A
lot of the US brands have appeared on the Vietnamese market recently.
Meanwhile, experts believe that the US franchised food chains would be much
bigger than now.
The well known ice cream Baskin-Robbins brand
has officially set its foot on the Vietnamese market by setting up three first
shops in HCM City opened last week, through the exclusive partner Blue Star
Food.
Nguyen Thanh Nam, general director of Blue
Star Food, said that he plans to develop 50 Baskin Robbins in the next five
years.
KFC of Yum Brands is still leading the fast
food franchising chains in Vietnam. In 1997, the first shop of the chain was
opened. After that KFC operated in Vietnam with just one shop in HCM City.
Meanwhile, by the end of 2011, the number of KFC in Vietnam had reached 1000.
It expects to double the number of shops by 2015. The fast food chain now holds
60 percent of the fast food market in Vietnam with many shops located on
advantageous positions.
Pizza Hut of Yum Brands also arrived in
Vietnam in 2007, while the franchised chain has developed rapidly with 20 shops
which also provide Pizza Hut Delivery service as well.
Subway in 2011 also announced the plan to
develop sandwich shop chain with the two first franchised shops located in HCM
City. Mark Mc Grath, Managing director of Subway Vietnam, said that Subway
plans to open 10 shops this year and 50 in the next five years. Besides the
shops which Subway would keep direct management, it would also push up the
franchising.
According to the Ministry of Industry and
Trade, up to 70 foreign brands have registered franchising business in Vietnam.
Most of them are consumer brands which target the youth and the middle class
consumers.
KFC, Pizza Hut, Lotteria, Jollibee, the
pioneers in the markets have successfully "changed waste lands into
cultivated areas," which has made the market ready to receive other
brands.
The Vietnamese market is waiting other well
known fast food brands from the US, such as McDonald's, Starbucks, while other
names such as Round Table Pizza, Applebee's, Focus Brands, Which Wich, Melting
Pot... are reportedly seeking the way to Vietnam or looking for suitable
Vietnamese partners.
Market conditions now more favourable
Franchising brands all say that the Vietnamese
market has become more favourable than many years ago. Especially, the
purchasing power has increased rapidly, while Vietnamese consumers have also
got used to US fast food brands. Especially, franchising chains said it is now
much easier to look for Vietnamese partners because they have become more
professional.
Analysts also said that in the past, seeking
retail premises was a big obstacle, because there were not many trade centers,
while the retail premises rents were sky high.
Meanwhile, franchising chains now have many
more choices.
Vietnam has become a target market for
franchising chains also because of the rapid increase of the number of medium
class consumers which is expected to double by 2015. Fast food shops now also
target the youth and put high hopes on the growth of tourists.
Beth Solomon, deputy Chair of the US
Franchising Association, has also noted that it is now the right time for US
companies to join the franchising market in Vietnam.
In the current economic period, the owners of
franchising chains are under the pressure of pushing up the growth, and they
tend to seek new markets. Therefore, Vietnam has emerged as one of the most
attractive points in Asia.
VietNamNet
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