Franchises to boom in Vietnam
VietNamNet Bridge - 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, Vietnam 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 co-operation 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 US $100,000. Pho 24, a trademark for a Vietnamese rice noodle company, has set up 19 similar shops across Vietnam 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 Vietnam.
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