Lidl, one of Europe’s largest supermarket retailers, is reinforcing its supply chain resilience by shifting more sourcing to Vietnam and Malaysia. The move comes amid rising global uncertainties and growing demand for diversified import markets.
The company’s parent, Schwarz Group, established Tailwind Shipping Lines in 2022 to secure greater control over logistics and ensure reliable delivery to its European network. In just two years, Tailwind has grown into Germany’s second-largest shipping company, operating a fleet of nine container vessels. The company recently expanded its Asia network by adding Ho Chi Minh City and Malaysia’s Port Klang to its established routes, which previously connected Bangladesh and Sri Lanka.
Port Klang has now taken over from Colombo as Tailwind’s main transshipment hub in Asia, creating a stronger link to the primary shipping corridor between China and Europe. “With this intra-Asia service, we provide a reliable transportation solution for industries such as raw materials and finished goods in the textile sector, as well as many other fields,” said Nico Peters, Vice President for commercial management at Tailwind.
Lidl operates more than 12,000 stores across Europe, with a strong market presence in Germany, the UK, France, Italy, and Central and Eastern Europe. While the retailer’s core focus is food, a significant share of its non-food products, including household goods and textiles, still comes from China. The addition of Vietnam and Malaysia to its direct shipping routes indicates a strategic push to increase imports of non-food items from Southeast Asia.
The timing of this shift is also influenced by trade policy. While Vietnam and Malaysia were recently subject to temporary US tariffs of 24% and 46% respectively, goods from China face duties as high as 55%. This has accelerated efforts among global retailers to encourage Chinese suppliers to relocate production to alternative markets in the region.
(Source: Vietnam Investment Review)
