Franchises to boom in Viet Nam
06/08/2010 - 188 Lượt xem
Franchises will become one of the most important business models for Vietnamese enterprises to keep market share while a series of foreign retail giants and supermarkets begin to penetrate the country as the country joins the World Trade Organisation (WTO).
Experts elaborated that establishing franchises is considered as a reliable investment norm, especially for enterprises that plan to reach potential markets like the US, the European Union (EU) and Japan. This not only helps Vietnamese businesses penetrate big markets with low costs but also helps them to protect their trademarks.
According to the foreign business circle's assessment, Viet Nam has a potential for franchises due to its political stability and young consumers who are almost all under 30 years old. The business form is expected to boom in the country.
Director of the HCM City Investment and Trade Promotion Centre (ITPC) Vu Kim Hanh said that the US retail giant Wal-Mart has developed a business cooperation plan with the city's businesses. A number of traditional Vietnamese products, including handicraft items, garments and apparels, and food, can take this model.
XQ Embroidery, for example, has provided its franchise for its trademark name in the US for 100,000 USD. Pho 24, a trademark for a Vietnamese rice noodle company, has set up 19 similar shops across Viet Nam thanks to its franchise. There is also one in Indonesia. Meanwhile, many Singaporean enterprises plan to seek Vietnamese partners to make franchises in the country.
Mrs Hanh said that the ITPC plans to collaborate with the Viet Au Company to establish a Club of Franchised Enterprises in Viet Nam.
The Trung Nguyen Cofffee Company has become the first Vietnamese enterprise to use this business model.
Founded in 1996, the Trung Nguyen coffee trademark is present in 64 provinces and cities across the country with more than 500 coffee shops. It can also be found in Japan, Cambodia, Singapore and Thailand. At present, Trung Nguyen Coffee Company's G7 Mart model is making efforts to compete against foreign distributors for retail market share by using the franchise model.
In addition, the Kim Dan Joint Stock Company is also one of the most successful business with this type of model. It has a distribution network of around 30,000 retail agents nationwide
Source: VNAgency
Experts elaborated that establishing franchises is considered as a reliable investment norm, especially for enterprises that plan to reach potential markets like the US, the European Union (EU) and Japan. This not only helps Vietnamese businesses penetrate big markets with low costs but also helps them to protect their trademarks.
According to the foreign business circle's assessment, Viet Nam has a potential for franchises due to its political stability and young consumers who are almost all under 30 years old. The business form is expected to boom in the country.
Director of the HCM City Investment and Trade Promotion Centre (ITPC) Vu Kim Hanh said that the US retail giant Wal-Mart has developed a business cooperation plan with the city's businesses. A number of traditional Vietnamese products, including handicraft items, garments and apparels, and food, can take this model.
XQ Embroidery, for example, has provided its franchise for its trademark name in the US for 100,000 USD. Pho 24, a trademark for a Vietnamese rice noodle company, has set up 19 similar shops across Viet Nam thanks to its franchise. There is also one in Indonesia. Meanwhile, many Singaporean enterprises plan to seek Vietnamese partners to make franchises in the country.
Mrs Hanh said that the ITPC plans to collaborate with the Viet Au Company to establish a Club of Franchised Enterprises in Viet Nam.
The Trung Nguyen Cofffee Company has become the first Vietnamese enterprise to use this business model.
Founded in 1996, the Trung Nguyen coffee trademark is present in 64 provinces and cities across the country with more than 500 coffee shops. It can also be found in Japan, Cambodia, Singapore and Thailand. At present, Trung Nguyen Coffee Company's G7 Mart model is making efforts to compete against foreign distributors for retail market share by using the franchise model.
In addition, the Kim Dan Joint Stock Company is also one of the most successful business with this type of model. It has a distribution network of around 30,000 retail agents nationwide
Source: VNAgency
