15:12 | 23/08/2019 Economy- Society
Vietnam’s retail market, one of the three most dynamic in Asia-Pacific, grows 12 percent annually, making it a new rich land for franchisers.
|A Vinmart+ convenience store - Photo: VNA|
According to Yun Ju Young, managing director of GS25 Vietnam, the country has yet to have any retail franchise brands.
Meanwhile, Nielsen Vietnam’s statistics show that the number of convenience stores nationwide has increased four-fold since 2012. Thousands of these are operating nationwide, with the largest density recorded in the two major cities of Hanoi and Ho Chi Minh City.
It is projected that convenience store franchises will be a new profitable business model in the coming time because costs are lower than in other sectors while management is easier.
Insiders said convenience store chain franchises from Japan, China’s Taiwan and other countries are eyeing the Vietnamese market. Following the trend, Vietnamese retailers have also stepped up their franchising efforts.
Saigon Co.op for instance is franchising its Co.op Food convenience store in HCM City and other cities and provinces, and targets the opening of 100 new stores this year.
Nguyen Phi Van, founder and chairwoman of Retail & Franchise Asia, said Vietnam is rated highly by the International Franchise Association as a franchise market.
However, she said 90 percent of franchisers in Vietnam follow the traditional model without applying digital technology, which is likely to result in losses and withdrawal from the market.