founder of Lucky Supermarket, processed seafood, tropical fruit and rice continue to enjoy competitive advantages in Canada. However, consumer demand is shifting towards processed foods, convenience products, vegetarian and plant-based foods, as well as products designed for younger consumers.

He said these segments offer significant potential for Vietnamese exporters seeking to expand their presence in Canada.

Quynh noted that the growth of Lucky has not only increased the visibility of Vietnamese products but also enabled domestic businesses to connect more directly with Canada's modern retail and distribution system.

In recent years, the Vietnam Trade Office in Canada has worked with Lucky and Dong Phuong Group to organise a range of business-to-business (B2B) activities, bringing Canadian importers to Vietnam to identify suppliers while helping Vietnamese businesses adapt their products to better meet Canadian market requirements.

The Trade Office has also cooperated with businesses to promote Vietnamese brands through initiatives such as Vietnam Coffee Day in Canada, Lunar New Year product showcases and community events, contributing to greater awareness of Vietnamese products among Canadian consumers.

Despite the tariff advantages provided by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Vietnamese exporters continue to face challenges related to quarantine regulations, food safety requirements, packaging standards, product traceability and logistics costs.

In addition, a number of high-value products, including meat, eggs and dairy products, have yet to gain access to the Canadian market because of the country's strict sanitary regulations and supply management system.

Trade officials said Vietnamese enterprises should continue improving product quality, investing in value-added processing, developing convenience and plant-based foods, upgrading packaging and branding, and strengthening cooperation with importers that have established distribution networks in Canada.

Such efforts are expected to help Vietnamese products reach not only the Vietnamese community but also mainstream Canadian consumers and other ethnic communities.

With support from trade promotion agencies and the opportunities created by the CPTPP, closer cooperation between Vietnamese exporters and Canadian importers and retailers is expected to provide a stronger foundation for expanding the market share of Vietnamese goods in Canada./.

VNA

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