CRV: Bridging Vietnam’s Supply Chain Modernisation Gap

Vietnam's supply chain industry is facing a crisis of execution; the theory of modern logistics is well-known, but putting that knowledge into practice remains just out of reach for some. 

The industry must pivot from outdated, traditional processes to a modern, efficient model to capture future growth.

Central Retail in Vietnam (CRV), part of Thailand’s Central Retail Corporation, is hoping to lead this transformation through education, by raising standards, strengthening supplier relationships and driving both centralisation and collaboration.

Bringing nearly 40 years of experience, CRV’s Chief Supply Chain Officer Mike Reid - or bác Mike, as he has become affectionately known - believes focusing on people is the way to achieve these goals across the region. 

“First and foremost, I’m passionate about my team, people, building teams and developing teams – and just as passionate about retail supply chain,” he says.

Mike’s journey to CRV includes senior roles in the UK and across 12 Asian markets, including in China, Hong Kong, Singapore and Thailand, before arriving in Vietnam. 

“You never know when you set out where you’re going to end up,” he adds. “I embrace a mindset to go and gather new experiences, meet new people and sometimes find new environments to apply what I love doing, with fresh challenges and different teams."

This has given Mike a wealth of experience with different cultures and different ways of leading and landing transformative change. Now, CRV operates more than 330 stores and welcomes in excess of half a million daily visitors. 

“Last week, I was in Yen Bai for a new hypermarket opening,” he reflects. “The store was absolutely bouncing. That’s what’s really special – reaching people far from the big cities with a modern retail offer.”

“We put the customer first,” Mike continues, “and we put service before cash, and cash before cost.

“If you take care of customers, you win their loyalty, then you win the volume and, ultimately, the efficiency game follows.”

This approach extends to CRV’s internal operations. Mike explains that the CEO is focused on cross-functional collaboration, breaking down silos and other people-led shifts. For him, this is a reflection of Vietnam’s welcoming culture: “It’s probably the easiest place I've been to build teams.” 

He adds that most people, especially the younger generations, are “genuinely engaged to listen, learn and apply new skills and new ways of operating.”

While other cultural differences across Asia and beyond do shape the way retailers do business, Mike prefers to focus on common ground: “Everyone loves an opportunity to get on and everyone loves to enjoy themselves at work. If you treat people the way you expect to be treated, you won’t go far wrong.”

As Vietnam’s retail sales rise – up 10.6% in 2025 according to the National Statistics Office – CRV’s people-first approach is setting it up for a future of continued growth.

Closing the modernisation gap

There is increasing awareness in Vietnam of modern supply chain principles, such as centralisation and digitalisation, but, like many regions, the area faces a gap between theory and practice. 

Mike highlights an uncomfortable truth for some: technology can't simply replace foundational processes. 

“I want to talk to them about delivering their goods on time, on pallets and in proper packaging with the correct bar code,” he says. “The robots won’t work if we don’t have barcodes in the system, if the suppliers trucks don’t turn up on time or they don’t deliver what we order. Some major FMCG suppliers regularly fail to deliver more than 30% of orders.”

This reliance on technology over process, coupled with a lack of modern training, leaves major gaps. 

“Teams here haven’t been exposed to the right sort of training – basic root cause analysis, the five-whys and other problem-solving skills and routines…that’s what we take for granted,” he goes on. “That foundational skillset has been missed by the younger generation.”

CRV’s answer is its Supply Chain Academy, where comprehensive training meets on-the-ground work. Staff gain expertise in the entire supply chain: warehouse management, transport logistics, load security, temperature control and rigorous store checks. The programme then builds on this foundation, introducing strategic skills like problem-solving, change management and advanced demand planning – ensuring attendees have an overview of both basic forecasting and modern, data-driven methods. 

“If there’s a problem, we don't just talk about it. We take the team straight to the source, the warehouse or the store, to conduct root cause exercises together in real-time," notes Mike.

Some other flaws exist in Vietnam’s supply chains, as Mike explains: “There’s not a lot of collaboration or coalition between suppliers and retailers.” 

He says they have a fear of losing control, stopping them from embracing centralisation, but argues “the direct to store model actually dilutes the control, undermines availability and loses sales.” 

Another issue is trust with logistics providers. “Traditionally, Logistics Service Providers have endured short-term procurement and price-led transactional processes,” Mike says. “The focus is on a narrow part of the value chain, rather than on developing long-term, sustainable, and efficient Supply Chain solutions."

Mike worked hard to correct this imbalance. He explains: “We're prepared to commit for the longer term and build partnerships where both parties can truly win.”

He adds: “FM Logistic and GEODIS are just two great case studies where we have successfully transitioned from a transactional approach to a true partnership model to remove supply chain bottlenecks and create end to end value.”

Crucially, this commitment extends to joint investment in shared equipment, such as roll cages and plastic crates, which directly improves product freshness, load stability and transport efficiency for everyone.

For Mike, chasing automation without strong foundations would be another big mistake.

So, what’s CRV’s solution? 

“Let’s first of all start with suppliers delivering what we order, on time, in full, so that we can deliver what our stores want when they need it.”

Building modern retail foundations

A centralised distribution centre improves local conditions, reduces environmental impact and boosts national supply chain efficiency. 

Mike asserts: “It’s going to take key industry leaders in Vietnam to wake up to the fact that coalition, collaboration and centralisation are absolutely essential for Vietnam’s prosperity.”

“Most people wouldn’t be able to imagine running a chain of hypermarkets without a centralised supply chain,” he says. However, in Vietnam the logistics inefficiency is clear: “Compared to Thailand, Vietnam has twice as many trucks registered… yet hauls half the payload.”

Mike warns that, without addressing structural constraints, suppliers will miss growth opportunities: “The direct to store delivery model does not work, yet many large suppliers that should know better cling to that outdated way of working. Their constrained supply chain is holding the country back, holding their business back.”

For him, this is as much about people as it is about operations. 

“We're trying to change an industry and build up supply chain as a real modern profession in Vietnam,” he adds.

The P&G partnership: A blueprint for change

CRV has put its modernisation theory into practice through its landmark collaboration with P&G and other suppliers. 

Mike explains: “Previously, CRV had not put in place the foundations… we didn’t connect the systems, we didn’t have the right routines in place; people don’t know what they don’t know. We had to collaborate differently.”

With P&G, the difference was a shared commitment to change. 

“They said, ‘we’ll do this with you’. P&G have got a hunger for trying to do things differently and challenge the status quo in Vietnam.” 

Starting with mini go! stores, CRV improved delivery frequency by shifting from direct store shipments to centralised DC-based fulfilment.

“Almost immediately on-shelf availability started to improve,” says Mike, “and the stores saw sales going up.” 

The result was a smooth transition across formats and regions with “no disruption to stores, without any negative consequence. This actually made work for team members in stories easier.”

One central element to the transition was transparency: “We developed a dashboard that can give suppliers visibility of in-store out of stocks for each of their SKUs in each of the stores every day.” 

The aim was not blame, but clarity – in other words, “Whatever is wrong, let’s take action to fix it.”

This improvement to data led to more reliable ordering and clearer root cause analysis. The hope is that P&G’s example will now encourage other suppliers to follow. 

Mike expands: “We found someone willing to take that step and now I don’t think they could imagine a different way of doing business.”

A vision for Vietnam’s supply chains

Ultimately, CRV wants to lift the entire industry’s standards, with ambition extending well beyond its own operations. 

“Success breeds success,” says Mike. “The more people see it working, the more willing people will be to get on board.”

CRV’s focus on training, collaboration and foundational excellence lays the groundwork for a retail supply chain that is efficient, resilient and ready for future growth.

Mike concludes: “That can only help Vietnam grow when more people start to enjoy the benefits of modern retail.”