Vietnam ranks eighth for global franchise expansion
Vietnam is the world's eighth most valuable market for global franchise expansion, according to the International Franchise Association.
|A McDonald's restaurant near Hoan Kiem Lake, Ha Noi. Potential sectors for franchising include food and beverage, education, healthcare and nutrition, hospitality and fashion.|
The potential sectors for franchising include food and beverage, education, healthcare and nutrition, business services, hospitality, fashion, beauty and skincare, entertainment, children’s services and convenience stores, according to Nguyen Phi Van, chairwoman of Retail & Franchise Asia.
A report by the Korea Agro-Fisheries & Food Trade Corporation said Viet Nam is the most popular destination for 43 percent of companies from the Republic of Korea. The total number of Korean food and beverage outlets in the country reached 360.
Van said Viet Nam would remain an appealing destination for international brands, especially regional brands, in the next three years. Health services, salons and repair services will see an increase in franchises, she said.
Franchising began in Viet Nam in the 1990s with the introduction of well-known fast food chains like KFC, Lotteria and Jollibee. It began in regional countries like Malaysia, Singapore and Thailand in the 1980s.
The Vietnamese franchise market is still relatively new, and local businesses do not have much understanding of or experience with it.
Last year, the Minisry of Industry and Trade reported it had granted 206 franchise licences to foreign brands since 2007. — VNS