The Ministry of Industry and Trade (MoIT) has licensed 17 foreign enterprises specialising in franchises to operate in Vietnam so far this year, according to statistics from the ministry.
Foreign fast food chains have been in Vietnam for more than 10 years and have annual revenue of trillions of dong. But many of them continuously take losses.
As fast food giants Lotteria and KFC report losses despite dominating the domestic market, their attractiveness to customers shows no signs of abating.
The Ministry of Industry and Trade has granted 206 franchise licences for foreign brands in Vietnam since 2007, reports from the ministry showed.
Most foreign fast food chains in Vietnam have failed to realise their initial expansion plans made upon entering the market. Recently, some have suggested that international brands have failed to defeat local Vietnamese food stalls.
VOV.VN - Philippines-based fast food chain Jollibee has revealed plans to open an additional 20 franchises across Vietnam by 2020 as part of a robust expansion strategy serving the Vietnamese market.
Many investors who once intended to start up business with franchise contracts have given up because of the high investment rate.
Consumers in the Association of Southeast Asian Nations (ASEAN) are tightening their belts during a sluggish economic time by cutting their spending on fast food.
Jollibee has begun franchising in Vietnam, marking a new strategy in the country for the Philippine fast food chain.
(VOV) - More than 170 exhibitors from 12 countries attended the November 5 kick-off of the annual Vietnam International Retail and Franchise Exhibition (VIETRF) in Ho Chi Minh City.