Foreign Retailers Use Franchises For Early Foot In VN Door
They are popping up all over the place – Lotteria, KFC, Gloria Jean’s Coffees, Medicare…
In a mad rush to gain an early foothold in the Vietnamese market, many of the big names mentioned above have taken the franchise route over the last ten years.
The retail market is set to be opened up to 100 percent foreign owned companies next year as part of Vietnam’s WTO commitments.
“In this fierce battle, the fastest is the winner,” says chief executive of Japanese electronic supermarket chain Best Denki’s franchise, Best Carings, Le Hong Xuan.
Best Carings was the first franchise opened by a foreign supermarket chain in Vietnam. It was set up two years ago by Best Denki, one of five leading electronics retailers in Japan and HCMC-based Ben Thanh Company’s Carings electronics and home appliances supermarket.
Another Japanese supermarket chain, Daiso, started a franchise in the southern province of Tay Ninh early this year.
7-Eleven, a well-known Japanese retail brand, is in talks with a Vietnamese partner to open the 24/7 outlets here, a source from the Vietnam Franchise Club said.
Thai technology and trading company Loxley has also said it plans to open a chain of 24-hour convenience shops in Vietnam by the end of this year or early next year through franchisees.
“Many more will come,” Dinh Thi My Loan, general secretary of the Vietnam Retail Association recently told local media. Continue reading.
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