In the first half of this year, theMinistry of Industry and Trade granted licences for the franchise dealsof 15 overseas companies, mostly from the US, Belgium and Canada, inthe food and beverage, fashion and information technology industries inVietnam.
The figure reflected a noticeable growing interest from foreign groupsin franchise operations in Vietnam , where the consumer market isgetting more powerful and the population has now reached 85 millionpeople.
Currently, the US ’s Grainger Group is looking for Vietnamesemanufacturers of industrial equipment and other devices to supply tothe group, which already sells 850,000 different products. Grainger hasestablished a network of 18 distribution centres and 600 branchesscattered around the world.
The Vietnam Business and Franchise Association and the Business Centrefrom the Republic of Korea have forecast that the Vietnamese franchisesector will earn 36 million USD in revenue in 2010 if it keeps growingat the current rate.
They also forecast that by 2010 the number of franchised shops in thecountry will rise by 50 percent. In 2008 there were only 890.
The Japan External Trade Organisation (JETRO) has predicted thatfranchise activities in Vietnam will heat up in the near future,particularly in the catering and tourism industries, as a large numberof Japanese businesses have shown their eagerness to start upbusinesses in the country.
More Vietnamese businesses are accepting franchises as an appropriateway of securing their investments when trying to establish a niche inlocal markets and indirectly penetrating foreign markets in a quickerand easier fashion, if they are not strong enough financially to launchoverseas promotions themselves.
For example, the Phu Thai Group, one of Vietnam ’s leading distributorsof consumer goods, has teamed up with Japan ’s Family Mart to develop anetwork to distribute Japanese goods in Vietnam and Vietnamesecommodities in Family Mart’s stores in Japan .
Pho 24 is a successful example in the franchise business, as six yearsafter starting up, it has established a total of 70 franchisedrestaurants in and out the country.
The company is mulling over a plan to increase its franchises to 80 bythe end of this year with the opening of its first restaurant in HongKong and its second in the Republic of Korea in October.
The company expects to set up more franchised shops in Japan , China and the US in 2010.
At present, there are around 70 franchising networks operating inVietnam , mainly Malaysia ’s Parkson , Germany ’s Metro, the US ’sCBRE, Dilmah and KFC. Several Vietnamese businesses are joining thesenetworks, such as Trung Nguyen Coffee, Pho 24, Kinh Do Bakery, AQ Silkand 24-Seven./.
The figure reflected a noticeable growing interest from foreign groupsin franchise operations in Vietnam , where the consumer market isgetting more powerful and the population has now reached 85 millionpeople.
Currently, the US ’s Grainger Group is looking for Vietnamesemanufacturers of industrial equipment and other devices to supply tothe group, which already sells 850,000 different products. Grainger hasestablished a network of 18 distribution centres and 600 branchesscattered around the world.
The Vietnam Business and Franchise Association and the Business Centrefrom the Republic of Korea have forecast that the Vietnamese franchisesector will earn 36 million USD in revenue in 2010 if it keeps growingat the current rate.
They also forecast that by 2010 the number of franchised shops in thecountry will rise by 50 percent. In 2008 there were only 890.
The Japan External Trade Organisation (JETRO) has predicted thatfranchise activities in Vietnam will heat up in the near future,particularly in the catering and tourism industries, as a large numberof Japanese businesses have shown their eagerness to start upbusinesses in the country.
More Vietnamese businesses are accepting franchises as an appropriateway of securing their investments when trying to establish a niche inlocal markets and indirectly penetrating foreign markets in a quickerand easier fashion, if they are not strong enough financially to launchoverseas promotions themselves.
For example, the Phu Thai Group, one of Vietnam ’s leading distributorsof consumer goods, has teamed up with Japan ’s Family Mart to develop anetwork to distribute Japanese goods in Vietnam and Vietnamesecommodities in Family Mart’s stores in Japan .
Pho 24 is a successful example in the franchise business, as six yearsafter starting up, it has established a total of 70 franchisedrestaurants in and out the country.
The company is mulling over a plan to increase its franchises to 80 bythe end of this year with the opening of its first restaurant in HongKong and its second in the Republic of Korea in October.
The company expects to set up more franchised shops in Japan , China and the US in 2010.
At present, there are around 70 franchising networks operating inVietnam , mainly Malaysia ’s Parkson , Germany ’s Metro, the US ’sCBRE, Dilmah and KFC. Several Vietnamese businesses are joining thesenetworks, such as Trung Nguyen Coffee, Pho 24, Kinh Do Bakery, AQ Silkand 24-Seven./.
