Franchising The Key To Successfully Entering Vietnam Market

Thanhniem:

Multinational firms will rely on franchising to enter Vietnamese market, considered the best way for business expansion in Vietnam, according to market analysts.

Analysts also forecast that the franchising market would grow strongly after Vietnam enters the World Trade Organization.

Franchised businesses 1st appeared in Vietnam in 1990s with the advent of high-profile international fast food and beverage chains including Kentucky Fried Chicken (KFC), Dilmah, Lotteria and Jollibee.

KFC restaurants in Vietnam increased to 17 early this year from 14 shops in 2005 and the operator schemed to reach 100 in 2010.

As a form of business operation, franchising is growing at a rate of about 20% annually, with a total of 70 companies now operating under both international and Vietnamese brands, according to trade officials.

Last year alone, the franchising market witnessed a strong surge of 30%, with more than 530 new franchisees and the transfer of 800 brands including 100 local brands.

According to global franchisers, Vietnam has all the hallmarks of a marketing haven for franchises: a young market, high economic growth and stable politics. More.