Franchising, which has proved popular in Vietnam, is likely to continue flourishing in the country, foreign experts told a seminar Tuesday (05) in Ho Chi Minh City.
It would offer an excellent route for multinational firms to enter Vietnam and for domestic enterprises to expand overseas, market analysts told the seminar hosted by the city’s Investment and Trade Promotion Center.
Franchising is a form of business in which a firm with a successful product or service (the franchisor) enters into a relationship with other businesses (franchisees) to operate under the franchisor’s trade name.
Solid prospects
Last year the franchising market surged 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 franchise haven: a young market, high economic growth, and stable political system. The Vietnamese government has passed the Franchising Decree, which is expected to help bolster the business in the country.
Han Guang Chou, deputy general director of Han’s Singapore Pte Ltd, a Singapore-based fast food brand, said the company had standardized its model for overseas expansion and Vietnam was its 1st destination.
McDonald’s restaurants of the US plan to enter Vietnam early next year after it becomes a full WTO member. Other big Singapore brands like Charles & Keith shoes, Celia Loe Chapter 2, and fast food makers Bread Talk, Cavana, and Koufu surveyed the Vietnamese market last year and plan to look for franchisees. KFC opened 17th restaurant in Vietnam earlier this year and plans to top 100 by 2010.
No comments yet.