These businesses are franchises that mainly operate in the fields of food and beverage, health care, education and training, services, and restaurants.
Vietnam’s Ministry of Industry and Trade statistics show that as of April, more than 120 foreign enterprises registered for franchising in Vietnam. These franchises achieved annual growth of more than 30% and their annual sales hit more than US$30 million.
Vietnam is opening its retail market in 2014, creating conditions for foreign businesses to eye franchising in the country.
Franchising is the optimal choice in bringing business opportunities for enterprises, especially in potential markets like Vietnam, according to a Vietnamese business executive.
Vo Tan Thanh, Director of the Vietnam Chamber of Commerce and Industry (VCCI) in Ho Chi Minh City, said currently, in Vietnam, franchise models attract not only domestic investors but also foreign firms.
The involvement of international brands opens up opportunities for domestic consumers to access high-quality goods and services, he said, adding it also requires domestic enterprises to improve their innovation, creativity and standards to meet consumer demand.