Vietnam now has about 70 separate franchising operations, marketing both local and overseas brands.
Trung Nguyen coffee is a Vietnamese pioneer in franchising with more than 1,000 franchised coffee shops in Japan, China, Thailand and Singapore.
Other big Vietnamese franchisers include Pho 24, which has outlets in Singapore, China and Japan, Kinh Do Bakery and Bon Mua (Four Seasons) Food and Drink restaurants.
Specialists expect that franchising will become popular in Vietnam in the future.
Meanwhile, foreign investors believe Vietnam is a good potential market for franchises. Last year, Eastern Media Holding Group signed a franchising agreement with Vietnam’s Apex Media to publish Walt Disney printed material.
Franchising has allowed many Vietnamese companies to develop their market and improve the value of their names. Both franchisers and franchisees can benefit from this activity.
However, franchising can also expose weaknesses. A poorly decorated shop or bad service will leave unfavourable impressions on customers, or some businesses have even lost their own brands because of the actions of franchisees.
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