09:58 | 26/07/2018 Economy- Society
The Ministry of Industry and Trade has granted 206 franchise licences for foreign brands in Vietnam since 2007, reports from the ministry showed.
|The MoIT has granted 206 franchise licences for foreign brands in Vietnam since 2007 - Source: dtctech.vn|
Of the total, ten brands were licensed in the first half of this year, according to the report.
The majority of franchisers were from the US, the UK, France, Australia, the Republic of Korea, Singapore, Thailand, Japan, Hong Kong, Taiwan, Canada and the Philippines.
Nguyen Phi Van, chairwoman of Retail & Franchise Asia, founder and manager of World Franchise Association, said Vietnam ranked eighth out of the top 12 markets identified by the International Franchise Association as the most valuable markets for international expansion.
The sectors with the most franchising potential were food and beverages, education, health and nutrition, business services, hospitality, fashion, beauty and skincare, entertainment, children’s services and convenience stores, she said.
Vietnam would continue to be a destination for international brands, especially regional brands, Van said, forecasting that the trend would continue in the next three years.
At the same time, Vietnamese brands had also started to develop platforms to promote their brands in the world market.
Franchising began in the country 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.
More Vietnamese businesses were now exploring new business opportunities available via franchising, Van said, adding however, the Vietnamese franchise market was still new, and local businesses did not have much understanding of it.
As a new market, experts suggested there are a number of risks that a franchiser should investigate carefully before engaging or expanding businesses in Vietnam.
On the other hand, Vietnamese franchisers needed to be knowledgeable about the franchise business as well as seek consultancy from industry experts to avoid risks, they said.