Bright outlook for franchising in Vietnam
This coffee enterprise has franchised more than 2,000 outlets nationwide since 2010. With limited initial capital, an individual can own a coffee shop like this, including the brand’s standard equipments such as design, interior, machinery, sound system and coffee mixing tools.
It is one of many successful franchising stories in Vietnam.
Nguyen Khac Hung, Director of Napoli Coffee said "Franchising has become a global trend, and Vietnam is no exception. However, the story in Vietnam is different, for example we should reduce costs for partners to avoid pressure in franchising."
In developed countries, franchising is a key model for businesses to penetrate the world market. Vietnam has become a potential market for large international and regional enterprises. Local businesses have also started franchising their brands to expand market share and increase brand value.
According to economists, local franchisors face many challenges such as lack of capital, human resources and suitable business models.
There’s a lot for Vietnamese enterprises to do to catch up with other regional countries in terms of developing brand franchising. However, the country can make use of those countries’ experiences to develop its own strategies in the field.
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